Top 10 Arbitrage Funds 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 seeking portfolio hedges
- Family offices needing stable, short-term deployment options
- Institutional investors looking for alpha generation without directional bets
- Retail investors who want better returns than liquid funds with lower market exposure
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 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: Cross-border arbitrage across equities, derivatives, and FX in developed and emerging markets. Advanced AI-powered execution and real-time analytics enable consistently strong risk-adjusted returns.
- Market-neutral across multiple asset classes
- High-frequency trading infrastructure
- Institutional-grade portfolio management
- Tailored solutions for HNIs, family offices, and global investors
2. PIMCO Absolute Return Arbitrage Fund
Combines convertible arbitrage with fixed-income spreads and prudent hedging via credit default swaps to prioritize capital preservation.
3. Schroders Global Arbitrage Opportunities Fund
Focuses on index and merger arbitrage with international reach, supported by strong research and fast execution.
4. BlackRock Strategic Arbitrage Fund
Deep exposure to currency arbitrage and multi-market inefficiencies; thrives on rapid execution across regions.
5. Franklin India Arbitrage Fund
A leading low-volatility option for conservative domestic allocations amid dynamic markets.
6. JPMorgan Global Arbitrage Fund
Heavy focus on merger arbitrage, exploiting spreads in announced M&A deals with robust fundamental and legal analysis.
7. Edelweiss Arbitrage Fund
Consistent domestic performer using cash-futures arbitrage and short-term inefficiencies.
8. Invesco Global Arbitrage Opportunities
Diversifies into volatility and statistical arbitrage for dynamic performance in turbulent conditions.
9. Man Group AHL Alpha Arbitrage Strategy
Quant-driven approach uncovering short-lived plays; strong in statistical and derivatives-based arbitrage.
10. ICICI Prudential Equity Arbitrage Fund
Domestic favorite delivering stable arbitrage returns from an experienced team.
What Makes a Good Arbitrage Fund?
- Low volatility across market cycles
- Proven track record of positive alpha
- Hedged positions that reduce directional risk
- Liquidity, transparency, and flexible redemption terms
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.