Fincash » Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund
Table of Contents
Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund (Formerly Reliance Arbitrage Fund) both belong to the arbitrage category of Hybrid Fund. Arbitrage funds are a type of Mutual Funds that leverage on the price differences of different markets to earn profits. Arbitrage Funds are named after the arbitrage strategy that they use. The returns of these funds are dependent on the Volatility of the invested asset on the Market. They make use of the market inefficiencies to generate returns for their investors. Though both Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund belong to the same category there differ in some parameters like AUM, NAV, performances, etc. So, to make a better investment decision, let's have a look at both the schemes in a detailed manner.
Kotak Equity Arbitrage Fund was launched in the year 2005 with an aim to generate Capital appreciation by Investing in a derivative segment of the equity market and seek Income by investing in arbitrage opportunities in the cash. A portion of the Portfolio is invested in debt and money market instruments. Some of the top holdings of the fund (as on 30th June 2018) are Net Current Assets, Kotak Liquid Dir Gr, HDFC Bank Ltd, Axis Bank Ltd, Tata Steel Ltd, etc. Kotak Equity Arbitrage Fund is been currently managed by Deepak Gupta.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
Nippon India Arbitrage Fund, earlier known as Reliance Arbitrage Fund was launched in the year 2010. The fund seeks to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market. As the fund also invests in debt and money market securities, it profits from regular income. Some of the top holdings of Reliance/Nippon India Arbitrage Fund as on 30th June 2018 are Cash Offset For Derivatives, HDFC Bank Ltd, Housing Development Finance Corp Ltd, Axis Bank Ltd, ICICI Bank Ltd. etc. The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.
Though both Kotak Equity Arbitrage Fund Vs Reliance/Nippon India Arbitrage Fund belong to the arbitrage category of hybrid funds, nevertheless; they differ on account of various parameters. So, let us understand the differences between both the schemes based on these parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Current NAV, Fincash Rating, and Scheme Category are some of the comparable elements that form part of the basics section. It is the first section in the comparison of both the schemes. The comparison of current NAV reveals that there is a drastic difference between the NAV of both the schemes. As on 31st Jul, 2018, the NAV of Kotak Equity Arbitrage Fund was INR 25.3528, while the NAV of Nippon India Arbitrage Fund was INR 18.1855. With respect to the Fincash Rating, it can be said that both the funds are rated as 4-Star. The summary comparison of the basics section is as shown in the table given below.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Kotak Equity Arbitrage Fund
Growth
Fund Details ₹37.2106 ↑ 0.04 (0.11 %) ₹63,310 on 30 Apr 25 29 Sep 05 ☆☆☆☆ Hybrid Arbitrage 2 Moderately Low 0.96 1.98 0 0 Not Available 0-30 Days (0.25%),30 Days and above(NIL) Nippon India Arbitrage Fund
Growth
Fund Details ₹26.3578 ↑ 0.03 (0.10 %) ₹14,113 on 30 Apr 25 14 Oct 10 ☆☆☆☆ Hybrid Arbitrage 3 Moderately Low 1.07 0.86 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL)
This section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes at various intervals. Some of the time intervals include 3 Month Return, 6 Month Return, 1 Year Return, and Return since Inception. The comparison of CAGR returns shows that both Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund has performed closely in many instance. The table given below shows the summary of performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Kotak Equity Arbitrage Fund
Growth
Fund Details 0.4% 1.7% 3.4% 7.3% 6.9% 5.7% 6.9% Nippon India Arbitrage Fund
Growth
Fund Details 0.4% 1.6% 3.2% 6.9% 6.6% 5.4% 6.9%
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The comparison of absolute returns generated by both the schemes for a particular year is compared in the yearly performance section. It is the third section in the comparison of both the schemes.
Parameters Yearly Performance 2024 2023 2022 2021 2020 Kotak Equity Arbitrage Fund
Growth
Fund Details 7.8% 7.4% 4.5% 4% 4.3% Nippon India Arbitrage Fund
Growth
Fund Details 7.5% 7% 4.2% 3.8% 4.3%
It is the last section on the comparison of both the schemes that compares the elements like AUM, minimum SIP and lump sum investment and others. The comparison of AUM reveals that there is a significant difference in the AUM of both the schemes. As on 30th June 2018, the AUM of Kotak Equity Arbitrage Fund was INR 11,764 crore, while of Reliance Arbitrage Fund was INR 8,123 crores. Similarly, the minimum SIP investment for both the schemes is also different. The SIP amount for Nippon India Mutual Fund’s scheme is INR 100 and for Kotak Mutual Fund’s scheme is INR 500. However, the minimum lumpsum amount for both the schemes is the same, that is, INR 5,000. The table given below shows the comparison of other details section.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Kotak Equity Arbitrage Fund
Growth
Fund Details ₹500 ₹5,000 Hiten Shah - 5.58 Yr. Nippon India Arbitrage Fund
Growth
Fund Details ₹100 ₹5,000 Vikash Agarwal - 0.63 Yr.
