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Fincash » Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund

Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund

Updated on March 27, 2025 , 1411 views

Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund (Formerly Reliance 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 Kotak Equity Arbitrage Fund Vs Nippon India 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.

Kotak Equity Arbitrage Fund

Kotak Equity Arbitrage Fund was launched in the year 2005 with an aim to generate Capital appreciation by Investing in a derivative segment of the equity market and seek Income by investing in arbitrage opportunities in the cash. A portion of the Portfolio is invested in debt and money market instruments. Some of the top holdings of the fund (as on 30th June 2018) are Net Current Assets, Kotak Liquid Dir Gr, HDFC Bank Ltd, Axis Bank Ltd, Tata Steel Ltd, etc. Kotak Equity Arbitrage Fund is been currently managed by Deepak Gupta.

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 Fund, earlier known as Reliance Arbitrage 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 India 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. The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.

Kotak Equity Arbitrage Fund Vs Nippon India Arbitrage Fund

Though both Kotak Equity Arbitrage Fund Vs Reliance/Nippon India Arbitrage Fund belong to the arbitrage category of hybrid funds, nevertheless; they differ on account of various parameters. So, let us understand the differences between both the schemes based on these parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

Current NAV, Fincash Rating, and Scheme Category are some of the comparable elements that form part of the basics section. It is the first section in the comparison of both the schemes. The comparison of current NAV reveals that there is a drastic difference between the NAV of both the schemes. As on 31st Jul, 2018, the NAV of Kotak Equity Arbitrage Fund was INR 25.3528, while the NAV of Nippon India Arbitrage Fund was INR 18.1855. With respect to the Fincash Rating, it can be said that both the funds are rated as 4-Star. The summary comparison of the basics section is as shown in the table given below.

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
Kotak Equity Arbitrage Fund
Growth
Fund Details
₹36.8798 ↑ 0.08   (0.21 %)
₹58,923 on 28 Feb 25
29 Sep 05
Hybrid
Arbitrage
2
Moderately Low
0.96
1.75
0
0
Not Available
0-30 Days (0.25%),30 Days and above(NIL)
Nippon India Arbitrage Fund
Growth
Fund Details
₹26.1381 ↑ 0.05   (0.20 %)
₹14,436 on 28 Feb 25
14 Oct 10
Hybrid
Arbitrage
3
Moderately Low
1.07
0.57
0
0
Not Available
0-1 Months (0.25%),1 Months and above(NIL)

Performance Section

This section compares the Compounded Annual Growth Rate or CAGR returns of both the schemes at various intervals. Some of the time intervals include 3 Month Return, 6 Month Return, 1 Year Return, and Return since Inception. The comparison of CAGR returns shows that both Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund has performed closely in many instance. The table given below shows the summary of performance section.

Parameters
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Kotak Equity Arbitrage Fund
Growth
Fund Details
0.7%
1.9%
3.8%
7.5%
6.9%
5.7%
6.9%
Nippon India Arbitrage Fund
Growth
Fund Details
0.7%
1.8%
3.6%
7.1%
6.5%
5.4%
6.9%

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Yearly Performance Section

The comparison of absolute returns generated by both the schemes for a particular year is compared in the yearly performance section. It is the third section in the comparison of both the schemes.

Parameters
Yearly Performance2023
2022
2021
2020
2019
Kotak Equity Arbitrage Fund
Growth
Fund Details
7.8%
7.4%
4.5%
4%
4.3%
Nippon India Arbitrage Fund
Growth
Fund Details
7.5%
7%
4.2%
3.8%
4.3%

Other Details Section

It is the last section on the comparison of both the schemes that compares the elements like AUM, minimum SIP and lump sum investment and others. The comparison of AUM reveals that there is a significant difference in the AUM of both the schemes. As on 30th June 2018, the AUM of Kotak Equity Arbitrage Fund was INR 11,764 crore, while of Reliance Arbitrage Fund was INR 8,123 crores. Similarly, the minimum SIP investment for both the schemes is also different. The SIP amount for Nippon India Mutual Fund’s scheme is INR 100 and for Kotak Mutual Fund’s scheme is INR 500. However, the minimum lumpsum amount for both the schemes is the same, that is, INR 5,000. The table given below shows the comparison of other details section.

