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7 Best Arbitrage Mutual Funds 2024
Generally, people willing to invest in arbitrage funds look for the best arbitrage funds. But what are Arbitrage funds?
An arbitrage fund is a popular short-term financial investment in India. Arbitrage funds are Mutual Funds that leverage the differential price between the cash Market and derivative market to generate mutual fund returns.
The returns generated by arbitrage funds are dependent on the Volatility of the stock market. Arbitrage mutual funds are hybrid in nature and in times of high or persistent volatility, these funds offer relatively risk-free returns to investors. Before Investing in these funds it is important to understand arbitrage funds taxation and know the best arbitrage funds.
Why Invest in Arbitrage Funds?
Here are some of the benefits of investing in arbitrage funds:
1. Negligible Risk
Arbitrage funds are not 100% risk-free but they do carry negligible risk. They Bank on the mispricing happening in the markets. This gives the investor a safer option compared to other short-term funds since these funds offer better returns during market volatility.
2. Returns
These funds generally give a return of about 7-9% of the amount invested. This is higher compared to Liquid Funds or short-term debt funds in low rate enviornment (When RBI is reducing rate).
Thus, making arbitrage funds a lucrative investment option.
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3. Favourable Taxation
One of the biggest benefits of investing in these funds is the tax treatment. Equity Funds attract long term Capital gains. If the gains are made up to INR 1 lakh then it counts under tax-free. Tax at 10% applies to gains above INR 1 lakh.
Arbitrage Funds Taxation
As mentioned above, these funds are taxed favourably. They are said to be a combination of good Debt fund returns and the tax treatment of equity mutual funds. Arbitrage schemes are taxed similar to equity funds making it an attractive investment for people in higher tax brackets. For example, if you belong to a 30% tax bracket, investing in equity arbitrage funds can lower your tax rates to 10% for LTCG and 15% for STCG.
Top 7 Arbitrage Mutual Funds 2024 - 2025
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) Kotak Equity Arbitrage Fund Growth ₹36.1321
↑ 0.03 ₹54,941 1.7 3.5 7.9 6.5 5.6 7.4 UTI Arbitrage Fund Growth ₹33.7766
↑ 0.02 ₹6,144 1.7 3.5 7.7 6.2 5.4 7.2 HDFC Arbitrage Fund Growth ₹29.571
↑ 0.03 ₹16,606 1.7 3.5 7.7 6.3 5.2 7.2 Edelweiss Arbitrage Fund Growth ₹18.6985
↑ 0.02 ₹12,537 1.7 3.4 7.7 6.3 5.5 7.1 ICICI Prudential Equity Arbitrage Fund Growth ₹33.0882
↑ 0.03 ₹24,997 1.7 3.5 7.7 6.3 5.4 7.1 Invesco India Arbitrage Fund Growth ₹30.7799
↑ 0.02 ₹18,584 1.6 3.4 7.6 6.6 5.5 7.4 Axis Arbitrage Fund Growth ₹18.0369
↑ 0.01 ₹5,515 1.6 3.3 7.6 6.2 5.3 6.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Dec 24
*Below is the list of Arbitrage funds sorted on last 1 year return and having AUM > 100 Crore.
