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7 Best Performing Arbitrage Mutual Funds for 2020 | fincash.com

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7 Best Arbitrage Mutual Funds 2020

Updated on January 23, 2020 , 8010 views

Generally, people willing to invest in arbitrage funds look for the best arbitrage funds. But what are Arbitrage funds?

An arbitrage fund is a popular short-term financial investment in India. Arbitrage funds are Mutual Funds that leverage the differential price between the cash market and derivative market to generate mutual fund returns.

Top 10 Arbitrage Funds

The returns generated by arbitrage funds are dependent on the volatility of the stock market. Arbitrage mutual funds are hybrid in nature and in times of high or persistent volatility, these funds offer relatively risk-free returns to investors. Before Investing in these funds it is important to understand arbitrage funds taxation and know the best arbitrage funds.

Why Invest in Arbitrage Funds?

Here are some of the benefits of investing in arbitrage funds:

1. Negligible Risk

Arbitrage funds are not 100% risk-free but they do carry negligible risk. They bank on the mispricing happening in the markets. This gives the investor a safer option compared to other short-term funds since these funds offer better returns during market volatility.

2. Returns

These funds generally give a return of about 7-9% of the amount invested. This is higher compared to Liquid Funds or short-term debt funds in low rate enviornment (When RBI is reducing rate).

Risk-in-Arbitrage-Funds

Thus, making arbitrage funds a lucrative investment option.

3. Favourable Taxation

One of the biggest benefits of investing in these funds is the tax treatment. Equity Funds attract long term capital gains. If the gains are made up to INR 1 lakh then it counts under tax-free. Tax at 10% applies to gains above INR 1 lakh.

Arbitrage Funds Taxation

As mentioned above, these funds are taxed favourably. They are said to be a combination of good Debt fund returns and the tax treatment of equity mutual funds. If more than 65% of the fund is invested in equity, it will be considered as Equity Funds for taxation. As per the Budget 2018, equity funds would attract Long Term Capital Gains (LTCG). Investors would be taxed at 10% (with no indexation) under long term Capital Gain tax. Gains up to INR 1 lakh are free of tax. Tax at 10% applies to gains above INR 1 lakh. Short-term capital gains from equity attract a 15% concessional rate.

Therefore, if you are planning to make a short-term investment and avail tax benefits along with it, consider investing in arbitrage funds.

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Top 7 Arbitrage Mutual Funds 2020 - 2021

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
Aditya Birla Sun Life Arbitrage Fund Growth ₹19.8967
↑ 0.01
₹5,4931.32.86.366.46.2
Nippon India Arbitrage Fund Growth ₹19.8846
↑ 0.01
₹10,5281.22.66.26.26.66.2
UTI Arbitrage Fund Growth ₹26.1248
↑ 0.01
₹3,3091.32.76.26.16.46.2
BNP Paribas Arbitrage Fund  Growth ₹12.058
↑ 0.01
₹6491.32.86.26.2 6.2
Edelweiss Arbitrage Fund Growth ₹14.4092
↑ 0.00
₹3,8701.32.76.26.16.56.2
IDFC Arbitrage Fund Growth ₹24.4493
↑ 0.01
₹11,9441.22.66.26.16.36.2
Kotak Equity Arbitrage Fund Growth ₹27.7097
↑ 0.01
₹17,4861.32.76.26.26.56.1
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jan 20

*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.

1. Aditya Birla Sun Life Arbitrage Fund

(Erstwhile Aditya Birla Sun Life Enhanced Arbitrage Fund)

An Open ended Equity Scheme with an investment objective to generate income by investing predominantly in equity and equity related instruments. Scheme intends to take advantage from the price differentials / mis-pricing prevailing for stock / index in various market segments (Cash & Futures).

Aditya Birla Sun Life Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 24 Jul 09. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 7 in Arbitrage category.  Return for 2019 was 6.2% , 2018 was 6% and 2017 was 5.6% .

Below is the key information for Aditya Birla Sun Life Arbitrage Fund

Aditya Birla Sun Life Arbitrage Fund
Growth
Launch Date 24 Jul 09
NAV (24 Jan 20) ₹19.8967 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹5,493 on 31 Dec 19
Category Hybrid - Arbitrage
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 0.94
Sharpe Ratio 4.78
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-30 Days (0.5%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,760
31 Dec 16₹11,459
31 Dec 17₹12,102
31 Dec 18₹12,830
31 Dec 19₹13,622

Aditya Birla Sun Life Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for Aditya Birla Sun Life Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.5%
3 Month 1.3%
6 Month 2.8%
1 Year 6.3%
3 Year 6%
5 Year 6.4%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 6%
2016 5.6%
2015 6.5%
2014 7.6%
2013 8.3%
2012 9.5%
2011 7.1%
2010 7.1%
2009 5.4%
Fund Manager information for Aditya Birla Sun Life Arbitrage Fund
NameSinceTenure
Lovelish Solanki15 Dec 144.8 Yr.

