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7 Best Performing Arbitrage Mutual Funds for 2022 | fincash.com

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7 Best Arbitrage Mutual Funds 2022

Updated on August 15, 2022 , 30276 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 2022 - 2023

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2021 (%)
SBI Arbitrage Opportunities Fund Growth ₹27.6538
↑ 0.01
₹8,3750.81.63.73.84.84
Invesco India Arbitrage Fund Growth ₹26.0924
↓ 0.00
₹1,0950.91.93.74.14.93.5
Axis Arbitrage Fund  Growth ₹15.4243
↑ 0.01
₹5,3030.61.53.644.83.8
Kotak Equity Arbitrage Fund Growth ₹30.6186
↑ 0.01
₹25,7890.81.63.54.254
Edelweiss Arbitrage Fund Growth ₹15.9115
↑ 0.00
₹6,9930.71.53.44.253.8
Nippon India Arbitrage Fund Growth ₹21.8959
↑ 0.01
₹10,8090.71.43.3453.8
ICICI Prudential Equity Arbitrage Fund Growth ₹28.1701
↑ 0.01
₹13,4000.71.43.244.93.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Aug 22

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

1. SBI Arbitrage Opportunities Fund

To provide capital appreciation and regular income for unitholders by identifying profitable arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market instruments.

SBI Arbitrage Opportunities Fund is a Hybrid - Arbitrage fund was launched on 3 Nov 06. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.7% since its launch.  Ranked 15 in Arbitrage category.  Return for 2021 was 4% , 2020 was 3.5% and 2019 was 6% .

Below is the key information for SBI Arbitrage Opportunities Fund

SBI Arbitrage Opportunities Fund
Growth
Launch Date 3 Nov 06
NAV (17 Aug 22) ₹27.6538 ↑ 0.01   (0.04 %)
Net Assets (Cr) ₹8,375 on 30 Jun 22
Category Hybrid - Arbitrage
AMC SBI Funds Management Private Limited
Rating
Risk Moderately Low
Expense Ratio 0.9
Sharpe Ratio 0.49
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Months (0.5%),1 Months and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,617
31 Jul 19₹11,303
31 Jul 20₹11,789
31 Jul 21₹12,211
31 Jul 22₹12,664

SBI Arbitrage Opportunities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for SBI Arbitrage Opportunities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22

DurationReturns
1 Month 0.3%
3 Month 0.8%
6 Month 1.6%
1 Year 3.7%
3 Year 3.8%
5 Year 4.8%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2021 4%
2020 3.5%
2019 6%
2018 6.2%
2017 5.3%
2016 6.4%
2015 7.3%
2014 8.6%
2013 9%
2012 9.1%
Fund Manager information for SBI Arbitrage Opportunities Fund
NameSinceTenure
Neeraj Kumar5 Oct 129.82 Yr.
Arun R.1 Jul 211.08 Yr.

Data below for SBI Arbitrage Opportunities Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash97.42%
Equity0.11%
Debt2.47%
Equity Sector Allocation
SectorValue
Financial Services23.1%
Basic Materials9.86%
Industrials7.99%
Energy6.47%
Technology3.89%
Consumer Cyclical3.45%
Consumer Defensive3.12%
Communication Services2.85%
Utility2.05%
Health Care1.82%
Real Estate0.93%
Debt Sector Allocation
SectorValue
Cash Equivalent93.4%
Corporate3.84%
Government2.65%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
SBI Savings Dir Gr
Investment Fund | -
13%₹1,109 Cr309,686,238
↑ 55,992,318
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
5%₹415 Cr3,077,800
↓ -159,500
Future on HDFC Bank Ltd
Derivatives | -
5%-₹414 Cr3,077,800
↓ -159,500
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 30 Jun 18 | ADANIPORTS
5%₹410 Cr6,095,000
↑ 108,750
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
5%-₹408 Cr6,095,000
↑ 108,750
182 Dtb 08092022
Sovereign Bonds | -
4%₹337 Cr34,000,000
↑ 29,000,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 18 | HDFC
4%₹331 Cr1,524,000
↑ 394,800
Future on Housing Development Finance Corp Ltd
Derivatives | -
4%-₹330 Cr1,524,000
↑ 394,800
Future on Adani Enterprises Ltd
Derivatives | -
4%-₹307 Cr1,397,000
↓ -12,000
Adani Enterprises Ltd (Energy)
Equity, Since 30 Jun 21 | 512599
4%₹306 Cr1,397,000
↓ -12,000

2. Invesco India Arbitrage Fund

The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments.

