Old Bridge Mutual Fund has launched a new hybrid scheme — Old Bridge Arbitrage Fund Direct – Growth, open for subscription from 6th November to 10th November 2025. With a low-risk profile, this open-ended fund aims to generate income by capitalising on arbitrage opportunities in the equity market and investing the remaining portion in debt and money market instruments.
Key NFO Details
| Detail | Information |
| Fund Name | Old Bridge Arbitrage Fund (Direct – Growth) |
| NFO Period | 06 Nov 2025 to 10 Nov 2025 |
| Allotment Date | 13 Nov 2025 |
| Category | Hybrid – Arbitrage |
| Risk Level | Low |
| Fund Type | Open-ended |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Minimum Investment | ₹5,000 (lumpsum), ₹1,000 (SIP) |
| Exit Load | Exit load of 0.25%, if redeemed within 7 Days |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme seeks to:
• Generate regular income by investing in arbitrage opportunities between the cash and derivatives segments of the equity markets.
• Invest the balance in debt and money market instruments for stability and liquidity.
This approach offers a steady return potential with minimal equity market exposure risk, making it ideal for conservative investors.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 6.72% |
| 3 Years | 7.42% |
| 5 Years | 6.96% |
| 7 Years | 6.49% |
| 10 Years | 6.33% |
| 15 Years | 6.62% |
| Since Inception | 6.79% |
These averages reflect the category’s stable performance, aligning with low-risk income generation strategies.
Should You Invest in This NFO?
You may consider investing in this NFO if:
• You seek low-risk, short-term investment options with steady returns.
• You want to park funds temporarily while earning more than traditional savings accounts.
• You prefer arbitrage-based returns backed by debt instruments for stability.
However, investors should note that arbitrage mutual funds are not risk-free, and returns can vary depending on market conditions and arbitrage spreads.
About Old Bridge Mutual Fund
Old Bridge Mutual Fund manages ₹1,953 Cr AUM (as of September 30, 2025) and is led by renowned fund manager Kenneth Andrade.
| Fund Manager | Fund Name | Objective |
| Kenneth Andrade | Old Bridge Arbitrage Fund | Generate income from equity market arbitrage and debt investments |
Top-performing funds in the arbitrage category include:
| Fund Name | Fund Size | 5Y Returns |
| Tata Arbitrage Fund | ₹19,150 Cr | 6% p.a. |
| Invesco India Arbitrage Fund | ₹27,129 Cr | 6% p.a. |
| Edelweiss Arbitrage Fund | ₹16,053 Cr | 6% p.a. |
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Final Thoughts
The Old Bridge Arbitrage Fund NFO offers a low-risk investment option suitable for conservative investors seeking stability and modest returns. With its focus on equity arbitrage opportunities and debt allocation, it provides a balance between liquidity and income potential.
Before investing, review the scheme document and ensure it fits your short- to medium-term investment goals.
