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7 Best Arbitrage Mutual Funds 2022
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.
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).
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.
Talk to our investment specialist
Top 7 Arbitrage Mutual Funds 2022 - 2023
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2021 (%) SBI Arbitrage Opportunities Fund Growth ₹27.6538
↑ 0.01 ₹8,375 0.8 1.6 3.7 3.8 4.8 4 Invesco India Arbitrage Fund Growth ₹26.0924
↓ 0.00 ₹1,095 0.9 1.9 3.7 4.1 4.9 3.5 Axis Arbitrage Fund Growth ₹15.4243
↑ 0.01 ₹5,303 0.6 1.5 3.6 4 4.8 3.8 Kotak Equity Arbitrage Fund Growth ₹30.6186
↑ 0.01 ₹25,789 0.8 1.6 3.5 4.2 5 4 Edelweiss Arbitrage Fund Growth ₹15.9115
↑ 0.00 ₹6,993 0.7 1.5 3.4 4.2 5 3.8 Nippon India Arbitrage Fund Growth ₹21.8959
↑ 0.01 ₹10,809 0.7 1.4 3.3 4 5 3.8 ICICI Prudential Equity Arbitrage Fund Growth ₹28.1701
↑ 0.01 ₹13,400 0.7 1.4 3.2 4 4.9 3.9 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.
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 Below is the key information for SBI Arbitrage Opportunities Fund Returns up to 1 year are on 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 Below is the key information for Invesco India Arbitrage Fund Returns up to 1 year are on (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 Below is the key information for Axis Arbitrage Fund Returns up to 1 year are on 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 Below is the key information for Kotak Equity Arbitrage Fund Returns up to 1 year are on 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 Below is the key information for Edelweiss Arbitrage Fund Returns up to 1 year are on (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 Below is the key information for Nippon India Arbitrage Fund Returns up to 1 year are on 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 Below is the key information for ICICI Prudential Equity Arbitrage Fund Returns up to 1 year are on 1. SBI Arbitrage Opportunities Fund
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% . 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.
Date Value 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 Returns for SBI Arbitrage Opportunities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Neeraj Kumar 5 Oct 12 9.82 Yr. Arun R. 1 Jul 21 1.08 Yr. Data below for SBI Arbitrage Opportunities Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 97.42% Equity 0.11% Debt 2.47% Equity Sector Allocation
Sector Value Financial Services 23.1% Basic Materials 9.86% Industrials 7.99% Energy 6.47% Technology 3.89% Consumer Cyclical 3.45% Consumer Defensive 3.12% Communication Services 2.85% Utility 2.05% Health Care 1.82% Real Estate 0.93% Debt Sector Allocation
Sector Value Cash Equivalent 93.4% Corporate 3.84% Government 2.65% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Savings Dir Gr
Investment Fund | -13% ₹1,109 Cr 309,686,238
↑ 55,992,318 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹415 Cr 3,077,800
↓ -159,500 Future on HDFC Bank Ltd
Derivatives | -5% -₹414 Cr 3,077,800
↓ -159,500 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 30 Jun 18 | ADANIPORTS5% ₹410 Cr 6,095,000
↑ 108,750 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -5% -₹408 Cr 6,095,000
↑ 108,750 182 Dtb 08092022
Sovereign Bonds | -4% ₹337 Cr 34,000,000
↑ 29,000,000 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 18 | HDFC4% ₹331 Cr 1,524,000
↑ 394,800 Future on Housing Development Finance Corp Ltd
Derivatives | -4% -₹330 Cr 1,524,000
↑ 394,800 Future on Adani Enterprises Ltd
Derivatives | -4% -₹307 Cr 1,397,000
↓ -12,000 Adani Enterprises Ltd (Energy)
Equity, Since 30 Jun 21 | 5125994% ₹306 Cr 1,397,000
↓ -12,000 2. Invesco India Arbitrage Fund
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% . 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.
Date Value 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 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Deepak Gupta 11 Nov 21 0.72 Yr. Data below for Invesco India Arbitrage Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 95.93% Equity 0.03% Debt 4.03% Equity Sector Allocation
Sector Value Financial Services 24.85% Basic Materials 7.67% Technology 6.56% Communication Services 5.83% Industrials 5.56% Consumer Cyclical 5.23% Energy 3.09% Consumer Defensive 3.03% Health Care 1.28% Utility 0.93% Real Estate 0.24% Debt Sector Allocation
Sector Value Cash Equivalent 93.42% Government 4.78% Corporate 1.76% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -18% ₹201 Cr 682,164
↓ -119,682 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 May 22 | ADANIPORTS4% ₹40 Cr 601,250
↑ 577,500 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -4% -₹40 Cr 601,250
↑ 577,500 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Jun 19 | HDFC4% ₹39 Cr 179,100
↑ 144,300 Future on Housing Development Finance Corp Ltd
Derivatives | -4% -₹39 Cr 179,100
↑ 144,300 Future on Multi Commodity Exchange of India Ltd
Derivatives | -3% -₹35 Cr 269,200
↓ -14,300 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 30 Nov 21 | MCX3% ₹35 Cr 269,200
↓ -14,300 HCL Technologies Ltd (Technology)
Equity, Since 31 Oct 21 | HCLTECH3% ₹35 Cr 358,400
↑ 168,000 Future on HCL Technologies Ltd
Derivatives | -3% -₹35 Cr 358,400
↑ 168,000 IDFC Ltd (Financial Services)
Equity, Since 31 Dec 21 | IDFC2% ₹26 Cr 5,230,000
↑ 310,000 3. Axis Arbitrage Fund
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% . 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.
