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 ₹24.5315 ↓ -0.02 (-0.08 %) ₹13,896 on 31 Mar 24 14 Oct 10 ☆☆☆☆ Hybrid Arbitrage 3 Moderately Low 1.06 1.22 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL) ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹31.6126 ↓ -0.03 (-0.09 %) ₹17,729 on 31 Mar 24 30 Dec 06 ☆☆☆☆ Hybrid Arbitrage 4 Moderate 0.97 1.31 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 0.9% 2.1% 4% 7.8% 5.5% 5.2% 6.9% ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details 0.9% 2.1% 3.9% 7.8% 5.6% 5.3% 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 - 4.16 Yr. ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹1,000 ₹5,000 Rohan Maru - 3.26 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 31 Mar 19 ₹10,000 31 Mar 20 ₹10,623 31 Mar 21 ₹11,000 31 Mar 22 ₹11,426 31 Mar 23 ₹11,986 31 Mar 24 ₹12,884 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,626 31 Mar 21 ₹10,991 31 Mar 22 ₹11,414 31 Mar 23 ₹11,992 31 Mar 24 ₹12,895
Detailed Portfolio Comparison
Nippon India Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 97.05% Debt 3.37% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 23.84% Industrials 10.13% Energy 8.14% Basic Materials 5.8% Health Care 4.44% Consumer Cyclical 3.86% Communication Services 3.74% Consumer Defensive 3.14% Technology 3.11% Utility 2.48% Real Estate 0.08% Debt Sector Allocation
Sector Value Cash Equivalent 87.59% Corporate 9% Government 3.83% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -7% ₹1,008 Cr 2,658,820 Nippon India Liquid Dir Gr
Investment Fund | -7% ₹956 Cr 1,629,163
↑ 341,898 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK6% ₹830 Cr 5,916,900
↑ 1,175,350 Hdfc Bank Limited_28/03/2024
Derivatives | -5% -₹691 Cr 4,890,050
↑ 4,890,050 Future on Kotak Mahindra Bank Ltd
Derivatives | -3% -₹451 Cr 2,652,800
↑ 2,008,000 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Aug 23 | KOTAKBANK3% ₹448 Cr 2,652,800
↑ 2,008,000 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -3% -₹448 Cr 3,369,600
↓ -212,800 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Oct 19 | ADANIPORTS3% ₹445 Cr 3,369,600
↓ -212,800 Future on Adani Enterprises Ltd
Derivatives | -3% -₹347 Cr 1,048,800
↑ 134,700 Adani Enterprises Ltd (Energy)
Equity, Since 31 Aug 20 | 5125992% ₹345 Cr 1,048,800
↑ 134,700 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 95.76% Debt 4.67% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 21.84% Energy 9.84% Basic Materials 9.73% Industrials 8.67% Utility 4.06% Consumer Defensive 3.45% Health Care 2.86% Consumer Cyclical 2.85% Technology 2.65% Communication Services 2.63% Real Estate 0.58% Debt Sector Allocation
Sector Value Cash Equivalent 88.83% Corporate 8.64% Government 2.96% Securitized 0% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Future on HDFC Bank Ltd
Derivatives | -8% -₹1,455 Cr 10,288,300
↑ 5,552,250 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK8% ₹1,444 Cr 10,288,300
↑ 5,552,250 ICICI Pru Savings Dir Gr
Investment Fund | -5% ₹816 Cr 16,474,508 ICICI Pru Money Market Dir Gr
Investment Fund | -5% ₹801 Cr 23,107,758
↑ 23,107,758 364 DTB 14032024
Sovereign Bonds | -4% ₹624 Cr 62,500,000
↑ 15,000,000 Future on Reliance Industries Ltd
Derivatives | -3% -₹595 Cr 2,019,250
↑ 36,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE3% ₹590 Cr 2,019,250
↑ 36,000 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -2% -₹421 Cr 3,164,800
↓ -92,000 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Aug 19 | ADANIPORTS2% ₹418 Cr 3,164,800
↓ -92,000 Future on Adani Enterprises Ltd
Derivatives | -2% -₹393 Cr 1,186,500
↑ 301,200
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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