Top 10 Good Arbitrage Funds That Are Performing Brilliantly in 2025

 

In the face of ongoing global economic uncertainty, investors are increasingly steering away from high-risk, high-volatility instruments and turning instead to low-risk trading strategies that prioritize capital protection and consistent returns. This shift in sentiment has led to a resurgence of interest in arbitrage mutual funds investment vehicles designed to deliver stability even when markets are turbulent.

So what exactly makes arbitrage funds so compelling in 2025?

At their core, arbitrage strategies capitalize on temporary pricing inefficiencies across related assets, markets, or instruments. These funds often involve simultaneous buying and selling of securities such as cash-futures arbitrage, index arbitrage, currency arbitrage, or convertible arbitrage to lock in near risk-free gains. Unlike traditional mutual funds that rise and fall with market sentiment, arbitrage mutual funds operate on a market-neutral basis, meaning they can generate risk-adjusted returns regardless of whether the markets are bullish, bearish, or flat.

This makes arbitrage investing especially attractive in 2025, a year marked by:

• Persistent volatility in equity and bond markets
• Fluctuating interest rates in both developed and emerging economies
• Global geopolitical tensions affecting investor confidence
• Heightened demand for strategies that offer liquidity and downside protection

Who Are Arbitrage Funds Best Suited For?

These funds are no longer just the domain of institutional giants. Today’s best performing arbitrage funds cater to a wide audience:

• HNIs (High-Net-Worth Individuals) seeking portfolio hedges
• Family offices needing stable, short-term deployment options
• Institutional investors looking for alpha generation without directional bets
• Even retail investors who want to minimize market exposure while earning better returns than liquid funds

And thanks to technological advancements in real-time data, cross-border execution, and algorithmic trading, arbitrage trading is more scalable and accessible than ever before.

 🔍 What is an Arbitrage Fund? (Investopedia)

 📈 Best Arbitrage Mutual Funds to Invest in (Morningstar)

 💼 Why Radiant Global Fund Leads in Multi-Asset Arbitrage

In this blog, we’ll explore 10 good arbitrage funds that are performing exceptionally well in 2025. From global funds with cross-market access to niche strategies focused on currency or merger arbitrage, these funds are proving that low-risk doesn’t mean low-return. Leading the list is Radiant Global Fund, an international arbitrage powerhouse redefining low-risk investing for HNIs and institutions alike.

👉 Ready to find the best arbitrage fund for your portfolio? Let’s dive in.

1. Radiant Global Fund – Multi-Asset Arbitrage Leader

Why It Stands Out:

Radiant Global Fund tops the list with its cross-border arbitrage strategy, covering equities, derivatives, and FX across developed and emerging markets. With advanced AI-powered execution and real-time data analytics, it delivers consistently strong risk-adjusted returns.

Key Features:

• Market-neutral across multiple asset classes
• High-frequency trading infrastructure
• Institutional-grade portfolio management
• Tailored solutions for HNIs, family offices & global investors

2. PIMCO Absolute Return Arbitrage Fund

Backed by one of the world’s most trusted fixed income managers, this fund combines convertible arbitrage with fixed-income spreads, ensuring stability and consistent gains.

Highlights:

• Strong fixed income arbitrage exposure
• Hedging via credit default swaps
• Focused on capital preservation

3. Schroders Global Arbitrage Opportunities Fund

This fund specializes in index arbitrage and merger arbitrage with an international footprint. Strong global research teams and fast execution make it a consistent top performer.

4. BlackRock Strategic Arbitrage Fund

With deep exposure to currency arbitrage and multi-market inefficiencies, this fund thrives on global mispricings and rapid execution across regions.

5. Franklin India Arbitrage Fund

One of the best arbitrage mutual funds in India, it offers investors a low-volatility product ideal for conservative allocation in dynamic markets.

6. JPMorgan Global Arbitrage Fund

This fund focuses heavily on merger arbitrage, capitalizing on the spread between announced M&A deals. It uses legal and fundamental research to assess deal success probabilities.

7. Edelweiss Arbitrage Fund

A consistent performer for domestic investors, it utilizes cash-futures arbitrage and takes advantage of short-term market inefficiencies.

8. Invesco Global Arbitrage Opportunities

This fund diversifies into volatility arbitrage and statistical arbitrage, making it a dynamic performer even in turbulent conditions.

9. Man Group AHL Alpha Arbitrage Strategy

Utilizes quantitative models to uncover short-lived arbitrage plays. It's particularly strong in statistical arbitrage and derivatives-based inefficiencies.

10. ICICI Prudential Equity Arbitrage Fund

A domestic favorite, it delivers stable arbitrage returns backed by one of the most experienced teams in the Indian fund space.

🔍 What Makes a Good Arbitrage Fund?

A good arbitrage fund typically shows:

• Low volatility across market cycles
• Proven track record of positive alpha
• Hedged positions that reduce directional risk
• Liquidity, transparency, and flexible redemption terms 

If you’re an investor looking for low-risk investment strategies, these top 10 arbitrage funds represent some of the best performing and most consistent options available today.

Final Thoughts: Stress-Free Investing Starts Here

In a time when uncertainty dominates market headlines, arbitrage funds offer a refreshing solution: low-risk, steady returns without the drama. Whether you're building a diversified portfolio or reallocating assets from more volatile sectors, these funds deserve serious consideration.

And if you're looking for a fund that leads on technology, global reach, and tailored service, Radiant Global Fund remains the smart money move.