Data below for Aditya Birla Sun Life Arbitrage Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash93.62%
Debt6.65%
Equity Sector Allocation
SectorValue
Financial Services19.67%
Energy12.15%
Technology6.38%
Basic Materials6.27%
Health Care5.65%
Consumer Defensive4.22%
Consumer Cyclical3.76%
Industrials2.53%
Utility1.55%
Communication Services1.04%
Real Estate0.14%
Debt Sector Allocation
SectorValue
Cash Equivalent88.78%
Corporate11.49%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
64%₹3,505 Cr350,544
↑ 16,886
Future on Reliance Industries Ltd
Derivatives | -
9%-₹486 Cr3,118,000
↑ 3,118,000
Hdfc_(26/12/2019)
Derivatives | -
9%-₹484 Cr2,098,000
↑ 2,098,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE
9%₹484 Cr3,118,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 18 | HDFC
9%₹482 Cr2,098,000
Clearing Corporation Of India Limited
CBLO | -
4%₹221 Cr
Future on Axis Bank Ltd
Derivatives | -
3%-₹183 Cr2,468,400
↑ 2,468,400
Axis Bank Ltd (Financial Services)
Equity, Since 28 Feb 19 | 532215
3%₹182 Cr2,468,400
↑ 272,400
Future on Sun Pharmaceuticals Industries Ltd
Derivatives | -
3%-₹179 Cr3,954,500
↑ 3,954,500
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 28 Feb 15 | SUNPHARMA
3%₹178 Cr3,954,500
↑ 426,800

2. Nippon India Arbitrage Fund

(Erstwhile Reliance Arbitrage Advantage Fund)

The investment objective of the scheme is to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities & money market instruments.

Nippon India Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 14 Oct 10. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.7% since its launch.  Ranked 3 in Arbitrage category.  Return for 2019 was 6.2% , 2018 was 6.8% and 2017 was 5.5% .

Below is the key information for Nippon India Arbitrage Fund

Nippon India Arbitrage Fund
Growth
Launch Date 14 Oct 10
NAV (24 Jan 20) ₹19.8846 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹10,528 on 31 Dec 19
Category Hybrid - Arbitrage
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.05
Sharpe Ratio 4.28
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,805
31 Dec 16₹11,517
31 Dec 17₹12,146
31 Dec 18₹12,969
31 Dec 19₹13,768

Nippon India Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for Nippon India Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.5%
3 Month 1.2%
6 Month 2.6%
1 Year 6.2%
3 Year 6.2%
5 Year 6.6%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 6.8%
2016 5.5%
2015 6.6%
2014 8.1%
2013 8%
2012 9.7%
2011 9.9%
2010 8.3%
2009
Fund Manager information for Nippon India Arbitrage Fund
NameSinceTenure
Kinjal Desai25 May 181.35 Yr.
Anand Gupta12 Sep 181.05 Yr.

Data below for Nippon India Arbitrage Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash94.81%
Debt4.3%
Other1.18%
Equity Sector Allocation
SectorValue
Financial Services16.65%
Basic Materials9.51%
Technology8.54%
Health Care7.48%
Consumer Cyclical7.22%
Consumer Defensive6.34%
Energy5.08%
Industrials3.54%
Utility1.9%
Communication Services1.54%
Real Estate0.13%
Debt Sector Allocation
SectorValue
Cash Equivalent93.21%
Corporate4.93%
Government0.97%
Credit Quality
RatingValue
AA12.75%
AAA87.25%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
68%₹6,975 Cr697,512
↑ 50,411
Hdfc Bank Limited
Certificate of Deposit | -
10%₹1,050 Cr
Triparty Repo
CBLO/Reverse Repo | -
6%₹592 Cr
Future on Tata Consultancy Services Ltd
Derivatives | -
5%-₹549 Cr2,662,000
↑ 2,662,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 18 | TCS
5%₹547 Cr2,662,000
↑ 883,250
Future on Sun Pharmaceuticals Industries Ltd
Derivatives | -
5%-₹460 Cr10,179,400
↑ 10,179,400
Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Apr 15 | SUNPHARMA
4%₹458 Cr10,179,400
↑ 896,500
Axis Bank Limited
Certificate of Deposit | -
4%₹375 Cr
Future on Housing Development Finance Corp Ltd
Derivatives | -
3%-₹356 Cr1,544,000
↑ 1,544,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC
3%₹355 Cr1,544,000
↓ -1,114,500

3. UTI Arbitrage Fund

(Erstwhile UTI SPREAD Fund)

The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity and equity-related securities, derivatives and the balance portion in debt securities. However, there can be no assurance that the investment objective of the scheme will be realised.

