fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
fincash number+91-22-62820123
7 Best Performing Arbitrage Mutual Funds for 2019 | fincash.com

Fincash » Mutual Funds » Best Arbitrage Funds

7 Best Arbitrage Mutual Funds 2019

Updated on November 17, 2019 , 6296 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.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Top 7 Arbitrage Mutual Funds 2019 - 2020

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2018 (%)
UTI Arbitrage Fund Growth ₹25.8949
↑ 0.00
₹2,9151.33.16.36.16.56.2
Edelweiss Arbitrage Fund Growth ₹14.2794
↓ 0.00
₹3,8541.33.16.36.16.76.1
IDFC Arbitrage Fund Growth ₹24.2377
↑ 0.00
₹10,8911.236.366.46.3
Reliance Arbitrage Fund Growth ₹19.713
↓ 0.00
₹9,4971.236.36.26.76.8
Aditya Birla Sun Life Arbitrage Fund Growth ₹19.7139
↓ 0.00
₹5,1501.33.16.366.56
BNP Paribas Arbitrage Fund  Growth ₹11.95
↑ 0.00
₹6621.336.2 6
Kotak Equity Arbitrage Fund Growth ₹27.4615
↓ 0.00
₹16,1981.336.26.16.66.3
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Nov 19

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

1. 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 7.4% since its launch.  Ranked 8 in Arbitrage category.  Return for 2018 was 6.2% , 2017 was 5.7% and 2016 was 6.5% .

Below is the key information for UTI Arbitrage Fund

UTI Arbitrage Fund
Growth
Launch Date 22 Jun 06
NAV (19 Nov 19) ₹25.8949 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹2,915 on 31 Oct 19
Category Hybrid - Arbitrage
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.78
Sharpe Ratio 4.4
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 Oct 14₹10,000
31 Oct 15₹10,776
31 Oct 16₹11,455
31 Oct 17₹12,121
31 Oct 18₹12,885
31 Oct 19₹13,710

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 19 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.3%
6 Month 3.1%
1 Year 6.3%
3 Year 6.1%
5 Year 6.5%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.2%
2017 5.7%
2016 6.5%
2015 7.6%
2014 8.1%
2013 7.7%
2012 8.7%
2011 8.4%
2010 4.8%
2009 6.4%
Fund Manager information for UTI Arbitrage Fund
NameSinceTenure
Amit Sharma2 Jul 180.58 Yr.
Rajeev Gupta2 Jul 180.58 Yr.

Data below for UTI Arbitrage Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash97.67%
Debt2.33%
Equity Sector Allocation
SectorValue
Financial Services17.99%
Technology10.01%
Consumer Defensive9.31%
Basic Materials7.38%
Energy6.96%
Consumer Cyclical5.41%
Health Care4.6%
Industrials2.42%
Utility1.11%
Communication Services0.85%
Real Estate0.73%
Debt Sector Allocation
SectorValue
Cash Equivalent90.74%
Corporate9.26%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
6,621%₹192,988 Cr19,298,831
↑ 19,115,129
Eq Hdfc Ltd.
Derivatives | -
448%-₹13,058 Cr
Eq Reliance Industries Ltd.
Derivatives | -
435%-₹12,679 Cr
Eq Infosys Ltd.
Derivatives | -
381%-₹11,105 Cr
Eq Larsen & Toubro Ltd.
Derivatives | -
263%-₹7,666 Cr
Eq Hindustan Unilever Ltd.
Derivatives | -
262%-₹7,637 Cr
Eq Bajaj Finance Ltd.
Derivatives | -
257%-₹7,491 Cr
Eq Indus Ind Bank Ltd.
Derivatives | -
222%-₹6,471 Cr
Eq Axis Bank Ltd.
Derivatives | -
217%-₹6,325 Cr
Eq Itc Ltd.
Derivatives | -
217%-₹6,325 Cr

2. 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 2018 was 6.1% , 2017 was 5.8% and 2016 was 6.7% .

Below is the key information for Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund
Growth
Launch Date 27 Jun 14
NAV (19 Nov 19) ₹14.2794 ↓ 0.00   (-0.02 %)
Net Assets (Cr) ₹3,854 on 31 Oct 19
Category Hybrid - Arbitrage
AMC Edelweiss Asset Management Limited
Rating
Risk Moderately Low
Expense Ratio 1.12
Sharpe Ratio 4.7
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 Oct 14₹10,000
31 Oct 15₹10,822
31 Oct 16₹11,539
31 Oct 17₹12,227
31 Oct 18₹12,996
31 Oct 19₹13,822

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 19 Nov 19

DurationReturns
1 Month 0.3%
3 Month 1.3%
6 Month 3.1%
1 Year 6.3%
3 Year 6.1%
5 Year 6.7%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.1%
2017 5.8%
2016 6.7%
2015 8%
2014
2013
2012
2011
2010
2009
Fund Manager information for Edelweiss Arbitrage Fund
NameSinceTenure
Dhawal Dalal22 Dec 162.77 Yr.
Bhavesh Jain27 Jun 145.26 Yr.

