February 28, 2024
mayank
Edelweiss Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 18.7873
Monthly NAV IDCW: Rs 15.4339
NAV IDCW: Rs 13.4309
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 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) Bhavesh Jain
Education: Mr. Jain is a MMS (Finance) from Mumbai University.
Experience: Prior to joining Edelweiss Mutual Fund he was previously associated with Edelweiss Securities Limited as SGX Nifty Arbitrage Trader.
2) Bhavin Patadia
Education: Mr. Patadia is MFM and B.E. (Computer Engg.)
Experience: Prior to Joining Edelweiss MUtual Fund, he has worked with IDFC Mutual Fund, Standard Chartered Securities as Fund Manager in PMS activities and Angel Broking Ltd. in Equity research.
3) Dhawal Dalal
Education: Mr. Dalal is a B.E and MBA.
Experience: Prior to joining Edelweiss AMC he has worked with DSP Mutual Fund, Merrill Lynch Asset Management, Private Client Group and MLAM.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 1 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.1% for redemption Within 30 days |
Basic Details
| Fund House | Edelweiss Mutual Fund |
| Launch Date | 27-Jun-14 |
| Return Since Launch | 6.73% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 8,135 Cr |
| (As on 31-Jan-2024) | |
| Expense | 0.39% |
| (As on 31-Jan-2024) | |
| Risk Grade | Low |
| Return Grade | High |
| Turnover | — |
Trailing Returns (%) of Edelweiss Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Edelweiss Arbitrage Dir | 1.63 | 0.06 | 0.83 | 2.29 | 4.16 | 8.36 | 6.21 | 6.05 | 6.24 | — |
| CCIL T Bill Liquidity Weight | 0.72 | 0.03 | 0.39 | 1.21 | 2.29 | 4.74 | 3.16 | 3.28 | 3.53 | — |
| Hybrid: Arbitrage | 1.49 | 0.07 | 0.70 | 2.13 | 3.99 | 8.03 | 5.82 | 5.65 | 5.87 | — |
| Rank within category | 1 | 22 | 1 | 1 | 2 | 3 | 3 | 2 | 1 | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 25 | 25 | 24 | 21 | 16 | 9 |
Peer Comparison of Edelweiss 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 (%) | |
| Edelweiss Arbitrage Dir | 5 star | 8.36 | 6.21 | 6.05 | 0.39 | 8,135 | 6.73 | 0.10 (30) | 9Y 8M | 381.00 |
| Kotak Equity Arbitrage Dir | 4 star | 8.46 | 6.23 | 5.95 | 0.43 | 35,998 | 7.02 | 0.25 (30) | 11Y 1M | 1988.17 |
| Nippon India Arbitrage Dir | 4 star | 8.28 | 6.11 | 5.93 | 0.39 | 13,073 | 7.04 | 0.25 (30) | 11Y 1M | 1177.00 |
| Invesco India Arbitrage Dir | 5 star | 8.38 | 6.35 | 6.03 | 0.37 | 12,849 | 6.86 | 0.50 (15) | 11Y 1M | 1812.00 |
| ABSL Arbitrage Dir | 4 star | 8.23 | 6.05 | 5.84 | 0.35 | 9,798 | 6.90 | 0.25 (15) | 11Y 1M | 1543.00 |
Portfolio Analysis of Edelweiss Arbitrage Fund
| No. of Stocks | 162 |
| Top 10 Holdings | 26.31% |
| Top 5 Stocks | 17.29% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.36 |
| Portfolio P/E Ratio | 16.20 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,19,118 | 1,56,919 |
| Giant (%) | 38.66 | 45.16 |
| Large (%) | 32.05 | 30.83 |
| Mid (%) | 27.88 | 22.85 |
| Small (%) | 1.41 | 2.47 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 358 | 202 |
| Macaulay Duration (yrs) | 0.40 | 0.28 |
| Average Maturity (yrs) | 0.38 | 0.29 |
| Yield to Maturity (%) | 7.40 | 7.33 |
| Avg Credit Rating | GOI/Cash | — |
How to Invest in Edelweiss Arbitrage Fund?
Chanakya’s Mutual Fund Guidance For Edelweiss Arbitrage Fund
Apply Online: https://invest.edelweissmf.com/home?distributoruuid=b9111455-759f-4eb8-bc2a-13927f656230
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