Date Value 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 Returns for Axis Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Devang Shah 14 Aug 14 7.97 Yr. Sachin Jain 9 Nov 21 0.72 Yr. Ashish Naik 4 May 22 0.24 Yr. Data below for Axis Arbitrage Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 95.98% Equity 0.15% Debt 3.87% Equity Sector Allocation
Sector Value Financial Services 19.27% Basic Materials 11.7% Technology 6.41% Energy 5.73% Consumer Defensive 5.19% Industrials 4.07% Communication Services 3.57% Health Care 3.53% Consumer Cyclical 2.37% Real Estate 1.89% Utility 1.79% Debt Sector Allocation
Sector Value Cash Equivalent 89.86% Corporate 6.58% Government 3.41% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Money Market Dir Gr
Investment Fund | -8% ₹423 Cr 3,647,672
↓ -862,522 Axis Ultra Short Term Fund Dir Gr
Investment Fund | -7% ₹390 Cr 309,869,162 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 20 | RELIANCE5% ₹276 Cr 1,062,000 Future on Reliance Industries Ltd
Derivatives | -5% -₹275 Cr 1,062,000 182 DTB 14072022
Sovereign Bonds | -5% ₹250 Cr 25,000,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK4% ₹201 Cr 1,493,250 Future on HDFC Bank Ltd
Derivatives | -4% -₹201 Cr 1,493,250 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC3% ₹177 Cr 815,400
↑ 40,500 Future on Housing Development Finance Corp Ltd
Derivatives | -3% -₹177 Cr 815,400
↑ 40,500 Axis Liquid Dir Gr
Investment Fund | -3% ₹170 Cr 710,947 4. Kotak Equity Arbitrage Fund
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% . 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.
Date Value 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 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Hiten Shah 3 Oct 19 2.83 Yr. Data below for Kotak Equity Arbitrage Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 95.62% Equity 0.13% Debt 4.24% Equity Sector Allocation
Sector Value Financial Services 17.87% Basic Materials 11.1% Technology 7.93% Consumer Cyclical 6.28% Consumer Defensive 5.49% Industrials 4.9% Energy 4.39% Health Care 3.82% Utility 2.61% Communication Services 1.96% Real Estate 0.89% Debt Sector Allocation
Sector Value Cash Equivalent 89.24% Corporate 5.58% Government 5.05% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -11% ₹2,759 Cr 7,553,686 Kotak Liquid Dir Gr
Investment Fund | -7% ₹1,806 Cr 4,155,222
↓ -3,477,705 Kotak Savings Fund Dir Gr
Investment Fund | -5% ₹1,303 Cr 358,715,116
↑ 358,715,116 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK3% ₹858 Cr 6,362,400
↓ -1,293,600 HDFC Bank Ltd.-JUL2022
Derivatives | -3% -₹856 Cr 6,362,400
↑ 6,362,400 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Sep 17 | HDFC3% ₹795 Cr 3,663,300
↑ 1,494,300 HDFC Ltd.-JUL2022
Derivatives | -3% -₹794 Cr 3,663,300
↑ 3,663,300 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE2% ₹531 Cr 2,044,500
↑ 709,750 Reliance Industries Ltd.-JUL2022
Derivatives | -2% -₹530 Cr 2,044,500
↑ 1,988,750 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Jun 17 | MARUTI2% ₹523 Cr 616,900
↑ 233,700 5. Edelweiss Arbitrage Fund
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% . 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.