Invesco India Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Apr 07. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6.5% since its launch.  Ranked 9 in Arbitrage category.  Return for 2021 was 3.5% , 2020 was 4.3% and 2019 was 5.9% .

Below is the key information for Invesco India Arbitrage Fund

Invesco India Arbitrage Fund
Growth
Launch Date 30 Apr 07
NAV (17 Aug 22) ₹26.0924 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹1,095 on 30 Jun 22
Category Hybrid - Arbitrage
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderately Low
Expense Ratio 0.73
Sharpe Ratio 0.4
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-15 Days (0.5%),15 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,607
31 Jul 19₹11,252
31 Jul 20₹11,817
31 Jul 21₹12,253
31 Jul 22₹12,704

Invesco 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 ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for Invesco 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 17 Aug 22

DurationReturns
1 Month 0.3%
3 Month 0.9%
6 Month 1.9%
1 Year 3.7%
3 Year 4.1%
5 Year 4.9%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.5%
2020 4.3%
2019 5.9%
2018 5.9%
2017 5.5%
2016 6.5%
2015 7.6%
2014 8.3%
2013 7.9%
2012 9.1%
Fund Manager information for Invesco India Arbitrage Fund
NameSinceTenure
Deepak Gupta11 Nov 210.72 Yr.

Data below for Invesco India Arbitrage Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash95.93%
Equity0.03%
Debt4.03%
Equity Sector Allocation
SectorValue
Financial Services24.85%
Basic Materials7.67%
Technology6.56%
Communication Services5.83%
Industrials5.56%
Consumer Cyclical5.23%
Energy3.09%
Consumer Defensive3.03%
Health Care1.28%
Utility0.93%
Real Estate0.24%
Debt Sector Allocation
SectorValue
Cash Equivalent93.42%
Government4.78%
Corporate1.76%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Invesco India Liquid Dir Gr
Investment Fund | -
18%₹201 Cr682,164
↓ -119,682
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 May 22 | ADANIPORTS
4%₹40 Cr601,250
↑ 577,500
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
4%-₹40 Cr601,250
↑ 577,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 19 | HDFC
4%₹39 Cr179,100
↑ 144,300
Future on Housing Development Finance Corp Ltd
Derivatives | -
4%-₹39 Cr179,100
↑ 144,300
Future on Multi Commodity Exchange of India Ltd
Derivatives | -
3%-₹35 Cr269,200
↓ -14,300
Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 30 Nov 21 | MCX
3%₹35 Cr269,200
↓ -14,300
HCL Technologies Ltd (Technology)
Equity, Since 31 Oct 21 | HCLTECH
3%₹35 Cr358,400
↑ 168,000
Future on HCL Technologies Ltd
Derivatives | -
3%-₹35 Cr358,400
↑ 168,000
IDFC Ltd (Financial Services)
Equity, Since 31 Dec 21 | IDFC
2%₹26 Cr5,230,000
↑ 310,000

3. Axis Arbitrage Fund 

(Erstwhile Axis Enhanced Arbitrage Fund)

To generate income through low volatility absolute return strategies that take advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.

Axis Arbitrage Fund  is a Hybrid - Arbitrage fund was launched on 14 Aug 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 5.6% since its launch.  Ranked 12 in Arbitrage category.  Return for 2021 was 3.8% , 2020 was 4.1% and 2019 was 5.8% .

Below is the key information for Axis Arbitrage Fund 

Axis Arbitrage Fund 
Growth
Launch Date 14 Aug 14
NAV (17 Aug 22) ₹15.4243 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹5,303 on 30 Jun 22
Category Hybrid - Arbitrage
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.05
Sharpe Ratio 0.53
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)

Growth of 10,000 investment over the years.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,596
31 Jul 19₹11,271
31 Jul 20₹11,816
31 Jul 21₹12,246
31 Jul 22₹12,683

Axis 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 ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for Axis 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 17 Aug 22

DurationReturns
1 Month 0.2%
3 Month 0.6%
6 Month 1.5%
1 Year 3.6%
3 Year 4%
5 Year 4.8%
10 Year
15 Year
Since launch 5.6%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.8%
2020 4.1%
2019 5.8%
2018 6.1%
2017 5.2%
2016 6.9%
2015 7.3%
2014
2013
2012
Fund Manager information for Axis Arbitrage Fund 
NameSinceTenure
Devang Shah14 Aug 147.97 Yr.
Sachin Jain9 Nov 210.72 Yr.
Ashish Naik4 May 220.24 Yr.

