January 31, 2024
mayank
Bajaj Finserv Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 10.2870
NAV IDCW: Rs 10.2870
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 seek to generate returns by investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.
Fund Manager:
1) Chetan Chavan
Experience: Prior to joining Bajaj Finserv Mutual Fund, he was associated with Mahindra Manulife Investment Management Private Limited and Invesco Asset Management (India) Private Limited.
2) Ilesh Savla
Experience: Prior to joining Bajaj Finserv Mutual Fund, he has worked with Reliance Nippon Life Insurance, Equirus Securities and Maybank KimEng Securities.
3) Siddharth Chaudhary
Education: Mr. Chaudhary is a B.Com (H) and PGDM (Securities Markets).
Experience: Prior to joining Bajaj Finserv Mutual Fund, he has worked with Sundaram Mutual Fund and Indian Bank.
Investment Details
| Min. Investment (Rs) | 500 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 60 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption Within 15 days |
Basic Details of Bajaj Finserv Arbitrage Fund
| Fund House | Bajaj Finserv Mutual Fund |
| Launch Date | 15-Sep-23 |
| Return Since Launch | 2.87% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 349 Cr |
| (As on 31-Dec-2023) | |
| Expense | 0.29% |
| (As on 31-Dec-2023) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | — |
Trailing Returns (%) of Bajaj Finserv Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Bajaj FinServ Arbitrage Dir | 0.79 | 0.03 | 0.79 | 1.91 | — | — | — | — | — | — |
| CCIL T Bill Liquidity Weight | 0.37 | 0.05 | 0.37 | 1.16 | — | — | — | — | — | — |
| Hybrid: Arbitrage | 0.85 | 0.02 | 0.85 | 1.98 | — | — | — | — | — | — |
| Rank within category | 22 | 4 | 22 | 21 | — | — | — | — | — | — |
| Number of funds in category | 27 | 27 | 27 | 26 | 25 | 25 | 24 | 20 | 16 | 9 |
Peer Comparison of Bajaj Finserv 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 (%) | |
| Bajaj FinServ Arbitrage Dir | Unrated | — | — | — | 0.29 | 349 | 2.87 | 0.25 (15) | 4M | — |
| Kotak Eqt Arbtg Dir | 4 star | 8.40 | 6.13 | 5.90 | 0.43 | 34,593 | 7.00 | 0.25 (30) | 11Y | 1944.31 |
| Nippon Ind Arbtg Dir | 4 star | 8.18 | 6.01 | 5.90 | 0.39 | 12,061 | 7.03 | 0.25 (30) | 11Y | 1308.00 |
| Invesco Ind Arbtg Dir | 5 star | 8.36 | 6.25 | 5.98 | 0.37 | 11,885 | 6.84 | 0.50 (15) | 11Y | 1811.00 |
| Tata Arbtg Dir | 4 star | 8.22 | 6.01 | 6.10 | 0.30 | 8,740 | 6.11 | 0.25 (30) | 5Y 1M | 541.19 |
Portfolio Analysis of Bajaj Finserv Arbitrage Fund
| No. of Stocks | 35 |
| Top 10 Holdings | 69.45% |
| Top 5 Stocks | 50.96% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.82 |
| Portfolio P/E Ratio | 18.23 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,88,621 | 1,28,128 |
| Giant (%) | 50.12 | 38.62 |
| Large (%) | 30.36 | 31.74 |
| Mid (%) | 19.47 | 27.84 |
| Small (%) | 0.05 | 2.20 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 73 | 198 |
| Macaulay Duration (yrs) | 0.14 | 0.27 |
| Average Maturity (yrs) | 0.14 | 0.28 |
| Yield to Maturity (%) | 6.99 | 7.28 |
| Avg Credit Rating | GOI/Cash | — |
How to Invest in Bajaj Finserv Arbitrage Fund?
Chanakya’s Mutual Fund Guidance For Bajaj Finserv Arbitrage Fund
Apply Online: https://invest.bajajamc.com/mutual-fund/pan-entry or https://www.bajajamc.com/#bfl-explore-mutualfund
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