Data below for Edelweiss Arbitrage Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash97.8%
Debt2.51%
Equity Sector Allocation
SectorValue
Financial Services20.41%
Technology10.5%
Energy10.39%
Basic Materials6.05%
Health Care4.78%
Consumer Defensive3.96%
Consumer Cyclical3.5%
Industrials3.02%
Utility2.26%
Real Estate1.57%
Communication Services1.05%
Debt Sector Allocation
SectorValue
Cash Equivalent83.44%
Corporate15.23%
Government1.64%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
68%₹2,614 Cr261,384
↑ 9,838
Reliance Industries Ltd.31/10/2019
Derivatives | -
9%-₹358 Cr2,674,500
↑ 2,674,500
Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE
9%₹356 Cr2,674,500
↑ 54,000
Housing Development Finance Corporation Ltd.31/10/2019
Derivatives | -
9%-₹331 Cr1,659,000
↑ 1,659,000
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Aug 18 | HDFC
9%₹328 Cr1,659,000
↑ 502,500
Infosys Ltd (Technology)
Equity, Since 31 Aug 19 | INFY
5%₹187 Cr2,318,400
↑ 1,916,400
Infosys Ltd.31/10/2019
Derivatives | -
5%-₹185 Cr2,318,400
↑ 2,318,400
RELIANCE JIO INFOCOMM LIMITED
Commercial Paper | -
4%₹150 Cr15,000,000
↑ 15,000,000
Tata Consultancy Services Ltd.31/10/2019
Derivatives | -
4%-₹149 Cr709,000
↑ 709,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 18 | TCS
4%₹149 Cr709,000
↑ 387,250

3. 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 2018 was 6.3% , 2017 was 5.5% and 2016 was 6.3% .

Below is the key information for IDFC Arbitrage Fund

IDFC Arbitrage Fund
Growth
Launch Date 21 Dec 06
NAV (19 Nov 19) ₹24.2377 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹10,891 on 31 Oct 19
Category Hybrid - Arbitrage
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 1.04
Sharpe Ratio 5.08
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 Oct 14₹10,000
31 Oct 15₹10,755
31 Oct 16₹11,427
31 Oct 17₹12,077
31 Oct 18₹12,844
31 Oct 19₹13,668

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 19 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.2%
6 Month 3%
1 Year 6.3%
3 Year 6%
5 Year 6.4%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.3%
2017 5.5%
2016 6.3%
2015 7.4%
2014 8.5%
2013 9.2%
2012 9.3%
2011 7.9%
2010 5.6%
2009 3.3%
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 Oct 19

Asset Allocation
Asset ClassValue
Cash89.54%
Debt10.63%
Equity Sector Allocation
SectorValue
Financial Services22.36%
Energy6.64%
Basic Materials6.35%
Technology6.13%
Consumer Defensive4.84%
Industrials3.62%
Consumer Cyclical2.92%
Utility2.62%
Health Care2.48%
Real Estate0.6%
Communication Services0.39%
Debt Sector Allocation
SectorValue
Cash Equivalent86.77%
Corporate11.79%
Government1.78%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
67%₹6,801 Cr680,101
↑ 68,495
Axis Bank Limited
Certificate of Deposit | -
7%₹690 Cr
Hdfc Bank Limited
Certificate of Deposit | -
5%₹553 Cr
Itc Limited October 2019 Future
Derivatives | -
5%-₹505 Cr19,392,000
↑ 19,392,000
ITC Ltd (Consumer Defensive)
Equity, Since 30 Sep 17 | ITC
5%₹504 Cr19,392,000
↑ 4,953,600
Housing Development Finance Corporation Limited October 2019 Future
Derivatives | -
4%-₹431 Cr2,160,500
↑ 2,160,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC
4%₹427 Cr2,160,500
↑ 1,070,500
Reliance Industries Limited October 2019 Future
Derivatives | -
4%-₹423 Cr3,162,500
↑ 3,162,500
Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE
4%₹421 Cr3,162,500
↑ 453,000
Icici Bank Limited
Certificate of Deposit | -
3%₹274 Cr

4. Reliance 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.

Reliance 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 2018 was 6.8% , 2017 was 5.5% and 2016 was 6.6% .

