Capitalmind Arbitrage Fund Direct-Growth NFO

February 13, 2026 RA Jainee Leave a reply

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Capitalmind Arbitrage Fund – Direct | Growth

📌 Fund Snapshot & Key Details (Master Table)

⚖️ Sahifund NFO Review

PLUS

• Low-risk arbitrage category designed for stable income generation
• Tax-efficient alternative to liquid/ultra-short-term debt funds
• Suitable for parking funds during volatile equity markets
• Low benchmark volatility (Std. Dev ~1%) offers capital stability
• Ideal for short-to-medium-term allocation

MINUS

• Returns likely to remain in 6–7% range; not suited for high-growth expectations
• Arbitrage spreads compress when market volatility declines
• Highly strategy-driven — performance linked to execution efficiency
• Limited alpha potential vs equity-oriented funds
• Interest rate cycles and derivative liquidity can influence yields

Sahifund View
A low-volatility cash-management strategy best used as a tactical parking vehicle rather than a long-term wealth creator.

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⏱️ Last Updated: 13 February 2026, 10.00 AM

📊 Sahifund Interpretation of the Benchmark
NIFTY 50 Arbitrage TRI

The benchmark reflects returns generated through equity cash–futures arbitrage positions combined with short-term debt exposure. With near-month NIFTY futures (~65%) and MIBOR-linked debt (~30%), it behaves like a low-volatility hybrid strategy.

Benchmark Behaviour Snapshot

• Historically stable returns around 6–7% with minimal drawdowns
• Very low volatility profile compared to equity funds
• Performance driven by market spreads rather than directional equity moves
• Works best during periods of high derivatives activity and market inefficiencies

Sahifund Insight:
This benchmark behaves more like a tax-efficient short-term income strategy than a traditional equity index.

🧠 Investment Strategy – Explained Simply

The scheme seeks to generate income over short to medium term by exploiting arbitrage opportunities — buying stocks in cash market while selling equivalent futures, and deploying surplus funds into short-term debt instruments.

➡️ In simple words:
You get relatively stable returns from price differences rather than market direction.

👤 Fund Managers & Past Performance Interpretation

Anoop Vijaykumar – Engineering and MBA background with experience in technology firms like Microsoft and Honeywell. Brings analytical and systematic approach, which suits rule-based arbitrage strategies.

Prateek Jain – Strong fixed income and derivatives background with experience across Invesco AMC, Principal PNB AMC and Edelweiss. Expertise in debt markets is critical for managing arbitrage fund cash components.

Sahifund Interpretation:
Fund management experience leans toward systematic execution rather than aggressive stock-picking — suitable for arbitrage funds where process and efficiency matter more than discretionary calls.

🎯 Suitable for Which Investors?

Suitable if you:

• Want low-risk alternative to liquid or savings instruments
• Need short-term parking during volatile equity markets
• Prefer tax-efficient low-volatility strategies
• Are conservative investors seeking stability

Avoid if you:

• Expect double-digit returns or equity-like upside
• Have long-term wealth creation goals
• Prefer active equity allocation
• Are looking for high-growth thematic exposure

❓ Should You Invest in This NFO?

Yes — but only as a parking allocation, not as a core investment.

The Capitalmind Arbitrage Fund fits investors seeking stable, low-risk returns with equity taxation benefits. However, return expectations should remain modest, and allocations should be tactical rather than permanent.

Final Word:
A practical arbitrage strategy for liquidity management — useful for stability, not for aggressive wealth creation.

⚠️ Disclaimer
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.