UTI Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 22 Jun 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.3% since its launch.  Ranked 8 in Arbitrage category.  Return for 2019 was 6.2% , 2018 was 6.2% and 2017 was 5.7% .

Below is the key information for UTI Arbitrage Fund

UTI Arbitrage Fund
Growth
Launch Date 22 Jun 06
NAV (24 Jan 20) ₹26.1248 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹3,309 on 31 Dec 19
Category Hybrid - Arbitrage
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.78
Sharpe Ratio 4.14
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-30 Days (0.5%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,762
31 Dec 16₹11,457
31 Dec 17₹12,107
31 Dec 18₹12,854
31 Dec 19₹13,647

UTI Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for UTI Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.5%
3 Month 1.3%
6 Month 2.7%
1 Year 6.2%
3 Year 6.1%
5 Year 6.4%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 6.2%
2016 5.7%
2015 6.5%
2014 7.6%
2013 8.1%
2012 7.7%
2011 8.7%
2010 8.4%
2009 4.8%
Fund Manager information for UTI Arbitrage Fund
NameSinceTenure
Amit Sharma2 Jul 181.41 Yr.
Rajeev Gupta2 Jul 181.41 Yr.

Data below for UTI Arbitrage Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash96.49%
Equity0.01%
Debt3.5%
Equity Sector Allocation
SectorValue
Financial Services13.73%
Technology10.28%
Consumer Cyclical9.28%
Basic Materials8.81%
Consumer Defensive7.11%
Health Care5.4%
Energy5.32%
Industrials4.42%
Utility0.81%
Communication Services0.31%
Debt Sector Allocation
SectorValue
Cash Equivalent83.18%
Corporate15.31%
Government1.49%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
66%₹2,131 Cr213,117
↑ 20,129
Future on HDFC Bank Ltd
Derivatives | -
5%-₹170 Cr
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Sep 18 | HDFC
5%₹157 Cr682,500
↑ 70,500
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 18 | TCS
5%₹151 Cr736,750
↑ 591,250
Future on Tata Consultancy Services Ltd
Derivatives | -
5%-₹151 Cr
Punjab National Bank Std - 366 Daysmargin Deposit
Net Current Assets | -
4%₹127 Cr00
Future on Reliance Industries Ltd
Derivatives | -
4%-₹122 Cr
Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE
4%₹122 Cr783,500
↓ -82,500
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Sep 19 | MARUTI
3%₹108 Cr149,475
↑ 137,475
Future on Maruti Suzuki India Ltd
Derivatives | -
3%-₹108 Cr

4. BNP Paribas Arbitrage Fund 

(Erstwhile BNP Paribas Enhanced Arbitrage Fund)

The primary investment objective of the scheme is to generate income and capital appreciation by investing in a combination of diversified portfolio of equity and equity related instruments, including use of equity derivatives strategies and arbitrage opportunities with exposure in debt and fixed income instruments. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme does not guarantee/indicate any returns

BNP Paribas Arbitrage Fund  is a Hybrid - Arbitrage fund was launched on 28 Dec 16. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 6.3% since its launch.  Return for 2019 was 6.2% , 2018 was 6% and 2017 was 6.4% .

Below is the key information for BNP Paribas Arbitrage Fund 

BNP Paribas Arbitrage Fund 
Growth
Launch Date 28 Dec 16
NAV (24 Jan 20) ₹12.058 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹649 on 31 Dec 19
Category Hybrid - Arbitrage
AMC BNP Paribas Asset Mgmt India Pvt. Ltd
Rating Not Rated
Risk Moderately High
Expense Ratio 1.12
Sharpe Ratio 4.29
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 16₹10,000
31 Dec 17₹10,643
31 Dec 18₹11,282
31 Dec 19₹11,983

BNP Paribas Arbitrage Fund  SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for BNP Paribas Arbitrage Fund 

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.4%
3 Month 1.3%
6 Month 2.8%
1 Year 6.2%
3 Year 6.2%
5 Year
10 Year
15 Year
Since launch 6.3%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 6%
2016 6.4%
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for BNP Paribas Arbitrage Fund 
NameSinceTenure
Karthikraj Lakshmanan28 Dec 162.92 Yr.
Mayank Prakash28 Dec 162.92 Yr.

