February 12, 2024
mayank
Bandhan Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 31.5977
Yearly NAV IDCW: Rs 12.7764
NAV IDCW Monthly: Rs 14.0951
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 aims to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
Fund Manager:
1) Nemish Sheth
Education: Mr. Sheth is a B.Com, PGDM(FINANCE)
Experience: Prior to joining Bandhan Mutual Fund (formerly IDFC Mutual Fund), he has worked with Nippon Life India Asset Management Ltd. and ICICI Prudential Asset Management Company Ltd.
2) Harshal Joshi
Education: Mr. Joshi is PGDBM from N.L. Dalmia Institute of Management Studies and Research, Mumbai
Experience: Prior to joining Bandhan Mutual Fund (formerly IDFC Mutual Fund) in 2008 he has worked with ICAP India Pvt. Ltd.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption Within 30 days |
Basic Details
| Fund House | Bandhan Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 6.85% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 5,374 Cr |
| (As on 31-Jan-2024) | |
| Expense | 0.37% |
| (As on 31-Dec-2023) | |
| Risk Grade | Average |
| Return Grade | Average |
| Turnover | 494.00% |
Trailing Returns (%) of Bandhan Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Bandhan Arbitrage Dir | 1.14 | 0.06 | 0.73 | 2.13 | 4.19 | 8.21 | 5.90 | 5.74 | 6.04 | 6.54 |
| CCIL T Bill Liquidity Weight | 0.53 | 0.03 | 0.36 | 1.20 | 2.28 | 4.63 | 3.14 | 3.27 | 3.53 | 4.03 |
| Hybrid: Arbitrage | 1.11 | 0.05 | 0.71 | 2.07 | 4.11 | 7.98 | 5.74 | 5.63 | 5.88 | 6.51 |
| Rank within category | 11 | 10 | 10 | 6 | 9 | 8 | 11 | 11 | 9 | 6 |
| Number of funds in category | 27 | 27 | 27 | 27 | 25 | 25 | 24 | 20 | 16 | 9 |
Peer Comparison of Bandhan 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 (%) | |
| Bandhan Arbitrage Dir | 3 star | 8.21 | 5.90 | 5.74 | 0.37 | 5,374 | 6.85 | 0.25 (30) | 11Y 1M | 494.00 |
| Kotak Equity Arbitrage Dir | 4 star | 8.42 | 6.16 | 5.92 | 0.43 | 35,998 | 7.01 | 0.25 (30) | 11Y 1M | 1988.17 |
| Nippon India Arbitrage Dir | 4 star | 8.21 | 6.04 | 5.91 | 0.39 | 13,073 | 7.03 | 0.25 (30) | 11Y 1M | 1308.00 |
| Invesco India Arbitrage Dir | 5 star | 8.34 | 6.29 | 6.00 | 0.37 | 12,884 | 6.85 | 0.50 (15) | 11Y 1M | 1811.00 |
| ABSL Arbitrage Dir | 4 star | 8.20 | 5.98 | 5.82 | 0.36 | 9,798 | 6.89 | 0.25 (15) | 11Y 1M | 1490.00 |
Portfolio Analysis of Bandhan Arbitrage Fund
| No. of Stocks | 153 |
| Top 10 Holdings | 37.17% |
| Top 5 Stocks | 26.07% |
| Top 3 Sectors | 0.02% |
| Portfolio P/B Ratio | 2.85 |
| Portfolio P/E Ratio | 19.71 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,45,178 | 1,54,565 |
| Giant (%) | 42.15 | 44.92 |
| Large (%) | 33.86 | 30.87 |
| Mid (%) | 21.98 | 23.09 |
| Small (%) | 2.01 | 2.55 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 354 | 187 |
| Macaulay Duration (yrs) | — | — |
| Average Maturity (yrs) | — | — |
| Yield to Maturity (%) | — | — |
| Avg Credit Rating | GOI/Cash | — |
How to Invest in Bandhan Arbitrage Fund?
Chanakya’s Mutual Fund Guidance For Bandhan Arbitrage Fund
Apply Online: https://bandhanmutual.com/mutual-funds
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