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With 27.53% Returns In 5-Years, This Arbitrage Fund Is Good For Investment

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In this article, we have given insights into the 7 years old the Arbitrage fund. But What are Arbitrage funds? Arbitrage funds are a category of mutual funds that generate profits by leveraging price differentials in the cash and derivatives markets. The returns are affected by the asset's volatility.

 

These funds seek to profit from the difference in stock prices between the cash (or spot) and futures markets. Also, these funds seek to capitalise on price differentials by purchasing the same number of shares in the cash market and selling in the futures market at the same time.

The fund we have highlighted here has given good returns over the last 7 years. Its average annual return is also good. Check out the details here!

Indiabulls Arbitrage Fund - Direct Plan-Growth

Indiabulls Arbitrage Fund - Direct Plan-Growth

As mentioned, this is an Arbitrage Mutual Fund from the house of India Bull Asset Management Company (AMC). It was launched on 1 December 2014. It is an open-ended small-sized fund of its category. The fund's AUM or Asset Under Management is Rs 14.26 Crore. Its NAV as of 13th April 2022 is RS 15.2516. The expense ratio of this fund is 0.42, which is higher than its category average of 0.35%. 

It is a low-risk fund. Also, CRISIL rated this fund 2-Star. However, it has given relatively below-average performance among its peer funds. To start investment in this fund, the minimum amount required for Lump-Sum payment is RS 500. And For SIP, it is Rs 1000. 

Absolute And Annualised Returns
 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 5.94% average annual returns.

Investment PeriodAbsolute ReturnsAnnualised Returns
1 Year2.97%2.97%
2 Year6.03%2.97%
3 Year12.99%4.15%
5 Year27.53%4.98%
Since Inception52.52%5.94%

SIP Returns

SIP PeriodAbsolute ReturnsAnnualised Returns
1 Year1.52%2.84%
2 Year3.08%2.95%
3 Year5.15%3.29%
5 Year11.14%4.17%
Portfolio

Portfolio

The fund invests 67.03 per cent of its assets in Indian stocks, with 60.66 per cent in big-cap stocks, 1.62 per cent in mid-cap stocks, and 4.75 per cent in small-cap equities.

The equity element of the fund is predominantly invested in the Financial, Materials, Healthcare, Chemicals, and Insurance sectors. In comparison to other funds in the category, it has increased its exposure to the Financial and Materials sectors.

Housing Development Finance Corp. Ltd., UPL Ltd., HDFC Standard Life Insurance Company Ltd., Can Fin Homes Ltd., and Hindustan Unilever Ltd. are the fund's top holdings.

Disclaimer

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

Story first published: Thursday, April 14, 2022, 20:27 [IST]
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