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Fincash » Reliance Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Reliance Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Updated on November 18, 2019 , 96 views

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 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.

Reliance Arbitrage Fund (Erstwhile Reliance Arbitrage Advantage Fund)

Reliance Arbitrage Fund, earlier known as Reliance 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 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.

Reliance Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Both Reliance 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
Reliance Arbitrage Fund
Growth
Fund Details
₹19.7251 ↑ 0.01   (0.06 %)
₹9,497 on 31 Oct 19
14 Oct 10
Hybrid
Arbitrage
3
Moderately Low
1.05
4.46
0
0
Not Available
0-1 Months (0.25%),1 Months and above(NIL)
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
₹25.397 ↑ 0.02   (0.07 %)
₹13,392 on 31 Oct 19
30 Dec 06
Hybrid
Arbitrage
4
Moderate
0.95
3.94
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
Reliance Arbitrage Fund
Growth
Fund Details
0.3%
1.2%
3%
6.3%
6.2%
6.7%
7.7%
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
0.4%
1.2%
3%
6.1%
6%
6.5%
7.5%

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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 Performance2018
2017
2016
2015
2014
Reliance Arbitrage Fund
Growth
Fund Details
6.8%
5.5%
6.6%
8.1%
8%
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
6.2%
5.5%
6.8%
7.6%
8.6%

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
Reliance Arbitrage Fund
Growth
Fund Details
₹100
₹5,000
Kinjal Desai - 1.35 Yr.
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
₹1,000
₹5,000
Kayzad Eghlim - 8.67 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Reliance Arbitrage Fund
Growth
Fund Details
DateValue
31 Oct 14₹10,000
31 Oct 15₹10,856
31 Oct 16₹11,545
31 Oct 17₹12,212
31 Oct 18₹13,053
31 Oct 19₹13,880
Growth of 10,000 investment over the years.
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
DateValue
31 Oct 14₹10,000
31 Oct 15₹10,764
31 Oct 16₹11,477
31 Oct 17₹12,135
31 Oct 18₹12,917
31 Oct 19₹13,704

Detailed Portfolio Comparison

Asset Allocation
Reliance Arbitrage Fund
Growth
Fund Details
Asset ClassValue
Cash97.55%
Debt1.31%
Other1.49%
Equity Sector Allocation
SectorValue
Energy0.32%
Basic Materials0.06%
Debt Sector Allocation
SectorValue
Cash Equivalent92.7%
Corporate5.11%
Government1.05%
Credit Quality
RatingValue
AA10.68%
AAA89.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
68%₹6,471 Cr647,101
↓ -4,447
Hdfc Bank Limited
Certificate of Deposit | -
12%₹1,100 Cr
Reliance Industries Limited_28/11/2019 (Energy)
Derivatives | RELIANCE
6%-₹606 Cr4,124,000
↑ 4,124,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE
6%₹604 Cr4,124,000
↓ -1,485,500
Housing Development Finance Corporation Limited_28/11/2019 (Financial Services)
Derivatives | HDFC
6%-₹568 Cr2,658,500
↑ 2,658,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 18 | HDFC
6%₹567 Cr2,658,500
↓ -424,000
Net Current Assets
Net Current Assets | -
5%₹429 Cr
Tata Consultancy Services Limited_28/11/2019 (Technology)
Derivatives | TCS
4%-₹405 Cr1,778,750
↑ 1,778,750
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Sep 18 | TCS
4%₹404 Cr1,778,750
↓ -561,750
Sun Pharmaceutical Industries Limited_28/11/2019 (Healthcare)
Derivatives | SUNPHARMA
4%-₹403 Cr9,282,900
↑ 9,282,900
Asset Allocation
ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details
Asset ClassValue
Cash92.56%
Debt6.75%
Other1%
Equity Sector Allocation
SectorValue
Financial Services22.02%
Technology9.49%
Energy9.08%
Basic Materials7.03%
Health Care5.81%
Consumer Defensive5.07%
Consumer Cyclical3.26%
Industrials1.85%
Utility1.45%
Communication Services1.41%
Real Estate0.19%
Debt Sector Allocation
SectorValue
Cash Equivalent87.04%
Corporate7.98%
Government4.28%
Credit Quality
RatingValue
AA5.29%
AAA94.71%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Cash Offset For Derivatives
Derivative Margin | -
65%₹8,694 Cr869,436
↑ 3,815
Hdfc Ltd.
Derivatives | -
8%-₹1,032 Cr4,826,000
↓ -293,500
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Oct 16 | HDFC
8%₹1,029 Cr4,826,000
↓ -293,500
Reliance Industries Ltd.
Derivatives | -
6%-₹859 Cr5,842,500
↓ -616,500
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
6%₹856 Cr5,842,500
↓ -616,500
Hdfc Bank Ltd.
Derivatives | -
5%-₹669 Cr5,430,500
↓ -885,500
HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 19 | HDFCBANK
5%₹668 Cr5,430,500
↓ -885,500
Infosys Ltd.
Derivatives | -
4%-₹520 Cr7,561,200
↓ -1,242,000
Infosys Ltd (Technology)
Equity, Since 31 Jul 18 | INFY
4%₹518 Cr7,561,200
↓ -1,242,000
State Bank of India (Financial Services)
Equity, Since 31 Aug 18 | SBIN
3%₹414 Cr13,248,000
↓ -849,000

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.

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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