Data below for BNP Paribas Arbitrage Fund  as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash100.27%
Equity Sector Allocation
SectorValue
Basic Materials11.9%
Financial Services11.1%
Industrials7.7%
Consumer Cyclical7.19%
Consumer Defensive7.12%
Technology5.72%
Health Care4.63%
Utility4.26%
Energy3.47%
Communication Services2.58%
Real Estate0.13%
Debt Sector Allocation
SectorValue
Cash Equivalent100.27%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Receivables / (Payables)
Net Current Assets | -
72%₹468 Cr
Treps
CBLO/Reverse Repo | -
7%₹48 Cr
91 Days Deposit With Icici Bank Ltd
Certificate of Deposit | -
5%₹35 Cr349,500,000
↑ 349,500,000
91 Days Deposit With Hdfc Bank Ltd
Certificate of Deposit | -
3%₹21 Cr210,000,000
↑ 210,000,000
Future on GMR Infrastructure Ltd
Derivatives | -
3%-₹21 Cr9,405,000
↑ 9,405,000
GMR Infrastructure Ltd (Industrials)
Equity, Since 31 Aug 19 | 532754
3%₹21 Cr9,405,000
↑ 9,135,000
Future on Bajaj Finance Ltd
Derivatives | -
3%-₹18 Cr44,250
↑ 44,250
Bajaj Finance Ltd (Financial Services)
Equity, Since 31 Oct 19 | 500034
3%₹18 Cr44,250
↑ 5,250
Ujjivan Financial Ser Ltd Fut 26-Dec-19
Derivatives | -
3%-₹18 Cr528,000
↑ 528,000
Ujjivan Financial Services Limited
Equity, Since 31 Oct 19 | -
3%₹18 Cr528,000
↑ 528,000

5. Edelweiss Arbitrage Fund

The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized.

Edelweiss Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 27 Jun 14. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 1 in Arbitrage category.  Return for 2019 was 6.2% , 2018 was 6.1% and 2017 was 5.8% .

Below is the key information for Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund
Growth
Launch Date 27 Jun 14
NAV (24 Jan 20) ₹14.4092 ↑ 0.00   (0.03 %)
Net Assets (Cr) ₹3,870 on 31 Dec 19
Category Hybrid - Arbitrage
AMC Edelweiss Asset Management Limited
Rating
Risk Moderately Low
Expense Ratio 1.12
Sharpe Ratio 4.67
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-30 Days (0.25%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,796
31 Dec 16₹11,515
31 Dec 17₹12,187
31 Dec 18₹12,930
31 Dec 19₹13,731

Edelweiss Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for Edelweiss Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.5%
3 Month 1.3%
6 Month 2.7%
1 Year 6.2%
3 Year 6.1%
5 Year 6.5%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 6.1%
2016 5.8%
2015 6.7%
2014 8%
2013
2012
2011
2010
2009
Fund Manager information for Edelweiss Arbitrage Fund
NameSinceTenure
Dhawal Dalal22 Dec 162.94 Yr.
Bhavesh Jain27 Jun 145.43 Yr.

Data below for Edelweiss Arbitrage Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash99.52%
Debt0.78%
Equity Sector Allocation
SectorValue
Financial Services17.68%
Energy11.84%
Basic Materials9.78%
Consumer Cyclical5.29%
Industrials5.26%
Health Care4.66%
Technology4.55%
Consumer Defensive3.85%
Utility3.2%
Communication Services2.94%
Real Estate0%
Debt Sector Allocation
SectorValue
Cash Equivalent89.74%
Corporate8.65%
Government1.91%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
69%₹2,693 Cr269,258
↑ 13,929
Future on Reliance Industries Ltd
Derivatives | -
8%-₹324 Cr2,080,000
↑ 2,080,000
Future on Housing Development Finance Corp Ltd
Derivatives | -
8%-₹324 Cr1,403,000
↑ 1,403,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE
8%₹323 Cr2,080,000
↑ 137,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Aug 18 | HDFC
8%₹322 Cr1,403,000
↑ 3,500
Future on Axis Bank Ltd
Derivatives | -
3%-₹125 Cr1,678,800
↑ 1,678,800
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 19 | 532215
3%₹124 Cr1,678,800
↓ -116,400
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -
3%₹121 Cr12,500,000
Future on ITC Ltd.
Derivatives | -
3%-₹114 Cr4,612,800
↑ 4,612,800
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 18 | ITC
3%₹114 Cr4,612,800
↑ 1,017,600

6. IDFC Arbitrage Fund

The investment objective of the Scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunity in the cash and the derivative segments of the equity markets and the arbitrage opportunity available within the derivative segments and by investing the balance in debt and money market instruments. However there is no assurance that the investment objective of the scheme will be realized.