The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. However, there is no assurance that the objective of the scheme will be realized Kotak Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 29 Sep 05. It is a fund with Moderately Low risk and has given a Below is the key information for Kotak Equity Arbitrage Fund Returns up to 1 year are on (Erstwhile UTI SPREAD Fund) The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity and equity-related securities, derivatives and the balance portion in debt securities. However, there can be no assurance that the investment objective of the scheme will be realised. UTI Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 22 Jun 06. It is a fund with Moderately Low risk and has given a Below is the key information for UTI Arbitrage Fund Returns up to 1 year are on "To generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments." HDFC Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 23 Oct 07. It is a fund with Moderately Low risk and has given a Below is the key information for HDFC Arbitrage Fund Returns up to 1 year are on The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized. Edelweiss Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 27 Jun 14. It is a fund with Moderately Low risk and has given a Below is the key information for Edelweiss Arbitrage Fund Returns up to 1 year are on The investment objective of Income Optimiser Plan under the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio. ICICI Prudential Equity Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Dec 06. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Equity Arbitrage Fund Returns up to 1 year are on The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. Invesco India Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 30 Apr 07. It is a fund with Moderately Low risk and has given a Below is the key information for Invesco India Arbitrage Fund Returns up to 1 year are on (Erstwhile Axis Enhanced Arbitrage Fund) To generate income through low volatility absolute return strategies that take advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns. Axis Arbitrage Fund is a Hybrid - Arbitrage fund was launched on 14 Aug 14. It is a fund with Moderate risk and has given a Below is the key information for Axis Arbitrage Fund Returns up to 1 year are on 1. Kotak Equity Arbitrage Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 2 in Arbitrage category. Return for 2023 was 7.4% , 2022 was 4.5% and 2021 was 4% . Kotak Equity Arbitrage Fund
Growth Launch Date 29 Sep 05 NAV (18 Dec 24) ₹36.1321 ↑ 0.03 (0.08 %) Net Assets (Cr) ₹54,941 on 31 Oct 24 Category Hybrid - Arbitrage AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.96 Sharpe Ratio 1.62 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (0.25%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,420 30 Nov 21 ₹10,858 30 Nov 22 ₹11,288 30 Nov 23 ₹12,130 30 Nov 24 ₹13,078 Returns for Kotak Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.5% 1 Year 7.9% 3 Year 6.5% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 4.5% 2021 4% 2020 4.3% 2019 6.1% 2018 6.3% 2017 5.8% 2016 6.7% 2015 7.5% 2014 9% Fund Manager information for Kotak Equity Arbitrage Fund
Name Since Tenure Hiten Shah 3 Oct 19 5.17 Yr. Data below for Kotak Equity Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 96.59% Debt 3.8% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 19.89% Consumer Cyclical 10.74% Basic Materials 8.88% Energy 8.3% Industrials 7.62% Health Care 5% Consumer Defensive 4.78% Technology 4.6% Communication Services 4.15% Utility 3.2% Real Estate 1.33% Debt Sector Allocation