Below is the key information for Reliance Arbitrage Fund

Reliance Arbitrage Fund
Growth
Launch Date 14 Oct 10
NAV (19 Nov 19) ₹19.713 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹9,497 on 31 Oct 19
Category Hybrid - Arbitrage
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 1.05
Sharpe Ratio 4.46
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 Oct 14₹10,000
31 Oct 15₹10,856
31 Oct 16₹11,545
31 Oct 17₹12,212
31 Oct 18₹13,053
31 Oct 19₹13,880

Reliance 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 Reliance 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 19 Nov 19

DurationReturns
1 Month 0.3%
3 Month 1.2%
6 Month 3%
1 Year 6.3%
3 Year 6.2%
5 Year 6.7%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.8%
2017 5.5%
2016 6.6%
2015 8.1%
2014 8%
2013 9.7%
2012 9.9%
2011 8.3%
2010
2009
Fund Manager information for Reliance Arbitrage Fund
NameSinceTenure
Kinjal Desai25 May 181.35 Yr.
Anand Gupta12 Sep 181.05 Yr.

Data below for Reliance Arbitrage Fund as on 31 Oct 19

Asset Allocation
Asset ClassValue
Cash97.55%
Debt1.31%
Other1.49%
Equity Sector Allocation
SectorValue
Energy0.32%
Basic Materials0.06%
Debt Sector Allocation
SectorValue
Cash Equivalent92.7%
Corporate5.11%
Government1.05%
Credit Quality
RatingValue
AA10.68%
AAA89.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
68%₹6,471 Cr647,101
↓ -4,447
Hdfc Bank Limited
Certificate of Deposit | -
12%₹1,100 Cr
Reliance Industries Limited_28/11/2019 (Energy)
Derivatives | RELIANCE
6%-₹606 Cr4,124,000
↑ 4,124,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE
6%₹604 Cr4,124,000
↓ -1,485,500
Housing Development Finance Corporation Limited_28/11/2019 (Financial Services)
Derivatives | HDFC
6%-₹568 Cr2,658,500
↑ 2,658,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC
6%₹567 Cr2,658,500
↓ -424,000
Net Current Assets
Net Current Assets | -
5%₹429 Cr
Tata Consultancy Services Limited_28/11/2019 (Technology)
Derivatives | TCS
4%-₹405 Cr1,778,750
↑ 1,778,750
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 18 | TCS
4%₹404 Cr1,778,750
↓ -561,750
Sun Pharmaceutical Industries Limited_28/11/2019 (Healthcare)
Derivatives | SUNPHARMA
4%-₹403 Cr9,282,900
↑ 9,282,900

5. 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 2018 was 6% , 2017 was 5.6% and 2016 was 6.5% .

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 (19 Nov 19) ₹19.7139 ↓ 0.00   (-0.01 %)
Net Assets (Cr) ₹5,150 on 31 Oct 19
Category Hybrid - Arbitrage
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 0.94
Sharpe Ratio 4.79
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 Oct 14₹10,000
31 Oct 15₹10,791
31 Oct 16₹11,467
31 Oct 17₹12,130
31 Oct 18₹12,877
31 Oct 19₹13,689

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 19 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.3%
6 Month 3.1%
1 Year 6.3%
3 Year 6%
5 Year 6.5%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6%
2017 5.6%
2016 6.5%
2015 7.6%
2014 8.3%
2013 9.5%
2012 7.1%
2011 7.1%
2010 5.4%
2009
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 Oct 19

Asset Allocation
Asset ClassValue
Cash97.64%
Debt2.71%
Equity Sector Allocation
SectorValue
Financial Services20.67%
Energy11.52%
Technology7.01%
Health Care6.97%
Basic Materials5.88%
Consumer Cyclical5.16%
Consumer Defensive4.9%
Utility1.94%
Communication Services1.73%
Industrials1.49%
Real Estate0.7%
Debt Sector Allocation
SectorValue
Cash Equivalent97.64%
Corporate2.71%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
69%₹3,215 Cr321,527
↑ 41,569
Reliance_(31/10/2019)
Derivatives | -
9%-₹417 Cr3,118,000
↑ 3,118,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 18 | RELIANCE
9%₹415 Cr3,118,000
↑ 536,000
Clearing Corporation Of India Limited
CBLO | -
8%₹374 Cr
Hdfc_(31/10/2019)
Derivatives | -
8%-₹360 Cr1,806,500
↑ 1,806,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Apr 18 | HDFC
8%₹357 Cr1,806,500
↑ 402,500
Net Receivables / (Payables)
Net Current Assets | -
4%-₹197 Cr
Tata Capital Limited
Debentures | -
4%₹166 Cr1,650
Tcs_(31/10/2019)
Derivatives | -
3%-₹151 Cr719,000
↑ 719,000
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 19 | TCS
3%₹151 Cr719,000
↑ 470,000

6. 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 6.4% since its launch.  Return for 2018 was 6% , 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 (19 Nov 19) ₹11.95 ↑ 0.00   (0.03 %)
Net Assets (Cr) ₹662 on 31 Oct 19
Category Hybrid - Arbitrage
AMC BNP Paribas Asset Mgmt India Pvt. Ltd
Rating Not Rated
Risk Moderately High
Expense Ratio 1.12
Sharpe Ratio 4.06
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 Oct 17₹10,539
31 Oct 18₹11,205
31 Oct 19₹11,906

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 19 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.3%
6 Month 3%
1 Year 6.2%
3 Year
5 Year
10 Year
15 Year
Since launch 6.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6%
2017 6.4%
2016
2015
2014
2013
2012
2011
2010
2009
Fund Manager information for BNP Paribas Arbitrage Fund 
NameSinceTenure
Karthikraj Lakshmanan28 Dec 162.76 Yr.
Mayank Prakash28 Dec 162.76 Yr.