IDFC Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 21 Dec 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.1% since its launch.  Ranked 17 in Arbitrage category.  Return for 2019 was 6.2% , 2018 was 6.3% and 2017 was 5.5% .

Below is the key information for IDFC Arbitrage Fund

IDFC Arbitrage Fund
Growth
Launch Date 21 Dec 06
NAV (24 Jan 20) ₹24.4493 ↑ 0.01   (0.05 %)
Net Assets (Cr) ₹11,944 on 31 Dec 19
Category Hybrid - Arbitrage
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.04
Sharpe Ratio 4.66
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 1,000
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,738
31 Dec 16₹11,417
31 Dec 17₹12,050
31 Dec 18₹12,805
31 Dec 19₹13,592

IDFC Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
Invest Now

Returns for IDFC Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.5%
3 Month 1.2%
6 Month 2.6%
1 Year 6.2%
3 Year 6.1%
5 Year 6.3%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 6.3%
2016 5.5%
2015 6.3%
2014 7.4%
2013 8.5%
2012 9.2%
2011 9.3%
2010 7.9%
2009 5.6%
Fund Manager information for IDFC Arbitrage Fund
NameSinceTenure
Arpit Kapoor1 Mar 172.25 Yr.
Yogik Pitti27 Jun 135.93 Yr.
Harshal Joshi20 Oct 162.61 Yr.

Data below for IDFC Arbitrage Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash88.88%
Debt11.41%
Equity Sector Allocation
SectorValue
Financial Services20.04%
Basic Materials9.51%
Technology6.87%
Energy6.81%
Industrials6.37%
Consumer Cyclical5.59%
Consumer Defensive5.25%
Health Care3.81%
Utility2.9%
Communication Services1.83%
Real Estate0.05%
Debt Sector Allocation
SectorValue
Cash Equivalent88.55%
Corporate11.32%
Government0.42%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
70%₹8,267 Cr826,718
↑ 181,887
Axis Bank Limited
Net Current Assets | -
10%₹1,189 Cr
Future on Bajaj Finance Ltd
Derivatives | -
4%-₹468 Cr1,142,250
↑ 1,142,250
Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Apr 19 | 500034
4%₹465 Cr1,142,250
↑ 697,250
Future on Reliance Industries Ltd
Derivatives | -
4%-₹443 Cr2,844,000
↑ 2,844,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE
4%₹441 Cr2,844,000
↑ 18,000
Hdfc Bank Limited
Net Current Assets | -
3%₹388 Cr
Future on Axis Bank Ltd
Derivatives | -
3%-₹371 Cr4,993,200
↑ 4,993,200
Axis Bank Ltd (Financial Services)
Equity, Since 31 Mar 19 | 532215
3%₹369 Cr4,993,200
↑ 1,044,000
Future on Housing Development Finance Corp Ltd
Derivatives | -
3%-₹356 Cr1,542,250
↑ 1,542,250

7. Kotak Equity Arbitrage Fund

The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized

Kotak Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 29 Sep 05. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 2 in Arbitrage category.  Return for 2019 was 6.1% , 2018 was 6.3% and 2017 was 5.8% .

Below is the key information for Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund
Growth
Launch Date 29 Sep 05
NAV (24 Jan 20) ₹27.7097 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹17,486 on 31 Dec 19
Category Hybrid - Arbitrage
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.68
Sharpe Ratio 4.32
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-30 Days (0.25%),30 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,750
31 Dec 16₹11,465
31 Dec 17₹12,135
31 Dec 18₹12,902
31 Dec 19₹13,684

Kotak Equity Arbitrage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹357,992.
Net Profit of ₹57,992
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Returns for Kotak Equity Arbitrage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20

DurationReturns
1 Month 0.5%
3 Month 1.3%
6 Month 2.7%
1 Year 6.2%
3 Year 6.2%
5 Year 6.5%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.1%
2017 6.3%
2016 5.8%
2015 6.7%
2014 7.5%
2013 9%
2012 9.2%
2011 9.6%
2010 7.5%
2009 6.3%
Fund Manager information for Kotak Equity Arbitrage Fund
NameSinceTenure
Hiten Shah3 Oct 190.16 Yr.
Rukun Tarachandani9 May 190.56 Yr.