Sector Value Cash Equivalent 88.19% Corporate 10.36% Government 1.84% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Money Market Dir Gr
Investment Fund | -13% ₹7,152 Cr 16,613,327
↑ 702,864 Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE5% ₹2,916 Cr 21,894,500
↑ 11,232,500 RELIANCE INDUSTRIES LTD.-NOV2024
Derivatives | -5% -₹2,891 Cr 21,593,000
↑ 21,210,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹2,792 Cr 16,088,050
↑ 8,061,350 HDFC Bank Ltd.-NOV2024
Derivatives | -5% -₹2,764 Cr 15,811,400
↑ 15,401,650 Kotak Savings Fund Dir Gr
Investment Fund | -4% ₹2,153 Cr 503,995,200
↓ -269,504,613 Kotak Liquid Dir Gr
Investment Fund | -2% ₹1,333 Cr 2,620,868
↑ 392,726 Bharti Airtel Ltd-NOV2024
Derivatives | -2% -₹1,174 Cr 7,229,975
↑ 7,229,975 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹1,166 Cr 7,229,975
↑ 4,259,800 Mahindra & Mahindra Ltd.-NOV2024
Derivatives | -2% -₹1,148 Cr 4,172,000
↑ 4,172,000 2. UTI Arbitrage Fund
CAGR/Annualized return of 6.8% since its launch. Ranked 8 in Arbitrage category. Return for 2023 was 7.2% , 2022 was 4% and 2021 was 3.9% . UTI Arbitrage Fund
Growth Launch Date 22 Jun 06 NAV (18 Dec 24) ₹33.7766 ↑ 0.02 (0.07 %) Net Assets (Cr) ₹6,144 on 31 Oct 24 Category Hybrid - Arbitrage AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.85 Sharpe Ratio 1.47 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (0.5%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,420 30 Nov 21 ₹10,851 30 Nov 22 ₹11,230 30 Nov 23 ₹12,040 30 Nov 24 ₹12,965 Returns for UTI Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.5% 1 Year 7.7% 3 Year 6.2% 5 Year 5.4% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.2% 2022 4% 2021 3.9% 2020 4.4% 2019 6.2% 2018 6.2% 2017 5.7% 2016 6.5% 2015 7.6% 2014 8.1% Fund Manager information for UTI Arbitrage Fund
Name Since Tenure Amit Sharma 2 Jul 18 6.42 Yr. Sharwan Kumar Goyal 1 Jan 21 3.92 Yr. Data below for UTI Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 97.13% Equity 0.01% Debt 2.83% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 21.4% Consumer Cyclical 7.66% Industrials 7.52% Basic Materials 7.28% Energy 5.63% Technology 4.24% Health Care 3.83% Consumer Defensive 3.62% Communication Services 3.59% Utility 2.18% Real Estate 1.69% Debt Sector Allocation
Sector Value Cash Equivalent 91.79% Corporate 7.16% Government 1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity UTI Money Market Dir Gr
Investment Fund | -15% ₹941 Cr 3,173,930 Future on HDFC Bank Ltd
Derivatives | -5% -₹329 Cr 1,882,100
↓ -118,800 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK5% ₹327 Cr 1,882,100
↓ -118,800 Future on Reliance Industries Ltd
Derivatives | -4% -₹229 Cr 1,709,500
↑ 1,253,750 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 23 | RELIANCE4% ₹228 Cr 1,709,500
↑ 798,000 Future on Bank of Baroda
Derivatives | -3% -₹180 Cr 7,116,525
↑ 193,050 Bank of Baroda (Financial Services)
Equity, Since 31 May 23 | 5321343% ₹179 Cr 7,116,525
↑ 193,050 Future on Vedanta Ltd
Derivatives | -3% -₹168 Cr 3,611,000 Vedanta Ltd (Basic Materials)
Equity, Since 30 Sep 23 | 5002953% ₹168 Cr 3,611,000 Future on Tata Consultancy Services Ltd
Derivatives | -2% -₹128 Cr 320,950
↑ 87,675 3. HDFC Arbitrage Fund
CAGR/Annualized return of 6.5% since its launch. Ranked 10 in Arbitrage category. Return for 2023 was 7.2% , 2022 was 4.2% and 2021 was 3.6% . HDFC Arbitrage Fund
