Franklin India Arbitrage Fund
Franklin India Arbitrage Fund has rotated toward higher-conviction picks in banking and select quality names, evidenced by significant inflows into Sun Pharma and fresh positions in infrastructure plays like Adani Ports and Hindalco. The manager is lightening its largest holdings while maintaining heavy banking exposure at nearly 20 percent, signaling selective optimization rather than fundamental repositioning. The strategy remains anchored in debt-like securities and low-volatility equities typical of arbitrage mandates, with modest turnover suggesting measured conviction in recent market opportunities.
Portfolio analysis · April 2026
NAV & Returns
| Plan | NAV | 1M | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|---|
| Regular Growth | ₹10.9452 | +0.31% | +6.13% | — | — |
Portfolio Metrics(latest month)
vs Category Peers
Active Stock PickerActive Share = ½Σ|wfund − wpeer|, computed using leave-one-out peer portfolio within SEBI category.
Similar Funds in Category
What Changed2026-03-31 → 2026-04-30
| Stock | Weight |
|---|---|
| Oil & Natural Gas Corporation Ltd | 1.10% |
| Adani Ports and Special Economic Zone Ltd | 0.69% |
| Hindalco Industries Ltd | 0.37% |
| Jubilant Foodworks Ltd | 0.31% |
| United Spirits Ltd | 0.13% |
| Grasim Industries Ltd | 0.10% |
| Godrej Consumer Products Ltd | 0.09% |
| REC Ltd | 0.06% |
| Coforge Ltd | 0.06% |
| Biocon Ltd | 0.04% |
| Fortis Healthcare Ltd | 0.03% |
| CG Power and Industrial Solutions Ltd | 0.03% |
| IndusInd Bank Ltd | 0.03% |
| Hero MotoCorp Ltd | 0.03% |
| Eicher Motors Ltd | 0.02% |
| GMR Airports Ltd | 0.02% |
| Lupin Ltd | 0.02% |
| APL Apollo Tubes Ltd | 0.01% |
| Suzlon Energy Ltd | 0.01% |
| Adani Power Ltd | 0.01% |
| Exide Industries Ltd | 0.01% |
| National Bank For Agriculture & Rural Development (17-Mar-2027) ** | 3.96% |
| Union Bank of India (12-Mar-2027) | 0.79% |
Full Holdings
| # | Holding | % to NAV |
|---|---|---|
| 1 | Franklin India Money Market Fund Direct-Growth Plan ^^ ~ INF090I01GV8 | 11.87% |
| 2 | HDFC Bank Ltd $ ~~ INE040A01034 | 4.64% |
| 3 | Reliance Industries Ltd $ # INE002A01018 | 4.28% |
| 4 | ICICI Bank Ltd # ~~ INE090A01021 | 4.27% |
| 5 | Union Bank of India (16-Mar-2027) INE692A16LS3 | 3.97% |
| 6 | National Bank For Agriculture & Rural Development (17-Mar-2027) ** INE261F16AP5 | 3.96% |
| 7 | Credila Financial Services Ltd (01-Mar-2027) **@ INE539K14BZ6 | 3.16% |
| 8 | Vodafone Idea Ltd INE669E01016 | 2.63% |
| 9 | Larsen & Toubro Ltd INE018A01030 | 2.46% |
| 10 | Sun Pharmaceutical Industries Ltd INE044A01036 | 2.27% |
| 11 | Bharti Airtel Ltd INE397D01024 | 2.18% |
| 12 | State Bank of India INE062A01020 | 2.14% |
| 13 | Eternal Ltd $$ ## INE758T01015 | 2.13% |
| 14 | Bharat Electronics Ltd INE263A01024 | 2.10% |
| 15 | Axis Bank Ltd !! ~~ INE238A01034 | 2.09% |
| 16 | HDFC Bank Ltd (24-Feb-2027) INE040A16IO0 | 1.99% |
| 17 | Mahindra & Mahindra Ltd INE101A01026 | 1.75% |
| 18 | Adani Enterprises Ltd # * INE423A01024 | 1.72% |
| 19 | Asian Paints Ltd INE021A01026 | 1.71% |
| 20 | Tata Power Co Ltd INE245A01021 | 1.52% |
Sector Allocation
Top 10 sectors by % to NAV. Excludes derivatives.
Frequently Asked Questions
How many stocks does Franklin India Arbitrage Fund hold?
Franklin India Arbitrage Fund holds 119 stocks as per the latest AMFI portfolio disclosure. The top 5 positions account for 29.03% of NAV.
What is the largest holding in Franklin India Arbitrage Fund?
The largest position in Franklin India Arbitrage Fund is Franklin India Money Market Fund Direct-Growth Plan ^^ ~, accounting for 11.87% of NAV in the Mutual Fund sector.
Is Franklin India Arbitrage Fund a concentrated or diversified fund?
With a Gini coefficient of 0.671, Franklin India Arbitrage Fund is highly concentrated. The HHI concentration index is 32,474 bps, which is above the 2500 bps threshold for high concentration. The top 5 holdings together make up 29.03% of the portfolio.
What is the market cap allocation of Franklin India Arbitrage Fund?
Based on SEBI's AMFI classification, Franklin India Arbitrage Fund's equity portfolio is split as: Large Cap: 51.74%, Mid Cap: 12.49%, Small Cap: 3.02%. This reflects the fund's positioning within the market cap spectrum.
Which sectors does Franklin India Arbitrage Fund invest in most?
Franklin India Arbitrage Fund has the highest allocation to Banks (19.46%), Mutual Fund (12.19%), CRISIL A1+ (7.12%). The fund is invested across 46 sectors in total.
How actively managed is Franklin India Arbitrage Fund compared to other Arbitrage Fund funds?
Franklin India Arbitrage Fund has an Active Share of 57.05%, classifying it as "Active Stock Picker" among 34 Arbitrage Fund peers. This indicates a moderate level of differentiation from category peers.
What changed in Franklin India Arbitrage Fund's portfolio in the latest month?
Between 2026-03-31 and 2026-04-30, Franklin India Arbitrage Fund added 23 new stocks (including Oil & Natural Gas Corporation Ltd) and exited 6 stocks (including Tata Consumer Products Ltd). Total holding count increased from 103 to 120 stocks.