Date Value 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 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Dhawal Dalal 22 Dec 16 5.61 Yr. Bhavesh Jain 27 Jun 14 8.1 Yr. Data below for Edelweiss Arbitrage Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 92.77% Equity 0.1% Debt 7.14% Equity Sector Allocation
Sector Value Financial Services 19.82% Basic Materials 10.47% Industrials 6.23% Communication Services 6.21% Energy 5.47% Technology 3.7% Consumer Cyclical 3.16% Health Care 2.76% Utility 1.28% Consumer Defensive 1.27% Real Estate 0.52% Debt Sector Allocation
Sector Value Cash Equivalent 89.25% Government 7.14% Corporate 3.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFC4% ₹277 Cr 1,275,900
↑ 185,400 Future on Housing Development Finance Corp Ltd
Derivatives | -4% -₹277 Cr 1,275,900
↑ 185,400 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK4% ₹276 Cr 2,043,800
↓ -267,300 Future on HDFC Bank Ltd
Derivatives | -4% -₹275 Cr 2,043,800
↓ -267,300 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Nov 17 | BHARTIARTL4% ₹263 Cr 3,843,700
↑ 892,050 Future on Bharti Airtel Ltd
Derivatives | -4% -₹263 Cr 3,843,700
↑ 892,050 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 30 Sep 19 | ADANIPORTS3% ₹232 Cr 3,458,750
↑ 993,750 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -3% -₹231 Cr 3,458,750
↑ 993,750 Future on Adani Enterprises Ltd
Derivatives | -3% -₹204 Cr 930,500
↑ 171,500 Adani Enterprises Ltd (Energy)
Equity, Since 30 Sep 18 | 5125993% ₹204 Cr 930,500
↑ 171,500 6. Nippon India Arbitrage Fund
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% . 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.
Date Value 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 Returns for Nippon India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Anju Chhajer 1 Feb 20 2.5 Yr. Kinjal Desai 25 May 18 4.19 Yr. Anand Gupta 12 Sep 18 3.89 Yr. Data below for Nippon India Arbitrage Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 86.38% Equity 0.09% Debt 13.53% Equity Sector Allocation
Sector Value Financial Services 19.75% Basic Materials 9.42% Technology 7.46% Consumer Cyclical 6.47% Industrials 6.04% Consumer Defensive 4.85% Energy 4.48% Health Care 2.58% Communication Services 1.75% Utility 1.45% Real Estate 0.67% Debt Sector Allocation
Sector Value Cash Equivalent 81.85% Government 11.98% Corporate 6.08% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -7% ₹804 Cr 2,377,640 Nippon India Liquid Dir Gr
Investment Fund | -4% ₹450 Cr 855,533 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 22 | HDFCBANK3% ₹377 Cr 2,798,950
↓ -1,104,950 Future on HDFC Bank Ltd
Derivatives | -3% -₹377 Cr 2,798,950
↓ -1,104,950 Nippon India Low Duration Dir Gr
Investment Fund | -3% ₹360 Cr 1,131,266 Future on Adani Enterprises Ltd
Derivatives | -3% -₹311 Cr 1,417,500
↓ -97,000 Adani Enterprises Ltd (Energy)
Equity, Since 31 Aug 20 | 5125993% ₹311 Cr 1,417,500
↓ -97,000 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Oct 19 | ADANIPORTS3% ₹296 Cr 4,397,500
↑ 156,250 182 Dtb 10112022
Sovereign Bonds | -3% ₹294 Cr 30,000,000 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -3% -₹294 Cr 4,397,500
↑ 156,250 7. ICICI Prudential Equity Arbitrage Fund
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% . 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.
Date Value 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 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Aug 22 Duration Returns 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
Year Returns 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
Name Since Tenure Kayzad Eghlim 1 Feb 11 11.5 Yr. Rohan Maru 29 Dec 20 1.59 Yr. Nikhil Kabra 29 Dec 20 1.59 Yr. Priyanka Khandelwal 1 Jun 20 2.17 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 30 Jun 22
Asset Allocation
Asset Class Value Cash 98.04% Equity 0.12% Debt 1.84% Equity Sector Allocation
Sector Value Financial Services 15.42% Basic Materials 10.05% Energy 7.42% Technology 6.45% Consumer Cyclical 6.45% Industrials 6.08% Health Care 3.95% Consumer Defensive 3.79% Communication Services 2.12% Utility 1.78% Real Estate 1.32% Debt Sector Allocation
Sector Value Cash Equivalent 97.3% Government 1.84% Corporate 0.74% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE5% ₹649 Cr 2,498,500
↑ 132,500 Future on Reliance Industries Ltd
Derivatives | -5% -₹648 Cr 2,498,500
↑ 132,500 91 Dtb 18082022
Sovereign Bonds | -4% ₹497 Cr 50,000,000 182 Dtb 08092022
Sovereign Bonds | -3% ₹396 Cr 40,000,000 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Aug 19 | ADANIPORTS3% ₹368 Cr 5,482,500 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -3% -₹367 Cr 5,482,500 Future on Adani Enterprises Ltd
Derivatives | -2% -₹320 Cr 1,459,500 Adani Enterprises Ltd (Energy)
Equity, Since 30 Nov 19 | 5125992% ₹320 Cr 1,459,500 182 Dtb 15092022
Sovereign Bonds | -2% ₹297 Cr 30,000,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | 5322152% ₹266 Cr 4,170,000
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?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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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