Growth Launch Date 23 Oct 07 NAV (18 Dec 24) ₹29.571 ↑ 0.03 (0.09 %) Net Assets (Cr) ₹16,606 on 31 Oct 24 Category Hybrid - Arbitrage AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.86 Sharpe Ratio 1.52 Information Ratio 0 Alpha Ratio 0 Min Investment 100,000 Min SIP Investment 300 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,358 30 Nov 21 ₹10,762 30 Nov 22 ₹11,151 30 Nov 23 ₹11,961 30 Nov 24 ₹12,876 Returns for HDFC Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.5% 1 Year 7.7% 3 Year 6.3% 5 Year 5.2% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.2% 2022 4.2% 2021 3.6% 2020 3.7% 2019 6% 2018 5.7% 2017 5.3% 2016 6.6% 2015 7.6% 2014 7.9% Fund Manager information for HDFC Arbitrage Fund
Name Since Tenure Anil Bamboli 1 Feb 22 2.83 Yr. Arun Agarwal 24 Aug 20 4.27 Yr. Nirman Morakhia 15 Feb 23 1.79 Yr. Dhruv Muchhal 22 Jun 23 1.45 Yr. Data below for HDFC Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 95.86% Debt 4.54% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 18.29% Energy 10.19% Basic Materials 9.28% Consumer Cyclical 7.82% Industrials 6.98% Technology 4.61% Health Care 4.2% Utility 4.15% Consumer Defensive 2.21% Real Estate 2.09% Communication Services 1.93% Debt Sector Allocation
Sector Value Cash Equivalent 90.29% Corporate 8.66% Government 1.45% Credit Quality
Rating Value AA 11.86% AAA 88.14% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Money Market Dir Gr
Investment Fund | -13% ₹2,231 Cr 4,031,366
↑ 180,774 Future on Reliance Industries Ltd
Derivatives | -8% -₹1,325 Cr Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE8% ₹1,318 Cr 9,897,000
↑ 5,159,000 Future on HDFC Bank Ltd
Derivatives | -5% -₹800 Cr HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK5% ₹795 Cr 4,582,050
↓ -375,650 HDFC Liquid Dir Gr
Investment Fund | -5% ₹789 Cr 1,595,363 Future on Vedanta Ltd
Derivatives | -3% -₹450 Cr Vedanta Ltd (Basic Materials)
Equity, Since 30 Sep 23 | 5002953% ₹448 Cr 9,643,900
↓ -2,067,700 Future on Hindustan Aeronautics Ltd Ordinary Shares
Derivatives | -3% -₹417 Cr Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Dec 23 | HAL2% ₹414 Cr 974,100
↑ 24,600 4. Edelweiss Arbitrage Fund
CAGR/Annualized return of 6.2% since its launch. Ranked 1 in Arbitrage category. Return for 2023 was 7.1% , 2022 was 4.4% and 2021 was 3.8% . Edelweiss Arbitrage Fund
Growth Launch Date 27 Jun 14 NAV (18 Dec 24) ₹18.6985 ↑ 0.02 (0.08 %) Net Assets (Cr) ₹12,537 on 31 Oct 24 Category Hybrid - Arbitrage AMC Edelweiss Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 1.08 Sharpe Ratio 1.15 Information Ratio -0.24 Alpha Ratio 0.35 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-30 Days (0.25%),30 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,440 30 Nov 21 ₹10,866 30 Nov 22 ₹11,279 30 Nov 23 ₹12,095 30 Nov 24 ₹13,014 Returns for Edelweiss Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.4% 1 Year 7.7% 3 Year 6.3% 5 Year 5.5% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.1% 2022 4.4% 2021 3.8% 2020 4.5% 2019 6.2% 2018 6.1% 2017 5.8% 2016 6.7% 2015 8% 2014 Fund Manager information for Edelweiss Arbitrage Fund
Name Since Tenure Bhavesh Jain 27 Jun 14 10.44 Yr. Rahul Dedhia 1 Aug 24 0.33 Yr. Amit Vora 6 Nov 24 0.07 Yr. Pranavi Kulkarni 1 Jul 24 0.42 Yr. Data below for Edelweiss Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 93.95% Debt 6.47% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 18.16% Energy 9.28% Technology 9.19% Basic Materials 8.92% Industrials 7.73% Consumer Cyclical 7.23% Health Care 5.62% Communication Services 4.26% Consumer Defensive 3.8% Utility 1.99% Real Estate 1.24% Debt Sector Allocation
Sector Value Cash Equivalent 90.95% Government 4.89% Corporate 4.58% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -7% ₹915 Cr 2,812,837 Future on Reliance Industries Ltd
Derivatives | -6% -₹722 Cr 5,389,500
↑ 4,322,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE6% ₹718 Cr 5,389,500
↑ 3,254,500 Future on HDFC Bank Ltd
Derivatives | -3% -₹371 Cr 2,123,550