Data below for Kotak Equity Arbitrage Fund as on 31 Dec 19

Asset Allocation
Asset ClassValue
Cash96.88%
Debt3.38%
Equity Sector Allocation
SectorValue
Financial Services16.16%
Energy9.55%
Basic Materials8.93%
Consumer Defensive7.81%
Consumer Cyclical5.06%
Technology4.97%
Health Care4.17%
Industrials3.96%
Utility2.99%
Communication Services1.8%
Real Estate0.06%
Debt Sector Allocation
SectorValue
Cash Equivalent86.43%
Corporate13.2%
Government0.63%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
66%₹11,441 Cr1,144,145
↑ 67,149
Kotak Liquid Dir Gr
Investment Fund | -
9%₹1,553 Cr3,937,659
↑ 1,515,250
Hdfc Bank Ltd.
Net Current Assets | -
9%₹1,488 Cr
Reliance Industries Ltd.-DEC2019
Derivatives | -
6%-₹964 Cr6,184,500
↑ 6,184,500
Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE
6%₹959 Cr6,184,500
↑ 816,000
Axis Bank Ltd.
Net Current Assets | -
5%₹945 Cr
HDFC Ltd.-DEC2019
Derivatives | -
5%-₹861 Cr3,730,250
↑ 3,730,250
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Sep 17 | HDFC
5%₹857 Cr3,730,250
↑ 61,750
ITC Ltd.-DEC2019
Derivatives | -
3%-₹566 Cr22,896,000
↑ 22,896,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 16 | ITC
3%₹564 Cr22,896,000
↑ 2,904,000

Things to consider as an Investor

1. Risk

As trades are carried out on the stock exchange, there’s no counter party risk involved in these funds. Even though the fund manager is buying and selling shares in cash and futures market, there is no risk exposure to equities as is the case with other diversified equity mutual funds. Though the ride looks smooth, do not get too comfortable with these funds. As more people start trading into arbitrage funds, there will be not many arbitrage opportunities available. The spread between cash and future market prices will erode, leaving little for the arbitrage focused investors.

2. Return

Arbitrage Funds may be a good opportunity to make reasonable returns for those who can understand it and then make the most of it. The fund manager tries to generate an Alpha using price differentials in markets. Historically, arbitrage funds have been found to give returns in the range of 7%-8% over a period of 5-10 years. If you are looking to earn moderate returns via a portfolio which has a perfect blend of debt and equity in a volatile market, arbitrage funds may be your thing. However, you need to keep one thing in mind that there are no guaranteed returns in arbitrage funds.

3. Cost

Cost becomes an important consideration while evaluating arbitrage funds. These funds charge an annual fee called expense ratio which is expressed as a percentage of the fund’s assets. It includes fund manager’s fee and fund management charges. Due to frequent trading, arbitrage funds would incur huge transaction costs and has a high turnover ratio. Additionally, the fund may levy exit loads for a period of 30 to 60 days to discourage investors from exiting early. All these costs may lead to increase in the expense ratio of the fund. A high expense ratio puts a downward pressure on your take-home returns.

4. Investment Horizon

Arbitrage funds may be suitable for investors having a short to medium term horizon of 3 to 5 years. As these funds charge exit loads, you may consider them only when you are ready to stay invested for a period of at least 3-6 months. At the same time, you need to understand that fund returns are highly dependent on the existence of high volatility. So, choosing a lump sum investment would make sense over Systematic investment plan (SIPs). In absence of volatility, liquid funds may give better returns than arbitrage funds over the same investment horizon. Hence, you need to keep the overall market scenario in mind while choosing arbitrage funds.

5. Financial Goals

If you have short to medium term Financial goals, then arbitrage funds are your thing. Instead of a regular savings bank account, you may use these funds to park excess funds in order to create an emergency fund and earn higher returns on them. In case you were already invested in riskier havens equity funds, then you may begin a Systematic Transfer Plan (STP) from the equity funds to a less risky haven like arbitrage funds as you approach completion of the financial goal. This would reduce your portfolio’s overall risk profile but at the same time reduce the returns also. You cannot expect to earn double-digit returns in arbitrage funds.

How to Invest in Arbitrage Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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