Fincash » Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund
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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.
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 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.
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.
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 ₹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) ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹33.7547 ↑ 0.07 (0.21 %) ₹25,880 on 28 Feb 25 30 Dec 06 ☆☆☆☆ Hybrid Arbitrage 4 Moderate 0.97 1.41 0 0 Not Available 0-1 Months (0.25%),1 Months and above(NIL)
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 0.4% 1.6% 3.4% 7% 6.5% 5.4% 6.9% ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details 0.5% 1.7% 3.5% 7.2% 6.6% 5.4% 6.9%
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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 2023 2022 2021 2020 2019 Nippon India Arbitrage Fund
Growth
Fund Details 7.5% 7% 4.2% 3.8% 4.3% ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details 7.6% 7.1% 4.2% 3.9% 4.3%
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 Siddharth Deb - 0.46 Yr. ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details ₹1,000 ₹5,000 Nikhil Kabra - 4.17 Yr.
Nippon India Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 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 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 29 Feb 20 ₹10,000 28 Feb 21 ₹10,339 28 Feb 22 ₹10,775 28 Feb 23 ₹11,260 29 Feb 24 ₹12,101 28 Feb 25 ₹12,985
Nippon India Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 94.66% Debt 5.55% Other 0.05% Equity Sector Allocation
Sector Value Financial Services 24.19% Industrials 8.62% Energy 7.9% Basic Materials 6.92% Consumer Cyclical 6.76% Consumer Defensive 4.19% Technology 4.16% Health Care 3.62% Communication Services 2.29% Utility 1.22% Real Estate 0.49% Debt Sector Allocation
Sector Value Cash Equivalent 86.35% Corporate 10.67% Government 3.19% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India Money Market Dir Gr
Investment Fund | -11% ₹1,679 Cr 4,132,789 Future on Reliance Industries Ltd
Derivatives | -5% -₹690 Cr 5,434,000
↓ -3,130,500 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 17 | RELIANCE5% ₹687 Cr 5,434,000
↓ -3,130,500 Future on Axis Bank Ltd
Derivatives | -4% -₹542 Cr 5,473,125
↑ 2,011,875 Axis Bank Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5322154% ₹540 Cr 5,473,125
↑ 2,011,875 Nippon India Low Duration Dir Gr
Investment Fund | -4% ₹538 Cr 1,403,663 Future on IndusInd Bank Ltd
Derivatives | -3% -₹401 Cr 4,020,000
↓ -402,500 IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Mar 19 | INDUSINDBK3% ₹398 Cr 4,020,000
↓ -402,500 Nippon India Liquid Dir Gr
Investment Fund | -3% ₹373 Cr 594,953 Future on ICICI Bank Ltd
Derivatives | -2% -₹366 Cr 2,911,300
↑ 1,141,000 ICICI Prudential Equity Arbitrage Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 96.17% Debt 4.05% Other 0.04% Equity Sector Allocation
Sector Value Financial Services 18.96% Consumer Cyclical 9.02% Energy 8.15% Industrials 7.5% Basic Materials 7.32% Technology 4.89% Communication Services 4.26% Health Care 3.63% Utility 2.98% Consumer Defensive 2.37% Real Estate 1.16% Debt Sector Allocation
Sector Value Cash Equivalent 85.38% Corporate 12.51% Government 2.33% Credit Quality
Rating Value AA 0.97% AAA 99.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Money Market Dir Gr
Investment Fund | -11% ₹2,774 Cr 74,722,063 ICICI Pru Savings Dir Gr
Investment Fund | -6% ₹1,527 Cr 28,700,963
↑ 12,226,455 Future on Reliance Industries Ltd
Derivatives | -5% -₹1,232 Cr 9,703,500
↓ -73,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE5% ₹1,228 Cr 9,703,500
↓ -73,000 Future on HDFC Bank Ltd
Derivatives | -3% -₹657 Cr 3,848,900
↑ 1,118,700 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Nov 21 | HDFCBANK3% ₹654 Cr 3,848,900
↑ 1,118,700 Future on Bharti Airtel Ltd
Derivatives | -2% -₹627 Cr 3,839,425
↑ 133,950 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 23 | BHARTIARTL2% ₹624 Cr 3,839,425
↑ 133,950 Future on Kotak Mahindra Bank Ltd
Derivatives | -2% -₹600 Cr 3,140,800
↑ 524,400 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Jun 23 | KOTAKBANK2% ₹597 Cr 3,140,800
↑ 524,400
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.
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