Kotak Equity Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 20 ₹10,000 30 Apr 21 ₹10,353 30 Apr 22 ₹10,768 30 Apr 23 ₹11,358 30 Apr 24 ₹12,262 30 Apr 25 ₹13,176 Nippon India Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Apr 20 ₹10,000 30 Apr 21 ₹10,349 30 Apr 22 ₹10,747 30 Apr 23 ₹11,298 30 Apr 24 ₹12,157 30 Apr 25 ₹13,018
Kotak Equity Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 94.03% Debt 6.23% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 18.21% Energy 8.45% Basic Materials 7.55% Consumer Cyclical 6.16% Technology 5.89% Consumer Defensive 5.63% Industrials 4.73% Health Care 3.32% Utility 3.26% Communication Services 2.58% Real Estate 0.59% Debt Sector Allocation
Sector Value Cash Equivalent 81.37% Corporate 14.27% Government 4.62% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -10% ₹6,002 Cr 13,502,657
↓ -567,091 Kotak Liquid Dir Gr
Investment Fund | -5% ₹2,856 Cr 5,451,848
↓ -8,518,620 RELIANCE INDUSTRIES LTD.-APR2025
Derivatives | -4% -₹2,711 Cr 21,155,000
↑ 21,155,000 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE4% ₹2,697 Cr 21,155,000
↓ -2,708,500 ICICI Bank Ltd.-APR2025
Derivatives | -4% -₹2,152 Cr 15,875,300
↑ 15,875,300 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK4% ₹2,141 Cr 15,875,300
↓ -9,205,000 Kotak Savings Fund Dir Gr
Investment Fund | -3% ₹1,979 Cr 449,226,479
↓ -261,769,341 HDFC Bank Ltd.-APR2025
Derivatives | -2% -₹1,388 Cr 7,559,750
↑ 7,559,750 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹1,382 Cr 7,559,750
↓ -1,247,400 Infosys Ltd.-APR2025
Derivatives | -2% -₹1,077 Cr 6,824,800
↑ 6,824,800 Nippon India Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 26.9% Equity 68.36% Debt 4.69% Other 0.06% Equity Sector Allocation
Sector Value Financial Services 23.08% Industrials 7.14% Basic Materials 6.71% Consumer Cyclical 6.47% Energy 6.44% Technology 5.74% Consumer Defensive 4.53% Health Care 3.09% Communication Services 2.65% Utility 1.73% Real Estate 0.78% Debt Sector Allocation
Sector Value Cash Equivalent 17.7% Corporate 9.44% Government 4.44% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -12% ₹1,704 Cr 4,132,789 Nippon India Liquid Dir Gr
Investment Fund | -12% ₹1,684 Cr 2,653,349
↑ 1,341,760 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE4% ₹551 Cr 4,318,000
↓ -616,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | ICICIBANK4% ₹493 Cr 3,655,400
↓ -529,900 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322153% ₹426 Cr 3,865,000
↓ -1,173,750 Jio Financial Services Ltd (Financial Services)
Equity, Since 30 Nov 24 | JIOFIN2% ₹343 Cr 15,082,650
↑ 4,227,300 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jan 25 | ITC2% ₹280 Cr 6,830,400
↑ 302,400 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Jun 23 | HAL2% ₹252 Cr 604,200
↓ -264,750 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK2% ₹232 Cr 1,268,300
↑ 422,950 Infosys Ltd (Technology)
Equity, Since 31 Oct 23 | INFY2% ₹230 Cr 1,464,000
↑ 274,800
Thus, based on the above pointers, it can be said that both the schemes differ on account of various parameters. Consequently, investors should be very cautious before investing in any of the Mutual Fund schemes. They should understand the modalities of the scheme completely. Also, if required, they can consult a financial advisor for an opinion. This will help the individuals to attain their goals on time in a hassle-free manner.
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