↓ -411,400 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK3% ₹369 Cr 2,123,550
↓ -411,400 EdelweissNifty PSU BPSDLA2650:50IdxDrGr
Investment Fund | -2% ₹302 Cr 243,599,114 Future on Bharti Airtel Ltd
Derivatives | -2% -₹294 Cr 1,813,550
↑ 554,325 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 23 | BHARTIARTL2% ₹292 Cr 1,813,550
↑ 554,325 Future on Vedanta Ltd
Derivatives | -2% -₹264 Cr 5,648,800
↑ 1,777,900 Vedanta Ltd (Basic Materials)
Equity, Since 31 Aug 23 | 5002952% ₹262 Cr 5,648,800
↑ 1,777,900 5. ICICI Prudential Equity Arbitrage Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 4 in Arbitrage category. Return for 2023 was 7.1% , 2022 was 4.2% and 2021 was 3.9% . ICICI Prudential Equity Arbitrage Fund
Growth Launch Date 30 Dec 06 NAV (18 Dec 24) ₹33.0882 ↑ 0.03 (0.10 %) Net Assets (Cr) ₹24,997 on 31 Oct 24 Category Hybrid - Arbitrage AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.97 Sharpe Ratio 1.1 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,418 30 Nov 21 ₹10,844 30 Nov 22 ₹11,243 30 Nov 23 ₹12,051 30 Nov 24 ₹12,964 Returns for ICICI Prudential Equity Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.7% 6 Month 3.5% 1 Year 7.7% 3 Year 6.3% 5 Year 5.4% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.1% 2022 4.2% 2021 3.9% 2020 4.3% 2019 5.9% 2018 6.2% 2017 5.5% 2016 6.8% 2015 7.6% 2014 8.6% Fund Manager information for ICICI Prudential Equity Arbitrage Fund
Name Since Tenure Nikhil Kabra 29 Dec 20 3.93 Yr. Sharmila D’mello 31 Jul 22 2.34 Yr. Darshil Dedhia 13 Sep 24 0.22 Yr. Ajaykumar Solanki 23 Aug 24 0.27 Yr. Archana Nair 1 Feb 24 0.83 Yr. Data below for ICICI Prudential Equity Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 95.02% Debt 5.36% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 19.62% Industrials 10.54% Basic Materials 8.23% Consumer Cyclical 7.59% Energy 7.31% Technology 5.43% Consumer Defensive 3.93% Health Care 3.55% Communication Services 3.45% Utility 2.61% Real Estate 1.69% Debt Sector Allocation
Sector Value Cash Equivalent 92.86% Corporate 5.87% Government 1.65% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -11% ₹2,725 Cr 74,722,063
↑ 2,064,441 Future on HDFC Bank Ltd
Derivatives | -5% -₹1,343 Cr 7,682,950
↑ 483,450 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK5% ₹1,334 Cr 7,682,950
↑ 483,450 ICICI Pru Savings Dir Gr
Investment Fund | -3% ₹862 Cr 16,474,508 Future on Reliance Industries Ltd
Derivatives | -3% -₹722 Cr 5,391,500
↑ 4,155,750 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE3% ₹718 Cr 5,391,500
↑ 2,920,000 Future on Tata Motors Ltd
Derivatives | -3% -₹641 Cr 7,637,850
↑ 88,000 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Jan 23 | TATAMOTORS3% ₹637 Cr 7,637,850
↑ 88,000 Future on Tata Consultancy Services Ltd
Derivatives | -2% -₹544 Cr 1,362,725
↓ -49,525 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Oct 20 | TCS2% ₹541 Cr 1,362,725
↓ -49,525 6. Invesco India Arbitrage Fund
CAGR/Annualized return of 6.6% since its launch. Ranked 9 in Arbitrage category. Return for 2023 was 7.4% , 2022 was 5.1% and 2021 was 3.5% . Invesco India Arbitrage Fund
Growth Launch Date 30 Apr 07 NAV (18 Dec 24) ₹30.7799 ↑ 0.02 (0.08 %) Net Assets (Cr) ₹18,584 on 31 Oct 24 Category Hybrid - Arbitrage AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 1.05 Sharpe Ratio 1.52 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-15 Days (0.5%),15 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,410 30 Nov 21 ₹10,799 30 Nov 22 ₹11,290 30 Nov 23 ₹12,130 30 Nov 24 ₹13,056 Returns for Invesco India Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.4% 1 Year 7.6% 3 Year 6.6% 5 Year 5.5% 10 Year 15 Year Since launch 6.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 5.1% 2021 3.5% 2020 4.3% 2019 5.9% 2018 5.9% 2017 5.5% 2016 6.5% 2015 7.6% 2014 8.3% Fund Manager information for Invesco India Arbitrage Fund
