June 27, 2024
mayank
NJ Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 11.4453
Suitable For Which Investors?
“Arbitrage funds invest in equity shares and derivatives, and earn their returns through the price differential between a stock and its futures. You can expect to earn better returns than what you would get from a bank account.
They are usually suitable to park your money for a period ranging between three months to a year. However, we believe that liquid funds, which have a similar risk-return payoff, are a better alternative for most investors for such a time frame. Arbitrage funds may have some appeal for those who are in the highest tax bracket, given the preferential tax treatment of these funds.
The risk of incurring a loss in these funds over the said time frame is low but they do not guarantee returns or safety of capital.
Remember, these funds usually deliver low returns which are only marginally higher than your bank account. They are not suitable if your aim is to build wealth in the long run.”
Fund’s Investment Strategy:
The scheme seeks to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market and by investing the balance in debt and money market instruments.
Fund Manager:
1) Vishal Ashar
Education: Mr. Ashar has done MBA in Finance
Experience: Prior to joining NJ Mutual Fund, he has worked with Indiabulls Mutual Fund, Motilal Oswal Financial Services Ltd and Sharekhan
2) Dhaval Patel
Education: Mr. Patel has done IBS from Hyderabad
Experience: Prior to joining NJ Mutual Fund, he has worked with Axis Mutual Fund, Credit Analysis & Research Ltd.
NJ Arbitrage Fund Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 500 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | — |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0 |
Basic Details of NJ Arbitrage Fund
| Fund House | NJ Mutual Fund |
| Launch Date | 01-Aug-22 |
| Return Since Launch | 7.35% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 414 Cr |
| (As on 31-May-2024) | |
| Expense | 0.29% |
| (As on 31-May-2024) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | 1049.00% |
Trailing Returns (%) of NJ Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| NJ Arbitrage Dir | 4.11 | -0.02 | 0.79 | 2.31 | 4.28 | 8.12 | — | — | — | — |
| CCIL T Bill Liquidity Weight | 2.23 | 0.02 | 0.41 | 1.17 | 2.32 | 4.55 | — | — | — | — |
| Hybrid: Arbitrage | 4.19 | -0.02 | 0.78 | 2.28 | 4.33 | 8.30 | — | — | — | — |
| Rank within category | 20 | 11 | 7 | 15 | 20 | 20 | — | — | — | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 27 | 25 | 24 | 21 | 16 | 10 |
Peer Comparison of NJ Arbitrage Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | Turnover (%) | |
| NJ Arbitrage Dir | Unrated | 8.12 | — | — | 0.29 | 414 | 7.35 | — | 1Y 10M | 1049.00 |
| Kotak Equity Arbitrage Dir | 4 star | 8.73 | 6.57 | 6.05 | 0.43 | 46,308 | 7.07 | 0.25 (30) | 11Y 5M | 2036.92 |
| Invesco India Arbitrage Dir | 5 star | 8.58 | 6.71 | 6.14 | 0.39 | 16,105 | 6.90 | 0.50 (15) | 11Y 5M | 1796.00 |
| Nippon India Arbitrage Dir | 4 star | 8.45 | 6.43 | 5.98 | 0.38 | 15,158 | 7.08 | 0.25 (30) | 11Y 5M | 1345.00 |
| ABSL Arbitrage Dir | 4 star | 8.51 | 6.35 | 5.91 | 0.32 | 12,684 | 6.94 | 0.25 (15) | 11Y 5M | 1534.00 |
Portfolio Analysis of NJ Arbitrage Fund
| No. of Stocks | 56 |
| Top 10 Holdings | 48.37% |
| Top 5 Stocks | 32.27% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.41 |
| Portfolio P/E Ratio | 19.11 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 2,50,484 | 1,86,538 |
| Giant (%) | 62.56 | 50.71 |
| Large (%) | 23.02 | 26.78 |
| Mid (%) | 14.06 | 21.08 |
| Small (%) | 0.36 | 1.68 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 122 | 219 |
| Macaulay Duration (yrs) | 0.17 | 0.34 |
| Average Maturity (yrs) | 0.17 | 0.36 |
| Yield to Maturity (%) | 6.84 | 7.12 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For NJ Arbitrage Fund
WILL Post Soon
Apply Online: https://investnow.njmutualfund.com/
>> Post your MF questions @ sahifund.com/ask-me/
>> NFO Guidance:
https://sahifund.com/category/nfos/
>> Chanakya’s Mutual Fund Guidance on YouTube
https://www.youtube.com/c/ChanakyaNiPothi
>> Join Chanakya MF’s Telegram Channel @
https://t.me/chanakyaMFGuidance
Quicklinks