Data below for Axis Arbitrage Fund  as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash95.98%
Equity0.15%
Debt3.87%
Equity Sector Allocation
SectorValue
Financial Services19.27%
Basic Materials11.7%
Technology6.41%
Energy5.73%
Consumer Defensive5.19%
Industrials4.07%
Communication Services3.57%
Health Care3.53%
Consumer Cyclical2.37%
Real Estate1.89%
Utility1.79%
Debt Sector Allocation
SectorValue
Cash Equivalent89.86%
Corporate6.58%
Government3.41%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Money Market Dir Gr
Investment Fund | -
8%₹423 Cr3,647,672
↓ -862,522
Axis Ultra Short Term Fund Dir Gr
Investment Fund | -
7%₹390 Cr309,869,162
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 20 | RELIANCE
5%₹276 Cr1,062,000
Future on Reliance Industries Ltd
Derivatives | -
5%-₹275 Cr1,062,000
182 DTB 14072022
Sovereign Bonds | -
5%₹250 Cr25,000,000
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
4%₹201 Cr1,493,250
Future on HDFC Bank Ltd
Derivatives | -
4%-₹201 Cr1,493,250
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC
3%₹177 Cr815,400
↑ 40,500
Future on Housing Development Finance Corp Ltd
Derivatives | -
3%-₹177 Cr815,400
↑ 40,500
Axis Liquid Dir Gr
Investment Fund | -
3%₹170 Cr710,947

4. 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 6.9% since its launch.  Ranked 2 in Arbitrage category.  Return for 2021 was 4% , 2020 was 4.3% and 2019 was 6.1% .

Below is the key information for Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund
Growth
Launch Date 29 Sep 05
NAV (17 Aug 22) ₹30.6186 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹25,789 on 30 Jun 22
Category Hybrid - Arbitrage
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.68
Sharpe Ratio 0.25
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 Jul 17₹10,000
31 Jul 18₹10,620
31 Jul 19₹11,323
31 Jul 20₹11,873
31 Jul 21₹12,365
31 Jul 22₹12,796

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 ₹349,120.
Net Profit of ₹49,120
Invest Now

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 17 Aug 22

DurationReturns
1 Month 0.3%
3 Month 0.8%
6 Month 1.6%
1 Year 3.5%
3 Year 4.2%
5 Year 5%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2021 4%
2020 4.3%
2019 6.1%
2018 6.3%
2017 5.8%
2016 6.7%
2015 7.5%
2014 9%
2013 9.2%
2012 9.6%
Fund Manager information for Kotak Equity Arbitrage Fund
NameSinceTenure
Hiten Shah3 Oct 192.83 Yr.

Data below for Kotak Equity Arbitrage Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash95.62%
Equity0.13%
Debt4.24%
Equity Sector Allocation
SectorValue
Financial Services17.87%
Basic Materials11.1%
Technology7.93%
Consumer Cyclical6.28%
Consumer Defensive5.49%
Industrials4.9%
Energy4.39%
Health Care3.82%
Utility2.61%
Communication Services1.96%
Real Estate0.89%
Debt Sector Allocation
SectorValue
Cash Equivalent89.24%
Corporate5.58%
Government5.05%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Money Market Dir Gr
Investment Fund | -
11%₹2,759 Cr7,553,686
Kotak Liquid Dir Gr
Investment Fund | -
7%₹1,806 Cr4,155,222
↓ -3,477,705
Kotak Savings Fund Dir Gr
Investment Fund | -
5%₹1,303 Cr358,715,116
↑ 358,715,116
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK
3%₹858 Cr6,362,400
↓ -1,293,600
HDFC Bank Ltd.-JUL2022
Derivatives | -
3%-₹856 Cr6,362,400
↑ 6,362,400
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Sep 17 | HDFC
3%₹795 Cr3,663,300
↑ 1,494,300
HDFC Ltd.-JUL2022
Derivatives | -
3%-₹794 Cr3,663,300
↑ 3,663,300
Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE
2%₹531 Cr2,044,500
↑ 709,750
Reliance Industries Ltd.-JUL2022
Derivatives | -
2%-₹530 Cr2,044,500
↑ 1,988,750
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Jun 17 | MARUTI
2%₹523 Cr616,900
↑ 233,700

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 5.9% since its launch.  Ranked 1 in Arbitrage category.  Return for 2021 was 3.8% , 2020 was 4.5% and 2019 was 6.2% .