Name Since Tenure Deepak Gupta 11 Nov 21 3.05 Yr. Kuber Mannadi 1 Sep 22 2.25 Yr. Data below for Invesco India Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 96.39% Debt 3.98% Other 0.03% Equity Sector Allocation
Sector Value Financial Services 16.88% Energy 12.11% Consumer Cyclical 10.19% Industrials 7.9% Basic Materials 6.32% Technology 5.92% Utility 3.15% Consumer Defensive 2.77% Communication Services 2.68% Health Care 2.18% Real Estate 0.79% Debt Sector Allocation
Sector Value Cash Equivalent 94.76% Corporate 3.52% Government 2.09% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Invesco India Liquid Dir Gr
Investment Fund | -10% ₹1,833 Cr 5,305,231
↓ -870,000 Future on Reliance Industries Ltd
Derivatives | -7% -₹1,373 Cr 10,253,000
↑ 5,852,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 22 | RELIANCE7% ₹1,366 Cr 10,253,000
↑ 1,452,000 Invesco India Money Market Dir Gr
Investment Fund | -6% ₹1,108 Cr 3,698,366 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Aug 24 | TATAMOTORS4% ₹747 Cr 8,957,850
↓ -1,250,150 Infosys Ltd (Technology)
Equity, Since 31 Oct 23 | INFY4% ₹682 Cr 3,882,000
↓ -1,798,800 Infosys Limited November 2024 Future
Derivatives | -4% -₹677 Cr 3,826,000
↑ 3,826,000 Future on Tata Motors Ltd
Derivatives | -3% -₹594 Cr 7,074,650
↓ -3,133,350 Hdfc Bank Limited November 2024 Future
Derivatives | -3% -₹507 Cr 2,900,700
↑ 2,900,700 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK3% ₹503 Cr 2,900,700
↓ -381,150 7. Axis Arbitrage Fund
CAGR/Annualized return of 5.9% since its launch. Ranked 12 in Arbitrage category. Return for 2023 was 6.9% , 2022 was 4.2% and 2021 was 3.8% . Axis Arbitrage Fund
Growth Launch Date 14 Aug 14 NAV (18 Dec 24) ₹18.0369 ↑ 0.01 (0.07 %) Net Assets (Cr) ₹5,515 on 31 Oct 24 Category Hybrid - Arbitrage AMC Axis Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 0.96 Sharpe Ratio 0.97 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,397 30 Nov 21 ₹10,809 30 Nov 22 ₹11,219 30 Nov 23 ₹11,995 30 Nov 24 ₹12,904 Returns for Axis Arbitrage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.3% 1 Year 7.6% 3 Year 6.2% 5 Year 5.3% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 6.9% 2022 4.2% 2021 3.8% 2020 4.1% 2019 5.8% 2018 6.1% 2017 5.2% 2016 6.9% 2015 7.3% 2014 Fund Manager information for Axis Arbitrage Fund
Name Since Tenure Devang Shah 14 Aug 14 10.3 Yr. Sachin Jain 9 Nov 21 3.06 Yr. Ashish Naik 4 May 22 2.58 Yr. Karthik Kumar 3 Jul 23 1.41 Yr. Data below for Axis Arbitrage Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 93.83% Debt 6.57% Other 0.01% Equity Sector Allocation
Sector Value Financial Services 20.87% Basic Materials 10.09% Industrials 9.2% Consumer Cyclical 5.31% Technology 5.29% Energy 5.2% Utility 3.96% Communication Services 3.09% Health Care 3.05% Real Estate 2.31% Consumer Defensive 2.02% Debt Sector Allocation
Sector Value Cash Equivalent 90.61% Corporate 6.27% Government 3.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Money Market Dir Gr
Investment Fund | -8% ₹461 Cr 3,361,205 Future on Reliance Industries Ltd
Derivatives | -5% -₹263 Cr 1,962,500
↑ 992,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 20 | RELIANCE5% ₹261 Cr 1,962,500
↑ 22,500 Hdfc Bank Limited November 2024 Future
Derivatives | -4% -₹243 Cr 1,389,300
↑ 1,389,300 HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 23 | HDFCBANK4% ₹241 Cr 1,389,300
↑ 455,950 Future on Bank of Baroda
Derivatives | -4% -₹213 Cr 8,456,175
↑ 734,175 Bank of Baroda (Financial Services)
