These 3 Low-Risk Hybrid Arbitrage Fund Has Given Good Returns In 3 Years

There's a strong chance you've never heard of arbitrage funds because they are not your standard mutual funds. Arbitrage funds, unlike other types of funds, place huge orders and profit on price differences for the same security in several marketplaces. This enables investors to profit from market volatility while avoiding excessive risk.

Arbitrage funds have various advantages, including minimal risk and favourable tax status. Here are 3 low-risk hybrid arbitrage funds that have given good returns over the years.

Tata Arbitrage Fund -Direct-Growth

As of 10 February 2022, the Tata Arbitrage Fund - Regular Plan's current NAV for the Growth option of its Direct plan is Rs 11.93 Cr. Fund size is Rs 11,192 Cr.

The fund was launched on 10 December 2018. the Tata Arbitrage Fund - Regular Plan has Rs 11,192 crore in assets under management. The fund has an expense ratio of 0.32%, which is close to its category average expense ratio. Currently, the fund has a -0.11% allocation to equity and 27.33% to Debt.

It has given 4.74% returns in the last 1-year. Since its inception, it has delivered 5.75% average annual returns. The fund's debt part has a low credit rating, meaning that the borrowers to whom it has given money are not of high quality.

Returns

1-Year	2-Year	3-Year	Since Inception
4.74%	4.97%	5.69%	5.75%

 

Edelweiss Arbitrage Fund -Direct-Growth

As of 10 February 2022, the Tata Arbitrage Fund - Regular Plan's current NAV for the Growth option of its Regular plan is Rs 16.39 Cr. Fund size is Rs 6549.65 Cr. As of now, the fund has a 0.08% allocation to equity and 35.83% to Debt.

The fund was launched on 12 June 2014 by the Edelweiss Mutual Fund. Edelweiss Arbitrage Fund Direct-Growth has Rs 6,550 Crores worth of AUM as of 31 December 2021. The fund has an expense ratio of 0.34%.

In the last 1 year, the fund has given 4.83% under the Direct-Growth plan. Since its inception, it has delivered 6.70% average annual returns. The fund's equity portion is primarily invested in the Financial, Metals, Services, Energy, Technology sectors.

Returns

1-Year	2-Year	3-Year	Since Inception
4.83%	4.80%	5.52%	6.70%

 

Nippon India Arbitrage Fund- Direct-Growth

As of 10 February 2022, Fund's Direct-Growth plan's NAV stood at Rs 22.715 Cr. The fund size is Rs 11756.6 Cr. Nippon India Arbitrage Fund Direct-Growth returns of the last 1-year are 4.78%. Since its launch, it has delivered 7.11% average annual returns.

This fund was launched on 01 January 2013. Nippon India Arbitrage Fund Direct-Growth has Rs 11,757 Crores worth of AUM as of 31 December 2021. The fund has an expense ratio of 0.34%. Currently, the fund has a 0.02% allocation to equity and 24.92% to Debt.
The fund's consistency of returns is equivalent to those of other products in its category. In a low market, it has a great ability to reduce losses. The fund's debt part has a low credit rating, meaning that the borrowers to whom it has given money are not of high quality.

Returns

1-Year	2-Year	3-Year	Since Inception
4.78%	4.68%	5.38%	67.11%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl and Groww. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.