Below is the key information for Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund
Growth
Launch Date 27 Jun 14
NAV (17 Aug 22) ₹15.9115 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹6,993 on 30 Jun 22
Category Hybrid - Arbitrage
AMC Edelweiss Asset Management Limited
Rating
Risk Moderately Low
Expense Ratio 1.09
Sharpe Ratio 0.06
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 Jul 17₹10,000
31 Jul 18₹10,615
31 Jul 19₹11,307
31 Jul 20₹11,893
31 Jul 21₹12,358
31 Jul 22₹12,777

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 ₹340,450.
Net Profit of ₹40,450
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 17 Aug 22

DurationReturns
1 Month 0.2%
3 Month 0.7%
6 Month 1.5%
1 Year 3.4%
3 Year 4.2%
5 Year 5%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.8%
2020 4.5%
2019 6.2%
2018 6.1%
2017 5.8%
2016 6.7%
2015 8%
2014
2013
2012
Fund Manager information for Edelweiss Arbitrage Fund
NameSinceTenure
Dhawal Dalal22 Dec 165.61 Yr.
Bhavesh Jain27 Jun 148.1 Yr.

Data below for Edelweiss Arbitrage Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash92.77%
Equity0.1%
Debt7.14%
Equity Sector Allocation
SectorValue
Financial Services19.82%
Basic Materials10.47%
Industrials6.23%
Communication Services6.21%
Energy5.47%
Technology3.7%
Consumer Cyclical3.16%
Health Care2.76%
Utility1.28%
Consumer Defensive1.27%
Real Estate0.52%
Debt Sector Allocation
SectorValue
Cash Equivalent89.25%
Government7.14%
Corporate3.52%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFC
4%₹277 Cr1,275,900
↑ 185,400
Future on Housing Development Finance Corp Ltd
Derivatives | -
4%-₹277 Cr1,275,900
↑ 185,400
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK
4%₹276 Cr2,043,800
↓ -267,300
Future on HDFC Bank Ltd
Derivatives | -
4%-₹275 Cr2,043,800
↓ -267,300
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Nov 17 | BHARTIARTL
4%₹263 Cr3,843,700
↑ 892,050
Future on Bharti Airtel Ltd
Derivatives | -
4%-₹263 Cr3,843,700
↑ 892,050
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 30 Sep 19 | ADANIPORTS
3%₹232 Cr3,458,750
↑ 993,750
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
3%-₹231 Cr3,458,750
↑ 993,750
Future on Adani Enterprises Ltd
Derivatives | -
3%-₹204 Cr930,500
↑ 171,500
Adani Enterprises Ltd (Energy)
Equity, Since 30 Sep 18 | 512599
3%₹204 Cr930,500
↑ 171,500

6. 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 6.8% since its launch.  Ranked 3 in Arbitrage category.  Return for 2021 was 3.8% , 2020 was 4.3% and 2019 was 6.2% .

Below is the key information for Nippon India Arbitrage Fund

Nippon India Arbitrage Fund
Growth
Launch Date 14 Oct 10
NAV (17 Aug 22) ₹21.8959 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹10,809 on 30 Jun 22
Category Hybrid - Arbitrage
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.02
Sharpe Ratio -0.31
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 Jul 17₹10,000
31 Jul 18₹10,649
31 Jul 19₹11,362
31 Jul 20₹11,918
31 Jul 21₹12,387
31 Jul 22₹12,792

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 ₹349,120.
Net Profit of ₹49,120
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 17 Aug 22

DurationReturns
1 Month 0.3%
3 Month 0.7%
6 Month 1.4%
1 Year 3.3%
3 Year 4%
5 Year 5%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.8%
2020 4.3%
2019 6.2%
2018 6.8%
2017 5.5%
2016 6.6%
2015 8.1%
2014 8%
2013 9.7%
2012 9.9%
Fund Manager information for Nippon India Arbitrage Fund
NameSinceTenure
Anju Chhajer1 Feb 202.5 Yr.
Kinjal Desai25 May 184.19 Yr.
Anand Gupta12 Sep 183.89 Yr.

