New Delhi, July 30 -- Arbitrage funds have emerged as the best-performing hybrid mutual fund category in 2026 so far, according to category performance data.

The category has generated a 3.35% year-to-date (YTD) return, making it the best-performing segment among hybrid mutual funds in 2026 so far. It has narrowly outpaced Income Plus Arbitrage Funds, which have returned 3.28%, while the remaining hybrid categories have lagged considerably.

Conservative Hybrid Funds have gained 1.55%, and returns from Multi Asset Allocation and Equity Savings Funds have remained below 1.5%. Meanwhile, Aggressive Hybrid Funds and Dynamic Asset Allocation Funds have slipped into negative territory this year.

Arbitrage funds are hybrid mutual fund schemes...