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 ₹22.6953 ↑ 0.03 (0.14 %) ₹9,234 on 28 Feb 23 14 Oct 10 ☆☆☆☆ Hybrid Arbitrage 3 Moderately Low 1.02 -1.82 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL) ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹29.2421 ↑ 0.04 (0.15 %) ₹11,273 on 28 Feb 23 30 Dec 06 ☆☆☆☆ Hybrid Arbitrage 4 Moderate 0.95 -1.53 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% 1.6% 3% 4.9% 4.1% 5% 6.8% ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details 0.6% 1.7% 3.1% 5.1% 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 Performance 2022 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 Details Min SIP Investment Min Investment Fund Manager Nippon India Arbitrage Fund
Growth
Fund Details ₹100 ₹5,000 Anju Chhajer - 3.08 Yr. ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹1,000 ₹5,000 Kayzad Eghlim - 12.08 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 18 ₹10,000 31 Mar 19 ₹10,628 31 Mar 20 ₹11,290 31 Mar 21 ₹11,692 31 Mar 22 ₹12,144 31 Mar 23 ₹12,740 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Mar 18 ₹10,000 31 Mar 19 ₹10,602 31 Mar 20 ₹11,266 31 Mar 21 ₹11,652 31 Mar 22 ₹12,101 31 Mar 23 ₹12,714
Detailed Portfolio Comparison
Nippon India Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 93.63% Equity 0.04% Debt 6.33% Equity Sector Allocation
Sector Value Financial Services 25.55% Basic Materials 12.57% Industrials 6.02% Technology 5.65% Consumer Cyclical 5.35% Health Care 4.61% Energy 3.09% Consumer Defensive 2.97% Communication Services 2.2% Utility 2.14% Real Estate 0.56% Debt Sector Allocation
Sector Value Cash Equivalent 86.39% Government 6.89% Corporate 6.68% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -7% ₹658 Cr 1,868,640 Nippon India Liquid Dir Gr
Investment Fund | -5% ₹468 Cr 855,533 Nippon India Low Duration Dir Gr
Investment Fund | -4% ₹375 Cr 1,131,266 Icici Bank Limited_29/03/2023
Derivatives | -4% -₹326 Cr 3,791,900
↑ 3,791,900 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | ICICIBANK4% ₹324 Cr 3,791,900
↓ -69,300 Future on Kotak Mahindra Bank Ltd
Derivatives | -3% -₹321 Cr 1,850,000
↑ 1,850,000 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | KOTAKBANK3% ₹320 Cr 1,850,000
↓ -322,800 Future on Housing Development Finance Corp Ltd
Derivatives | -3% -₹284 Cr 1,081,800
↑ 1,081,800 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC3% ₹282 Cr 1,081,800
↑ 272,400 Hdfc Bank Limited_29/03/2023
Derivatives | -3% -₹265 Cr 1,645,050
↑ 1,645,050 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 90.34% Debt 10.03% Equity Sector Allocation
Sector Value Financial Services 19.68% Basic Materials 10.63% Industrials 6.02% Consumer Cyclical 5.99% Health Care 5.22% Technology 4.69% Consumer Defensive 4.37% Energy 4.03% Communication Services 3.13% Utility 2.18% Real Estate 1.44% Debt Sector Allocation
Sector Value Cash Equivalent 87.55% Government 10.22% Corporate 2.6% Securitized 0.01% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Savings Dir Gr
Investment Fund | -7% ₹756 Cr 16,474,508 Future on Reliance Industries Ltd
Derivatives | -4% -₹408 Cr 1,747,500
↓ -145,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE4% ₹406 Cr 1,747,500
↓ -145,000 Future on Kotak Mahindra Bank Ltd
Derivatives | -3% -₹334 Cr 1,924,400
↑ 24,800 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Oct 21 | KOTAKBANK3% ₹333 Cr 1,924,400
↑ 24,800 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -3% -₹304 Cr 5,087,500
↓ -66,250 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Aug 19 | ADANIPORTS3% ₹301 Cr 5,087,500
↓ -66,250 182 DTB 30032023
Sovereign Bonds | -3% ₹298 Cr 30,000,000 182 DTB 17082023
Sovereign Bonds | -3% ₹290 Cr 30,000,000
↑ 30,000,000 Future on Sun Pharmaceuticals Industries Ltd
Derivatives | -2% -₹273 Cr 2,837,800
↓ -34,300
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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