Fincash » Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund
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Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund
Nippon India Arbitrage Fund (Formerly known as Reliance Arbitrage Fund)and ICICI Prudential Equity 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 Reliance/Nippon India Arbitrage Fund Vs ICICI Prudential Equity 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.
Nippon India Arbitrage Fund (Formerly Reliance Arbitrage Fund)
Important Information: 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 Advantage 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 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.
ICICI Prudential Equity Arbitrage Fund
ICICI Prudential Equity Arbitrage Fund was launched in the year 2006. The aim of the fund is to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt Portfolio.
Some of the top holdings of the fund as on 30th June 2018 are Cash Offset For Derivatives, Housing Development Finance Corp Ltd, Sun Pharmaceuticals Industries Ltd, Housing Development Finance Corporation Limited, etc.
Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund
Both Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund belong to the same category of arbitrage fund. However, there are numerous differences between them. So, let us analyze the differences between both the schemes on the Basis of four sections given below.
Basics Section
Being the first section, it compares parameters such as current NAV, AUM, scheme category, Fincash Rating, and many more. With respect the sub category, both the scheme belong to Arbitrage Category
Based on Fincash Rating, it can be said that both the funds are rated as 4-Star.
The summary of the basics section is tabulated as follows.
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 Nippon India Arbitrage Fund
Growth
Fund Details ₹24.9856 ↑ 0.00 (0.00 %) ₹15,072 on 30 Jun 24 14 Oct 10 ☆☆☆☆ Hybrid Arbitrage 3 Moderately Low 1.06 1.33 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL) ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹32.2036 ↑ 0.00 (0.01 %) ₹22,163 on 30 Jun 24 30 Dec 06 ☆☆☆☆ Hybrid Arbitrage 4 Moderate 0.97 1.45 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL)
Performance Section
Compounded Annual Growth Rate or CAGR returns is the comparable parameter forming part of the basics section. The CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. The comparison of performance section shows that Reliance Arbitrage Fund has performed better than ICICI Prudential Equity Arbitrage Fund. The table given below summarizes the comparison of the performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Arbitrage Fund
Growth
Fund Details 0.6% 1.8% 3.7% 7.7% 5.7% 5.2% 6.9% ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details 0.6% 1.8% 3.7% 7.8% 5.8% 5.2% 6.9%
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Yearly Performance Section
The comparison of the absolute returns for a particular year earned by both the schemes is done in the yearly performance section. The comparison of absolute returns states that both the funds have n performed closely. The table given below shows the summary comparison of the absolute returns section.
Parameters Yearly Performance 2023 2022 2021 2020 2019 Nippon India Arbitrage Fund
Growth
Fund Details 7% 4.2% 3.8% 4.3% 6.2% ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details 7.1% 4.2% 3.9% 4.3% 5.9%
Other Details Section
Being the last section in the comparison, it includes parameters such as minimum SIP investment and minimum lumpsum investment. The minimum lump sum investment for both the schemes is same, that is, INR 5,000. However, the minimum SIP investment is different for both the schemes. The SIP amount in case of ICICI Prudential Equity Arbitrage Fund is INR 1,000 and of Reliance Arbitrage Fund is INR 100.
ICICI Prudential Equity Arbitrage Fund is jointly managed by Kayzad Eghlim and Manish Banthia.
The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.
The summary comparison of the other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Arbitrage Fund
Growth
Fund Details ₹100 ₹5,000 Anju Chhajer - 4.41 Yr. ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹1,000 ₹5,000 Rohan Maru - 3.51 Yr.
Growth of 10k Investments over the years
Nippon India Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹10,576 30 Jun 21 ₹10,942 30 Jun 22 ₹11,341 30 Jun 23 ₹11,989 30 Jun 24 ₹12,901 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹10,567 30 Jun 21 ₹10,940 30 Jun 22 ₹11,330 30 Jun 23 ₹11,994 30 Jun 24 ₹12,910
Detailed Portfolio Comparison
Nippon India Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 94.78% Debt 5.59% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 22.86% Industrials 9.69% Basic Materials 7.47% Communication Services 6.36% Energy 6.36% Health Care 4.76% Consumer Cyclical 4.35% Technology 3.01% Utility 2.25% Consumer Defensive 2.17% Real Estate 0.58% Debt Sector Allocation
Sector Value Cash Equivalent 82.54% Corporate 13.96% Government 3.87% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -10% ₹1,490 Cr 3,829,486
↑ 386,950 Nippon India Liquid Dir Gr
Investment Fund | -9% ₹1,284 Cr 2,133,787
↑ 667,585 Hdfc Bank Limited_25/07/2024
Derivatives | -6% -₹909 Cr 5,364,700
↑ 5,315,750 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK6% ₹903 Cr 5,364,700
↓ -1,483,900 Future on Vodafone Idea Ltd
Derivatives | -4% -₹587 Cr 325,520,000
↑ 154,320,000 Vodafone Idea Ltd (Communication Services)
Equity, Since 30 Nov 20 | IDEA4% ₹582 Cr 325,520,000
↑ 154,320,000 Future on Hindustan Aeronautics Ltd Ordinary Shares
Derivatives | -3% -₹460 Cr 868,200
↑ 233,400 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Jun 23 | HAL3% ₹457 Cr 868,200
↑ 233,400 Vedanta Limited_25/07/2024
Derivatives | -3% -₹380 Cr 8,307,600
↑ 8,307,600 Vedanta Ltd (Basic Materials)
Equity, Since 30 Sep 23 | 5002953% ₹377 Cr 8,307,600
↑ 1,297,200 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 93.16% Debt 7.23% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 19.72% Industrials 11.82% Basic Materials 8.55% Energy 6.96% Communication Services 5.28% Consumer Cyclical 4.06% Consumer Defensive 3.85% Technology 3.73% Utility 3.68% Health Care 3.56% Real Estate 1% Debt Sector Allocation
Sector Value Cash Equivalent 85.3% Corporate 10.19% Government 4.89% Securitized 0% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -8% ₹1,839 Cr 51,723,218
↑ 8,445,250 Future on HDFC Bank Ltd
Derivatives | -4% -₹906 Cr 5,344,900
↓ -4,900,500 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK4% ₹900 Cr 5,344,900
↓ -4,900,500 ICICI Pru Savings Dir Gr
Investment Fund | -4% ₹838 Cr 16,474,508 Future on Vodafone Idea Ltd
Derivatives | -3% -₹566 Cr 314,360,000
↑ 74,640,000 Future on Adani Enterprises Ltd
Derivatives | -3% -₹563 Cr 1,760,700
↑ 183,000 Vodafone Idea Ltd (Communication Services)
Equity, Since 30 Sep 23 | IDEA3% ₹562 Cr 314,360,000
↑ 74,640,000 Future on Hindustan Aeronautics Ltd Ordinary Shares
Derivatives | -3% -₹561 Cr 1,058,100
↑ 32,400 Future on Vedanta Ltd
Derivatives | -3% -₹560 Cr 12,247,500
↑ 3,544,300 Adani Enterprises Ltd (Energy)
Equity, Since 31 May 23 | ADANIENT3% ₹559 Cr 1,760,700
↑ 183,000
As a result, from the above-mentioned pointers, it can be said that both the schemes differ on account of numerous parameters. Therefore, individuals should pay extra caution before Investing in any of the schemes. They should check whether the scheme matches their investment objective or not and understand its modalities completely. This will help them to achieve their goals on time along with ensuring their investment is safe.
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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