June 25, 2024
mayank
Parag Parikh Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 10.5136
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) Rajeev Thakkar
Education: Mr.Thakkar is a Chartered Accountant, Cost Accountant, CFA, and CFP.
Experience: He has been associated with PPFAS AMC since 2013.
2) Raunak Onkar
Education: Mr.Onkar is an MMS (Finance) from the University of Mumbai.
Experience: He joined PPFAS as a research analyst. He was appointed as Head- research in the year 2011. He is working with the company as an Associate Fund Manager.
3) Rukun Tarachandani
Education: Mr. Tarachandani has done B Tech (Information Technology), PGPM (Finance), CFA and CQF.
Experience: Prior to joining PPFAS Mutual Fund, he has worked with Kotak Mutual Fund, Goldman Sachs, Unnati Investment Management & Research Group.
4) Mansi Kariya
Education: Ms. Karia has done B.Com, MS Finance and CFA
Experience: Prior to joining PPFAS AMC, she has worked with Insync and Zacks Investment Research
5) Raj Mehta
Education: Mr. Mehta is a Commerce Graduate from University of Mumbai (N.M. College) ; Fellow Member of Institute of Chartered Accountants of India (ICAI) ; CFA Charter Holder.
Experience: Beginning his career as an intern with PPFAS Mutual Fund in 2012, he swiftly moved up the ranks, and is currently part of the Fund Management team.
Investment Details
| Min. Investment (Rs) | 1,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Exit Load | 0.25% for redemption within 30 days |
| Lock-in Period | NA |
Basic Details
| Fund House | PPFAS Mutual Fund |
| Launch Date | 02-Nov-23 |
| Return Since Launch | 5.14% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 718 Cr |
| (As on 31-May-2024) | |
| Expense | 0.35% |
| (As on 31-May-2024) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | — |
Trailing Returns (%) of Parag Parikh Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Parag Parikh Arbitrage Dir | 3.95 | -0.03 | 0.71 | 2.12 | 4.12 | — | — | — | — | — |
| CCIL T Bill Liquidity Weight | 2.19 | -0.01 | 0.37 | 1.12 | 2.27 | — | — | — | — | — |
| Hybrid: Arbitrage | 4.13 | -0.02 | 0.71 | 2.16 | 4.30 | — | — | — | — | — |
| Rank within category | 22 | 24 | 18 | 21 | 21 | — | — | — | — | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 27 | 25 | 24 | 21 | 16 | 10 |
Peer Comparison of Parag Parikh 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 (%) | |
| Parag Parikh Arbitrage Dir | Unrated | — | — | — | 0.35 | 718 | 5.14 | 0.25 (30) | 7M | — |
| Kotak Equity Arbitrage Dir | 4 star | 8.59 | 6.57 | 6.04 | 0.43 | 46,308 | 7.06 | 0.25 (30) | 11Y 5M | 2036.92 |
| Invesco India Arbitrage Dir | 5 star | 8.45 | 6.71 | 6.12 | 0.39 | 16,105 | 6.90 | 0.50 (15) | 11Y 5M | 1796.00 |
| Nippon India Arbitrage Dir | 4 star | 8.34 | 6.41 | 5.97 | 0.38 | 15,158 | 7.08 | 0.25 (30) | 11Y 5M | 1345.00 |
| ABSL Arbitrage Dir | 4 star | 8.34 | 6.34 | 5.89 | 0.32 | 12,684 | 6.94 | 0.25 (15) | 11Y 5M | 1534.00 |
Portfolio Analysis of Parag Parikh Arbitrage Fund
| No. of Stocks | 101 |
| Top 10 Holdings | 38.35% |
| Top 5 Stocks | 27.16% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.33 |
| Portfolio P/E Ratio | 16.26 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,75,805 | 1,86,538 |
| Giant (%) | 51.51 | 50.71 |
| Large (%) | 26.55 | 26.78 |
| Mid (%) | 19.07 | 21.08 |
| Small (%) | 2.87 | 1.68 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 210 | 219 |
| Macaulay Duration (yrs) | 0.19 | 0.34 |
| Average Maturity (yrs) | 0.19 | 0.36 |
| Yield to Maturity (%) | 7.02 | 7.12 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For Parag Parikh Arbitrage Fund
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