Edelweiss Mutual Fund has announced changes in the fund management responsibilities of Edelweiss Arbitrage Fund. According to reports from Edelweiss Mutual Fund, the fund will now be managed by Rakesh Prajapati (Equity), Rahul Dedhia (Debt), Hetul Raval (Debt), Amit Vora (Co-Fund Manager Equity) and Bhavesh Jain (Equity) with effect from October 7, 2026. This represents a comprehensive restructuring of the fund's management team, with the addition of Rakesh Prajapati (Equity) to the existing team of four fund managers. The fund operates based on arbitrage opportunities rather than equity calls, as reported in the latest March 2026 factsheet.
As per the latest March 2026 factsheet, Edelweiss Arbitrage Fund reported a month-end AUM of ₹13,367 crore with an expense ratio of 0.39% for the direct plan. The fund maintains a short-term debt portfolio with an average maturity period of only 0.45 years, positioning it as a low-risk investment option. The fund's equity exposure includes major stocks such as HDFC Bank, ICICI Bank, Reliance Industries and JSW Steel, providing diversified market exposure across different sectors.
The fund's main limitation lies in its dependence on attractive arbitrage spreads for generating returns. As reported in the latest analysis, when cash-futures spreads narrow, the fund may have less opportunity to generate higher returns. The fund should not be treated like a bank deposit because its returns are market-linked and limited by arbitrage possibilities. The fund is particularly suitable for investors seeking short-term investment horizons who want to avoid equity fund risks while maintaining some market exposure through the arbitrage approach.
The management changes will take effect from October 7, 2026, according to the announcement by Edelweiss Mutual Fund. This represents a comprehensive restructuring of the fund's management team, with the addition of Rakesh Prajapati (Equity) to the existing team of four fund managers. The timing of these changes aligns with Edelweiss's broader fund management strategy to strengthen their mutual fund offerings across different asset classes, particularly in the arbitrage segment.
