February 1, 2024
mayank
Bank of India Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 13.0286
Yearly NAV IDCW: Rs 11.7866
NAV IDCW Quarterly: Rs 12.3849
Monthly NAV IDCW: Rs 11.7506
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 income through arbitrage opportunities between cash and derivative segments of the equity market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments.
Fund Manager:
1) Alok Singh
Education: Mr. Singh is a CFA and PGDBA from ICFAI Business School.
Experience: Prior to joining BOI AXA AMC he has worked with BNP Paribas Asset Management and Axis Bank
Investment Details
| Min. Investment (Rs) | 5,000 |
| 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) | — |
| Lock-in Period | NA |
| Exit Load | For units in excess of 10% of the investment, 0.5% will be charged for redemption Within 30 days |
Basic Details of Bank of India Arbitrage Fund
| Fund House | Bank of India Mutual Fund |
| Launch Date | 18-Jun-18 |
| Return Since Launch | 4.82% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 18 Cr |
| (As on 31-Dec-2023) | |
| Expense | 0.24% |
| (As on 31-Dec-2023) | |
| Risk Grade | High |
| Return Grade | Low |
| Turnover | — |
Trailing Returns (%) of Bank of India Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Bank of India Arbitrage Dir | 0.80 | 0.05 | 0.80 | 1.84 | 3.87 | 7.24 | 4.58 | 4.65 | — | — |
| CCIL T Bill Liquidity Weight | 0.37 | 0.00 | 0.37 | 1.20 | 2.21 | 4.51 | 3.10 | 3.28 | — | — |
| Hybrid: Arbitrage | 0.88 | 0.03 | 0.88 | 2.01 | 4.16 | 8.11 | 5.71 | 5.62 | — | — |
| Rank within category | 25 | 2 | 25 | 25 | 24 | 24 | 24 | 20 | — | — |
| Number of funds in category | 27 | 27 | 27 | 26 | 25 | 25 | 24 | 20 | 16 | 9 |
Peer Comparison of Bank of India 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 (%) | |
| Bank of India Arbitrage Dir | 1 star | 7.24 | 4.58 | 4.65 | 0.24 | 18 | 4.82 | 0.50 (30) | 5Y 7M | — |
| Kotak Eqt Arbtg Dir | 4 star | 8.55 | 6.13 | 5.90 | 0.43 | 34,593 | 7.00 | 0.25 (30) | 11Y 1M | 1944.31 |
| Nippon Ind Arbtg Dir | 4 star | 8.35 | 6.01 | 5.91 | 0.39 | 12,061 | 7.03 | 0.25 (30) | 11Y 1M | 1308.00 |
| Invesco India Arbitrage Dir | 5 star | 8.50 | 6.25 | 5.99 | 0.37 | 11,885 | 6.84 | 0.50 (15) | 11Y 1M | 1811.00 |
| Tata Arbtg Dir | 4 star | 8.37 | 6.01 | 6.10 | 0.30 | 8,740 | 6.11 | 0.25 (30) | 5Y 1M | 541.19 |
Portfolio Analysis of Bank of India Arbitrage Fund
| No. of Stocks | 24 |
| Top 10 Holdings | 67.73% |
| Top 5 Stocks | 44.99% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 1.97 |
| Portfolio P/E Ratio | 10.86 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,52,054 | 1,28,128 |
| Giant (%) | 47.47 | 38.62 |
| Large (%) | 30.18 | 31.74 |
| Mid (%) | 22.35 | 27.84 |
| Small (%) | — | 2.20 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 51 | 198 |
| Macaulay Duration (yrs) | 0.44 | 0.26 |
| Average Maturity (yrs) | 0.44 | 0.27 |
| Yield to Maturity (%) | 7.24 | 7.27 |
| Avg Credit Rating | GOI/Cash | — |
How to Invest in Bank of India Arbitrage Fund?
Chanakya’s Mutual Fund Guidance For Bank of India Arbitrage Fund
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