March 13, 2024
mayank
DSP Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 14.1940
Monthly NAV IDCW: Rs 12.2870
NAV IDCW: Rs 11.7940
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 market and arbitrage opportunities within the derivative market.
Fund Manager:
1) Abhishek Singh
Education: Mr. Singh is a B-Tech, IIT Kanpur PGDM, IIM Lucknow
Experience: Prior to joining DSP Mutual Fund he has worked with EdelCap Securities Limited, Systematic Trading Division. Kotak Securities Limited, Proprietary Trading and Structured Products Division. Kotak Mahindra Investments Limited, Structured Products Division.
2) Kedar Karnik
Education: Mr. Karnik is a BE and has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies.
Experience: Prior to joining DSP Mutual Fund he was associated with Axis Asset Management. He has also worked with HSBC and CRISIL Ltd..
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | — |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | NA |
| Exit Load | For units in excess of 10% of the investment, 0.25% will be charged for redemption Within 30 days |
Basic Details
| Fund House | DSP Mutual Fund |
| Launch Date | 25-Jan-18 |
| Return Since Launch | 5.88% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 4,024 Cr |
| (As on 29-Feb-2024) | |
| Expense | 0.35% |
| (As on 31-Jan-2024) | |
| Risk Grade | Average |
| Return Grade | Below Average |
| Turnover | 1217.00% |
Trailing Returns (%) of DSP Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| DSP Arbitrage Dir | 1.74 | -0.06 | 0.53 | 2.20 | 3.84 | 8.10 | 5.90 | 5.72 | — | — |
| CCIL T Bill Liquidity Weight | 0.91 | 0.01 | 0.38 | 1.23 | 2.31 | 4.80 | 3.20 | 3.29 | — | — |
| Hybrid: Arbitrage | 1.70 | -0.06 | 0.51 | 2.18 | 3.82 | 7.95 | 5.85 | 5.66 | — | — |
| Rank within category | 11 | 6 | 12 | 15 | 15 | 11 | 14 | 13 | — | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 25 | 25 | 24 | 21 | 16 | 9 |
Peer Comparison of DSP 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 (%) | |
| DSP Arbitrage Dir | 3 star | 8.10 | 5.90 | 5.72 | 0.35 | 4,024 | 5.88 | 0.25 (30) | 6Y 1M | 1,217.00 |
| Kotak Equity Arbitrage Dir | 4 star | 8.38 | 6.27 | 5.97 | 0.43 | 39,099 | 7.01 | 0.25 (30) | 11Y 2M | 2,013.85 |
| Invesco India Arbitrage Dir | 5 star | 8.31 | 6.40 | 6.03 | 0.37 | 14,593 | 6.85 | 0.50 (15) | 11Y 2M | 1,812.00 |
| Nippon India Arbitrage Dir | 4 star | 8.19 | 6.13 | 5.93 | 0.39 | 13,854 | 7.04 | 0.25 (30) | 11Y 2M | 1,177.00 |
| ABSL Arbitrage Dir | 4 star | 8.18 | 6.07 | 5.85 | 0.35 | 10,668 | 6.89 | 0.25 (15) | 11Y 2M | 1,543.00 |
Portfolio Analysis of DSP Arbitrage Fund
| No. of Stocks | 139 |
| Top 10 Holdings | 40.62% |
| Top 5 Stocks | 29.17% |
| Top 3 Sectors | 1.52% |
| Portfolio P/B Ratio | 2.36 |
| Portfolio P/E Ratio | 17.35 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,13,710 | 1,77,710 |
| Giant (%) | 35.81 | 47.84 |
| Large (%) | 25.80 | 28.56 |
| Mid (%) | 34.76 | 23.01 |
| Small (%) | 3.63 | 1.76 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 287 | 199 |
| Macaulay Duration (yrs) | 0.27 | 0.28 |
| Average Maturity (yrs) | 0.23 | 0.29 |
| Yield to Maturity (%) | 7.82 | 7.33 |
| Avg Credit Rating | GOI/Cash | — |
How to Invest in DSP Arbitrage Fund?
Chanakya’s Mutual Fund Guidance For DSP Arbitrage Fund
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