Equity, Since 31 Dec 23 | 5321344% ₹212 Cr 8,456,175
↑ 734,175 Infosys Limited November 2024 Future
Derivatives | -3% -₹149 Cr 839,200
↑ 839,200 Infosys Ltd (Technology)
Equity, Since 31 Jul 24 | INFY3% ₹147 Cr 839,200
↑ 245,200 Future on Hindustan Aeronautics Ltd Ordinary Shares
Derivatives | -2% -₹118 Cr 276,000
↑ 30,900
Things to Consider as an Investor
1. Risk
As trades are carried out on the stock exchange, there’s no counter party risk involved in these funds. Even though the fund manager is buying and selling shares in cash and futures market, there is no risk exposure to equities as is the case with other diversified equity mutual funds. Though the ride looks smooth, do not get too comfortable with these funds. As more people start trading into arbitrage funds, there will be not many arbitrage opportunities available. The spread between cash and future market prices will erode, leaving little for the arbitrage focused investors.
2. Return
Arbitrage Funds may be a good opportunity to make reasonable returns for those who can understand it and then make the most of it. The fund manager tries to generate an Alpha using price differentials in markets. Historically, arbitrage funds have been found to give returns in the Range of 7%-8% over a period of 5-10 years. If you are looking to earn moderate returns via a Portfolio which has a perfect blend of debt and equity in a volatile market, arbitrage funds may be your thing. However, you need to keep one thing in mind that there are no guaranteed returns in arbitrage funds.
3. Cost
Cost becomes an important consideration while evaluating arbitrage funds. These funds charge an annual fee called expense ratio which is expressed as a percentage of the fund’s assets. It includes fund manager’s fee and fund management charges. Due to frequent trading, arbitrage funds would incur huge transaction costs and has a high turnover ratio. Additionally, the fund may levy exit loads for a period of 30 to 60 days to discourage investors from exiting early. All these costs may lead to increase in the expense ratio of the fund. A high expense ratio puts a downward pressure on your take-home returns.
4. Investment Horizon
Arbitrage funds may be suitable for investors having a short to medium term horizon of 3 to 5 years. As these funds charge exit loads, you may consider them only when you are ready to stay invested for a period of at least 3-6 months. At the same time, you need to understand that fund returns are highly dependent on the existence of high volatility. So, choosing a lump sum investment would make sense over Systematic investment plan (SIPs). In absence of volatility, liquid funds may give better returns than arbitrage funds over the same investment horizon. Hence, you need to keep the overall market scenario in mind while choosing arbitrage funds.
5. Financial Goals
If you have short to medium term Financial goals, then arbitrage funds are your thing. Instead of a regular savings bank account, you may use these funds to park excess funds in order to create an emergency fund and earn higher returns on them. In case you were already invested in riskier havens equity funds, then you may begin a Systematic Transfer Plan (STP) from the equity funds to a less risky haven like arbitrage funds as you approach completion of the financial goal. This would reduce your portfolio’s overall risk profile but at the same time reduce the returns also. You cannot expect to earn double-digit returns in arbitrage funds.
How to Invest in Arbitrage Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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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