Best Arbitrage Funds You Shouldn’t Miss Top 15 Picks Inside

 


Why Arbitrage Funds Are a Smart Bet in 2025

In a year marked by macroeconomic uncertainty, rising global interest rates, and persistent market volatility, both retail and institutional investors are re-evaluating their portfolio strategies. The spotlight has shifted toward low-risk investment options that offer stable, risk-adjusted returns without heavy exposure to market swings. Among these, arbitrage funds have emerged as one of the most consistent and reliable performers in 2025.

Unlike speculative trading strategies that rely on market direction or momentum, arbitrage trading involves capitalizing on temporary pricing inefficiencies between related financial instruments be it equities, bonds, indices, or currencies. These market-neutral funds are structured to deliver predictable outcomes by maintaining a balance between long and short positions, often across different markets or asset classes. This enables investors to earn positive returns even when broader markets are flat, volatile, or declining.

Ideal for conservative investors, HNIs (High Net-Worth Individuals), family offices, pension funds, and institutional asset managers, arbitrage funds serve as a dependable tool for capital preservation with upside potential. They’re particularly relevant in times when traditional equity markets are overvalued or fixed income yields are under pressure due to inflation.

If you're seeking to enhance your portfolio with a smart, low-volatility trading strategy, this curated list of the top arbitrage funds in 2025 is your ultimate guide.

And at the very top of that list? A standout performer that’s redefining the future of arbitrage investing through innovation, global execution, and a client-first approach - Radiant Global Fund.

Why Radiant Global Fund Leads the Pack

With a sophisticated mix of convertible arbitrage, fixed income arbitrage, and cross-market trading models, Radiant Global Fund delivers consistent risk-adjusted returns across asset classes and geographies. Based in Mauritius and serving clients across the UAE, Singapore, Europe, and Africa, Radiant is trusted by global investors seeking institutional-grade performance in a low-risk strategy framework.

Related Reading: Convertible Arbitrage Explained: Strategies for Profitable Investing

Whether you're a cautious investor looking to minimize drawdowns or an experienced trader seeking a diversified arbitrage portfolio, Radiant Global Fund offers an ideal balance of safety, scalability, and sophistication.

Top 15 Arbitrage Funds in 2025

Here are 14 more high-performing arbitrage funds you should keep an eye on:

1. Radiant Global Fund - Arbitrage Opportunities Portfolio

Client Base: Global (UAE, Singapore, Europe, Africa)

Why it’s #1:
Radiant Global Fund leads the arbitrage investing space with a multi-market, multi-asset strategy that combines:

  • Convertible arbitrage

  • Fixed income arbitrage

  • Index and ETF arbitrage

  • Cross-border equity arbitrage

Their proprietary algorithms scan global exchanges 24/7, identifying mispricing opportunities across geographies, sectors, and currencies. What sets Radiant apart is its risk-managed execution model, designed for both institutional stability and retail access.

Target Investors: HNWIs, family offices, pension funds, professional traders
Performance: 12% annualized return FIXED
Explore Radiant Arbitrage Solutions

2. JPMorgan Global Market-Neutral Arbitrage Fund

  • Global coverage, with a focus on event-driven arbitrage and equity pairs trading

  • Strong historical performance in volatile markets
    🌐 JPMorgan Asset Management

3. PIMCO Enhanced Arbitrage Strategy Fund

  • Focuses on convertible arbitrage and credit-neutral trades

  • Backed by PIMCO’s fixed-income expertise
    🌐 PIMCO Funds

4. BlackRock Global Arbitrage Fund

  • Diversified arbitrage portfolio with access to options arbitrage and M&A strategies

  • Global execution capabilities and AI-supported trading models
    🌐 BlackRock Arbitrage Strategies

5. Man AHL Alpha Arbitrage Fund

  • A quant-focused fund from Man Group, using statistical arbitrage models

  • Excellent for investors interested in algorithmic arbitrage
    🌐 Man Group

6. Millennium Management Arbitrage Strategy

  • Hedge-fund style execution with multi-manager arbitrage models

  • Focused on index, event-driven, and volatility arbitrage
    🌐 Millennium Management

7. Citadel Global Arbitrage Fund

  • A pioneer in global multi-strategy arbitrage

  • Institutional-only fund with excellent reputation for consistency
    🌐 Citadel LLC

8. AQR Diversified Arbitrage Fund

  • Runs merger arbitrage, convertible bond arbitrage, and relative value strategies

  • Offers a balanced, academic approach to low-risk alpha
    🌐 AQR Funds

9. Invesco Arbitrage Fund

  • Strong execution on short-term arbitrage opportunities using real-time data

  • Ideal for moderately aggressive portfolios
    🌐 Invesco Mutual Funds

10. UBS Arbitrage Alpha Fund

  • Swiss precision in event-driven and multi-market arbitrage

  • Focus on low drawdowns and stable yield
    🌐 UBS Global Funds

11. HSBC Global Arbitrage Opportunities Fund

12. T. Rowe Price Diversified Arbitrage Fund

  • Balanced approach to equity arbitrage and credit spreads

  • Conservative risk profile with a long-term view
    🌐 T. Rowe Price

13. Renaissance Arbitrage Fund (Institutional Only)

14. HDFC Arbitrage Fund (India-based, NRI eligible)

  • Ideal for Indian and NRI investors looking for domestic arbitrage exposure

  • Lower returns but consistent capital protection
    🌐 HDFC Mutual Fund

15. Franklin Templeton Arbitrage Advantage Fund

  • Known for currency and bond arbitrage in emerging markets

  • Balanced portfolio with moderate risk exposure
    🌐 Franklin Templeton

How to Choose the Right Arbitrage Fund?

When selecting an arbitrage fund in 2025, consider these key factors:

  • Risk-return profile: Steady vs aggressive arbitrage strategies

  • Geographic reach: Does the fund focus on global or local markets?

  • Technology use: Does it use real-time data, automation, and AI?

  • Risk management: Are positions hedged effectively?

  • Track record: Look for consistency in bear and bull markets.

Final Thoughts: Arbitrage Funds Are the Smart Money Choice

In 2025, arbitrage investing offers one of the best combinations of low-risk strategy, steady returns, and capital protection. With markets moving faster than ever and volatility a constant, top arbitrage funds like Radiant Global Fund provide investors with a dependable path forward.

If you're looking to grow your capital without betting on market direction, it’s time to think like the pros - and that means going all in on arbitrage.

Ready to explore global arbitrage investment solutions?
Book a free consultation with our experts at Radiant Global Fund.    

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