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Fincash » Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Updated on January 24, 2023 , 562 views

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
BasicsNAV
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
₹22.4538 ↑ 0.01   (0.04 %)
₹8,841 on 31 Dec 22
14 Oct 10
Hybrid
Arbitrage
3
Moderately Low
1.02
-1.4
0
0
Not Available
0-1 Months (0.25%),1 Months and above(NIL)
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
₹28.9133 ↑ 0.01   (0.05 %)
₹10,785 on 31 Dec 22
30 Dec 06
Hybrid
Arbitrage
4
Moderate
0.95
-1.32
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
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Nippon India Arbitrage Fund
Growth
Fund Details
0.6%
1.6%
2.7%
4.3%
4.1%
5%
6.8%
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
0.7%
1.6%
2.8%
4.4%
4.1%
4.9%
6.8%

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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 Performance2022
2021
2020
2019
2018
Nippon India Arbitrage Fund
Growth
Fund Details
4.2%
3.8%
4.3%
6.2%
6.8%
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
4.2%
3.9%
4.3%
5.9%
6.2%

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 DetailsMin SIP Investment
Min Investment
Fund Manager
Nippon India Arbitrage Fund
Growth
Fund Details
₹100
₹5,000
Anju Chhajer - 2.92 Yr.
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
₹1,000
₹5,000
Kayzad Eghlim - 11.92 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Nippon India Arbitrage Fund
Growth
Fund Details
DateValue
31 Dec 17₹10,000
31 Dec 18₹10,677
31 Dec 19₹11,335
31 Dec 20₹11,824
31 Dec 21₹12,278
31 Dec 22₹12,789
Growth of 10,000 investment over the years.
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
DateValue
31 Dec 17₹10,000
31 Dec 18₹10,622
31 Dec 19₹11,252
31 Dec 20₹11,736
31 Dec 21₹12,187
31 Dec 22₹12,698

Detailed Portfolio Comparison

Asset Allocation
Nippon India Arbitrage Fund
Growth
Fund Details
Asset ClassValue
Equity141.64%
Debt7.42%
Equity Sector Allocation
SectorValue
Debt Sector Allocation
SectorValue
Government8.21%
Corporate5.79%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India Money Market Dir Gr
Investment Fund | -
8%₹647 Cr1,868,640
↓ -217,000
Nippon India Liquid Dir Gr
Investment Fund | -
6%₹461 Cr855,533
Future on Adani Enterprises Ltd
Derivatives, Since 30 Nov 22 | -
4%₹370 Cr938,250
↑ 938,250
Nippon India Low Duration Dir Gr
Investment Fund | -
4%₹369 Cr1,131,266
Adani Enterprises Ltd (Energy)
Equity, Since 31 Aug 20 | 512599
4%₹368 Cr938,250
↓ -20,750
Future on Adani Ports & Special Economic Zone Ltd
Derivatives, Since 30 Nov 22 | -
4%₹305 Cr3,433,750
↑ 3,433,750
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Oct 19 | ADANIPORTS
4%₹303 Cr3,433,750
↓ -553,750
Future on ICICI Bank Ltd
Derivatives, Since 30 Nov 22 | -
3%₹286 Cr2,986,500
↑ 2,986,500
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | ICICIBANK
3%₹285 Cr2,986,500
↓ -1,160,500
Future on Maruti Suzuki India Ltd
Derivatives, Since 30 Nov 22 | -
3%₹210 Cr232,900
↑ 232,900
Asset Allocation
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
Asset ClassValue
Cash90.97%
Debt9.51%
Equity Sector Allocation
SectorValue
Financial Services16.23%
Basic Materials11.86%
Energy9.77%
Industrials7.94%
Health Care5.2%
Consumer Cyclical5%
Technology4.1%
Consumer Defensive3.24%
Communication Services2.23%
Utility2.01%
Real Estate1.64%
Debt Sector Allocation
SectorValue
Cash Equivalent90.68%
Government8.22%
Corporate1.56%
Securitized0.01%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Pru Savings Dir Gr
Investment Fund | -
7%₹745 Cr16,474,508
Future on Reliance Industries Ltd
Derivatives | -
5%-₹523 Cr1,904,750
↓ -338,250
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
5%₹520 Cr1,904,750
↓ -338,250
Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -
4%-₹453 Cr5,111,250
↓ -267,500
Future on Adani Enterprises Ltd
Derivatives | -
4%-₹450 Cr1,142,250
↓ -105,750
Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Aug 19 | ADANIPORTS
4%₹450 Cr5,111,250
↓ -267,500
Adani Enterprises Ltd (Energy)
Equity, Since 30 Nov 19 | 512599
4%₹448 Cr1,142,250
↓ -105,750
Future on ICICI Bank Ltd
Derivatives | -
4%-₹407 Cr4,246,000
↓ -115,500
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 19 | ICICIBANK
4%₹405 Cr4,246,000
↓ -115,500
Future on HDFC Bank Ltd
Derivatives | -
4%-₹394 Cr2,199,200
↑ 483,750

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.

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.
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