Parameters
Other DetailsMin SIP Investment
Min Investment
Fund Manager
Kotak Equity Arbitrage Fund
Growth
Fund Details
₹500
₹5,000
Hiten Shah - 5.41 Yr.
Nippon India Arbitrage Fund
Growth
Fund Details
₹100
₹5,000
Siddharth Deb - 0.46 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Kotak Equity Arbitrage Fund
Growth
Fund Details
DateValue
29 Feb 20₹10,000
28 Feb 21₹10,353
28 Feb 22₹10,799
28 Feb 23₹11,314
29 Feb 24₹12,197
28 Feb 25₹13,104
Growth of 10,000 investment over the years.
Nippon India Arbitrage Fund
Growth
Fund Details
DateValue
29 Feb 20₹10,000
28 Feb 21₹10,338
28 Feb 22₹10,771
28 Feb 23₹11,244
29 Feb 24₹12,082
28 Feb 25₹12,939

Detailed Portfolio Comparison

Asset Allocation
Kotak Equity Arbitrage Fund
Growth
Fund Details
Asset ClassValue
Cash96.98%
Debt3.24%
Other0.06%
Equity Sector Allocation
SectorValue
Financial Services22.78%
Energy8.75%
Basic Materials7.66%
Consumer Cyclical7.39%
Industrials6.11%
Technology5.07%
Utility4.11%
Consumer Defensive3.85%
Communication Services3.7%
Health Care2.62%
Real Estate1.11%
Debt Sector Allocation
SectorValue
Cash Equivalent89.83%
Corporate8.51%
Government1.88%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Kotak Money Market Dir Gr
Investment Fund | -
11%₹6,155 Cr14,047,011
↓ -2,864,557
Kotak Liquid Dir Gr
Investment Fund | -
7%₹3,884 Cr7,504,262
↑ 3,446,288
Reliance Industries Ltd (Energy)
Equity, Since 31 May 18 | RELIANCE
6%₹3,337 Cr26,377,000
↓ -5,025,500
RELIANCE INDUSTRIES LTD.-FEB2025
Derivatives | -
6%-₹3,324 Cr26,172,500
↑ 25,738,000
Kotak Savings Fund Dir Gr
Investment Fund | -
6%₹3,290 Cr756,977,377
↓ -36,351,371
Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 532215
4%₹2,326 Cr23,591,875
↑ 2,520,000
Axis Bank Ltd.-FEB2025
Derivatives | -
4%-₹2,310 Cr23,318,750
↑ 23,286,250
ICICI Bank Ltd.-FEB2025
Derivatives | -
3%-₹1,990 Cr15,824,200
↑ 15,729,700
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 19 | ICICIBANK
3%₹1,982 Cr15,824,200
↑ 10,978,800
HDFC Bank Ltd.-FEB2025
Derivatives | -
3%-₹1,503 Cr8,802,200
↑ 8,802,200
Asset Allocation
Nippon India Arbitrage Fund
Growth
Fund Details
Asset ClassValue
Cash94.66%
Debt5.55%
Other0.05%
Equity Sector Allocation
SectorValue
Financial Services24.19%
Industrials8.62%
Energy7.9%
Basic Materials6.92%
Consumer Cyclical6.76%
Consumer Defensive4.19%
Technology4.16%
Health Care3.62%
Communication Services2.29%
Utility1.22%
Real Estate0.49%
Debt Sector Allocation
SectorValue
Cash Equivalent86.35%
Corporate10.67%
Government3.19%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Nippon India Money Market Dir Gr
Investment Fund | -
11%₹1,679 Cr4,132,789
Future on Reliance Industries Ltd
Derivatives | -
5%-₹690 Cr5,434,000
↓ -3,130,500
Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE
5%₹687 Cr5,434,000
↓ -3,130,500
Future on Axis Bank Ltd
Derivatives | -
4%-₹542 Cr5,473,125
↑ 2,011,875
Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 532215
4%₹540 Cr5,473,125
↑ 2,011,875
Nippon India Low Duration Dir Gr
Investment Fund | -
4%₹538 Cr1,403,663
Future on IndusInd Bank Ltd
Derivatives | -
3%-₹401 Cr4,020,000
↓ -402,500
IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Mar 19 | INDUSINDBK
3%₹398 Cr4,020,000
↓ -402,500
Nippon India Liquid Dir Gr
Investment Fund | -
3%₹373 Cr594,953
Future on ICICI Bank Ltd
Derivatives | -
2%-₹366 Cr2,911,300
↑ 1,141,000

Thus, based on the above pointers, it can be said that both the schemes differ on account of various parameters. Consequently, investors should be very cautious before investing in any of the Mutual Fund schemes. They should understand the modalities of the scheme completely. Also, if required, they can consult a financial advisor for an opinion. This will help the individuals to attain their goals on time in a hassle-free manner.

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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