Fincash » Nippon India Arbitrage Fund Vs Edelweiss Arbitrage Fund
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Nippon India Arbitrage Fund Vs Edelweiss Arbitrage Fund
Nippon India Arbitrage Fund (Formerly known as Reliance Arbitrage Fund) Vs Edelweiss 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 Nippon India Arbitrage Fund and Edelweiss Arbitrage Fund belong to the same category they 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 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. The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.
Edelweiss Arbitrage Fund
Edelweiss Arbitrage Fund was launched in the year 2014. The investment objective of the scheme is to generate income by Investing in arbitrage opportunities in the cash and the derivative segments of the equity markets. The fund also seeks advantage of the arbitrage opportunities available within the derivative segment and by investing a portion in debt and money market securities. Some of the top holdings of Edelweiss Arbitrage Fund as on 30th June 2018 are Cash Offset For Derivatives, Clearing Corporation Of India Ltd, Edelweiss Commodities Services Ltd, JSW Steel Ltd Shs Dematerialised, Indiabulls Housing Finance Ltd, etc. Edelweiss Arbitrage Fund is been currently managed by two managers- Dhawal Dalal and Bhavesh Jain.
Nippon India/Reliance Arbitrage Fund Vs Edelweiss Arbitrage Fund
Though both Nippon India Arbitrage Fund and Edelweiss 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 Nippon India Arbitrage Fund was INR 18.1855, while the NAV of Edelweiss Arbitrage Fund was INR 13.189. With respect to the Fincash Rating, it can be said that Nippon India Arbitrage Fund is rated as 4-Star and Edelweiss Arbitrage Fund is rated as 5-Star. The summary comparison of the basics section is as shown in the table given below.
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 ₹25.4447 ↑ 0.03 (0.13 %) ₹15,258 on 30 Sep 24 14 Oct 10 ☆☆☆☆ Hybrid Arbitrage 3 Moderately Low 1.07 0.62 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL) Edelweiss Arbitrage Fund
Growth
Fund Details ₹18.554 ↑ 0.03 (0.15 %) ₹12,233 on 30 Sep 24 27 Jun 14 ☆☆☆☆☆ Hybrid Arbitrage 1 Moderately Low 1.08 0.88 -0.04 0.32 Not Available 0-30 Days (0.25%),30 Days 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 Nippon India/ Reliance Arbitrage Fund and Edelweiss Arbitrage Fund has performed closely in many instance. The table given below shows the summary of 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% 1.7% 3.4% 7.4% 6% 5.2% 6.9% Edelweiss Arbitrage Fund
Growth
Fund Details 0.6% 1.7% 3.5% 7.5% 6.2% 5.4% 6.1%
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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 Performance 2023 2022 2021 2020 2019 Nippon India Arbitrage Fund
Growth
Fund Details 7% 4.2% 3.8% 4.3% 6.2% Edelweiss Arbitrage Fund
Growth
Fund Details 7.1% 4.4% 3.8% 4.5% 6.2%
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 Nippon India/Reliance Arbitrage Fund was INR 8,123 crores, while the AUM of Edelweiss Arbitrage Fund was INR 4,807 crores. Similarly, the minimum SIP investment for both the schemes is also different. The SIP amount for Nippon Mutual Fund’s scheme is INR 100 and for HDFC 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 Details Min SIP Investment Min Investment Fund Manager Nippon India Arbitrage Fund
Growth
Fund Details ₹100 ₹5,000 Siddharth Deb - 0.04 Yr. Edelweiss Arbitrage Fund
Growth
Fund Details ₹500 ₹5,000 Bhavesh Jain - 10.27 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 Oct 19 ₹10,000 31 Oct 20 ₹10,445 31 Oct 21 ₹10,832 31 Oct 22 ₹11,230 31 Oct 23 ₹12,021 31 Oct 24 ₹12,908 Edelweiss Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,468 31 Oct 21 ₹10,856 31 Oct 22 ₹11,272 31 Oct 23 ₹12,084 31 Oct 24 ₹12,992
Detailed Portfolio Comparison
Nippon India Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 95.57% Debt 4.87% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 22.65% Industrials 10.98% Basic Materials 10.03% Energy 7.9% Technology 7.44% Health Care 5.07% Consumer Cyclical 3.5% Consumer Defensive 2.65% Communication Services 2.58% Utility 0.79% Real Estate 0.63% Debt Sector Allocation
Sector Value Cash Equivalent 93.08% Corporate 4.7% Government 2.65% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -10% ₹1,589 Cr 4,007,134 Hdfc Bank Limited_31/10/2024
Derivatives | -5% -₹794 Cr 4,547,950
↑ 4,547,950 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 23 | HDFCBANK5% ₹788 Cr 4,547,950
↓ -563,200 Nippon India Liquid Dir Gr
Investment Fund | -4% ₹619 Cr 1,010,171
↓ -163,000 Vedanta Ltd (Basic Materials)
Equity, Since 30 Sep 23 | 5002954% ₹573 Cr 11,180,300
↓ -177,100 Future on Vedanta Ltd Cedear
Derivatives | -4% -₹572 Cr 11,180,300
↓ -177,100 Nippon India Low Duration Dir Gr
Investment Fund | -3% ₹485 Cr 1,297,639 Infosys Ltd (Technology)
Equity, Since 31 Oct 23 | INFY3% ₹427 Cr 2,275,200
↑ 1,743,600 Infosys Limited_31/10/2024
Derivatives | -3% -₹426 Cr 2,275,200
↑ 2,275,200 Future on Adani Enterprises Ltd
Derivatives | -3% -₹415 Cr 1,315,800 Edelweiss Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 93.66% Debt 6.81% Other 0.02% Equity Sector Allocation
Sector Value Financial Services 19.54% Basic Materials 8.54% Technology 8.42% Energy 7.71% Industrials 7.7% Consumer Cyclical 5.97% Health Care 5.35% Communication Services 4.03% Consumer Defensive 2.85% Utility 1.96% Real Estate 1.42% Debt Sector Allocation
Sector Value Cash Equivalent 86.29% Corporate 9.45% Government 4.73% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Edelweiss Liquid Dir Gr
Investment Fund | -7% ₹909 Cr 2,812,837 Future on HDFC Bank Ltd
Derivatives | -4% -₹443 Cr 2,534,950
↑ 2,534,950 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 21 | HDFCBANK4% ₹439 Cr 2,534,950
↓ -2,668,600 Future on Tata Consultancy Services Ltd
Derivatives | -3% -₹412 Cr 960,050
↑ 960,050 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jul 22 | TCS3% ₹410 Cr 960,050
↑ 834,225 Future on Reliance Industries Ltd
Derivatives | -3% -₹318 Cr 1,067,500
↑ 1,067,500 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 18 | RELIANCE3% ₹315 Cr 1,067,500
↑ 252,750 EdelweissNifty PSU BPSDLA2650:50IdxDrGr
Investment Fund | -2% ₹300 Cr 243,599,114
↑ 243,599,114 Future on Adani Enterprises Ltd
Derivatives | -2% -₹253 Cr 801,900
↑ 801,900 Adani Enterprises Ltd (Energy)
Equity, Since 30 Apr 23 | 5125992% ₹251 Cr 801,900
↓ -104,400
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.
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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