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

Asset Allocation
Asset ClassValue
Cash100.37%
Equity Sector Allocation
SectorValue
Financial Services21.27%
Consumer Cyclical10.48%
Energy7.5%
Basic Materials7.37%
Technology6.33%
Consumer Defensive4.96%
Health Care4.76%
Industrials3.55%
Utility1.14%
Communication Services0.3%
Real Estate0.29%
Debt Sector Allocation
SectorValue
Cash Equivalent100.37%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Receivables / (Payables)
Net Current Assets | -
75%₹496 Cr
91 Days Deposit With Icici Bank Ltd
Net Current Assets | -
9%₹60 Cr598,800,000
↑ 598,800,000
Treps
CBLO/Reverse Repo | -
6%₹37 Cr
Reliance Industries Ltd Fut 28-Nov-19
Derivatives | -
5%-₹36 Cr246,000
↑ 246,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
5%₹36 Cr246,000
↓ -198,500
91 Days Deposit With Hdfc Bank Ltd
Net Current Assets | -
5%₹32 Cr315,000,000
↑ 315,000,000
Hdfc Ltd Fut 28-Nov-19
Derivatives | -
4%-₹23 Cr108,500
↑ 108,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 18 | HDFC
3%₹23 Cr108,500
↓ -48,500
Axis Bank Ltd Fut 28-Nov-19
Derivatives | -
3%-₹20 Cr274,800
↑ 274,800
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 19 | 532215
3%₹20 Cr274,800
↑ 86,400

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 2018 was 6.3% , 2017 was 5.8% and 2016 was 6.7% .

Below is the key information for Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund
Growth
Launch Date 29 Sep 05
NAV (19 Nov 19) ₹27.4615 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹16,198 on 31 Oct 19
Category Hybrid - Arbitrage
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.68
Sharpe Ratio 4.45
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 Oct 14₹10,000
31 Oct 15₹10,773
31 Oct 16₹11,478
31 Oct 17₹12,160
31 Oct 18₹12,947
31 Oct 19₹13,758

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
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 19 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.3%
6 Month 3%
1 Year 6.2%
3 Year 6.1%
5 Year 6.6%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.3%
2017 5.8%
2016 6.7%
2015 7.5%
2014 9%
2013 9.2%
2012 9.6%
2011 7.5%
2010 6.3%
2009 5.2%
Fund Manager information for Kotak Equity Arbitrage Fund
NameSinceTenure
Hiten Shah3 Oct 190 Yr.
Rukun Tarachandani9 May 190.4 Yr.

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

Asset Allocation
Asset ClassValue
Cash97.64%
Debt2.69%
Equity Sector Allocation
SectorValue
Financial Services19.32%
Energy9.17%
Basic Materials7.9%
Technology6.88%
Consumer Defensive6.8%
Consumer Cyclical4.26%
Industrials3.83%
Health Care3.71%
Utility2.93%
Communication Services0.98%
Real Estate0.45%
Debt Sector Allocation
SectorValue
Cash Equivalent87.61%
Corporate10.96%
Government1.63%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
66%₹10,770 Cr1,076,996
↑ 12,162
Hdfc Bank Ltd.
Certificate of Deposit | -
11%₹1,724 Cr
Kotak Liquid Dir Gr
Investment Fund | -
6%₹951 Cr2,422,409
↑ 1,135,299
Reliance Industries Ltd.-NOV2019
Derivatives | -
5%-₹790 Cr5,368,500
↑ 5,368,500
Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE
5%₹786 Cr5,368,500
↓ -108,000
HDFC Ltd.-NOV2019
Derivatives | -
5%-₹784 Cr3,668,500
↑ 3,668,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Sep 17 | HDFC
5%₹782 Cr3,668,500
↑ 24,500
Axis Bank Ltd.
Certificate of Deposit | -
4%₹646 Cr
ITC Ltd.-NOV2019
Derivatives | -
3%-₹517 Cr19,992,000
↑ 19,992,000
ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 16 | ITC
3%₹515 Cr19,992,000
↑ 3,144,000

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.
How helpful was this page ?
Rated 4.7, based on 17 reviews.
POST A COMMENT