Data below for Nippon India Arbitrage Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash86.38%
Equity0.09%
Debt13.53%
Equity Sector Allocation
SectorValue
Financial Services19.75%
Basic Materials9.42%
Technology7.46%
Consumer Cyclical6.47%
Industrials6.04%
Consumer Defensive4.85%
Energy4.48%
Health Care2.58%
Communication Services1.75%
Utility1.45%
Real Estate0.67%
Debt Sector Allocation
SectorValue
Cash Equivalent81.85%
Government11.98%
Corporate6.08%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India Money Market Dir Gr
Investment Fund | -
7%₹804 Cr2,377,640
Nippon India Liquid Dir Gr
Investment Fund | -
4%₹450 Cr855,533
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 22 | HDFCBANK
3%₹377 Cr2,798,950
↓ -1,104,950
Future on HDFC Bank Ltd
Derivatives | -
3%-₹377 Cr2,798,950
↓ -1,104,950
Nippon India Low Duration Dir Gr
Investment Fund | -
3%₹360 Cr1,131,266
Future on Adani Enterprises Ltd
Derivatives | -
3%-₹311 Cr1,417,500
↓ -97,000
Adani Enterprises Ltd (Energy)
Equity, Since 31 Aug 20 | 512599
3%₹311 Cr1,417,500
↓ -97,000
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Oct 19 | ADANIPORTS
3%₹296 Cr4,397,500
↑ 156,250
182 Dtb 10112022
Sovereign Bonds | -
3%₹294 Cr30,000,000
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
3%-₹294 Cr4,397,500
↑ 156,250

7. ICICI Prudential Equity Arbitrage Fund

The investment objective of Income Optimiser Plan under the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio.

ICICI Prudential Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Dec 06. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.9% since its launch.  Ranked 4 in Arbitrage category.  Return for 2021 was 3.9% , 2020 was 4.3% and 2019 was 5.9% .

Below is the key information for ICICI Prudential Equity Arbitrage Fund

ICICI Prudential Equity Arbitrage Fund
Growth
Launch Date 30 Dec 06
NAV (17 Aug 22) ₹28.1701 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹13,400 on 30 Jun 22
Category Hybrid - Arbitrage
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.97
Sharpe Ratio -0.47
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
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 Jul 17₹10,000
31 Jul 18₹10,600
31 Jul 19₹11,287
31 Jul 20₹11,829
31 Jul 21₹12,300
31 Jul 22₹12,693

ICICI Prudential 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 ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for ICICI Prudential 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 17 Aug 22

DurationReturns
1 Month 0.3%
3 Month 0.7%
6 Month 1.4%
1 Year 3.2%
3 Year 4%
5 Year 4.9%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.9%
2020 4.3%
2019 5.9%
2018 6.2%
2017 5.5%
2016 6.8%
2015 7.6%
2014 8.6%
2013 9.8%
2012 10.1%
Fund Manager information for ICICI Prudential Equity Arbitrage Fund
NameSinceTenure
Kayzad Eghlim1 Feb 1111.5 Yr.
Rohan Maru29 Dec 201.59 Yr.
Nikhil Kabra29 Dec 201.59 Yr.
Priyanka Khandelwal1 Jun 202.17 Yr.

Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash98.04%
Equity0.12%
Debt1.84%
Equity Sector Allocation
SectorValue
Financial Services15.42%
Basic Materials10.05%
Energy7.42%
Technology6.45%
Consumer Cyclical6.45%
Industrials6.08%
Health Care3.95%
Consumer Defensive3.79%
Communication Services2.12%
Utility1.78%
Real Estate1.32%
Debt Sector Allocation
SectorValue
Cash Equivalent97.3%
Government1.84%
Corporate0.74%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
5%₹649 Cr2,498,500
↑ 132,500
Future on Reliance Industries Ltd
Derivatives | -
5%-₹648 Cr2,498,500
↑ 132,500
91 Dtb 18082022
Sovereign Bonds | -
4%₹497 Cr50,000,000
182 Dtb 08092022
Sovereign Bonds | -
3%₹396 Cr40,000,000
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Aug 19 | ADANIPORTS
3%₹368 Cr5,482,500
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
3%-₹367 Cr5,482,500
Future on Adani Enterprises Ltd
Derivatives | -
2%-₹320 Cr1,459,500
Adani Enterprises Ltd (Energy)
Equity, Since 30 Nov 19 | 512599
2%₹320 Cr1,459,500
182 Dtb 15092022
Sovereign Bonds | -
2%₹297 Cr30,000,000
Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | 532215
2%₹266 Cr4,170,000

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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