Arbitrage Fund
Fund Type
Open Ended
Investment Plan
Dividend Payout
Expense Ratio
1%
Asset Size
5078.84 Cr.
(As of 31 Dec, 2022)
Benchmark
NIFTY 50 Arbitrage PR INR
Riskometer
Investors understand that their principal will be at Low to Moderate Risk.
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.
Fund manager
Dhawal Dalal
Exit load
0.1 %
(If redeemed within 30 days)Minimum sip
₹500
Minimum investment
₹5000
This fund is been allocated in various sectors including some of the prominent ones that are widely accepted and are creating a value of trust.
Future on Kotak Mahindra Bank Ltd
3.83%
Kotak Mahindra Bank Ltd
3.81%
Future on Adani Ports & Special Economic Zone Ltd
3.12%
Adani Ports & Special Economic Zone Ltd
3.09%
Arbitrage Funds provide a safer investment avenue for the investors with low risk appetite by leveraging the price difference in the cash and derivatives market to generate returns. These usually invest around 65% of their corpus in equity-related instruments and are often seen as short-term wealth generating opportunities. Since the difference between the two prices is marginal, arbitrage funds are required to execute a humongous number of trades every year to book substantial profits. While Arbitrage Funds are a good investment option when you’ve a volatile market, the fact that their expense ratio is high and the payoff is unpredictable, count for noticeable disadvantages.
This fund is rated 0 stars by Morning Star Ratings.
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