June 9, 2023
mayank
Groww Arbitrage Fund
NAV Growth: Rs 16.0628
NAV IDCW Yearly: Rs 12.6833
NAV IDCW Quarterly: Rs 12.7150
NAV IDCW Monthly: Rs 11.7952
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 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) Kaustubh Sule
Education: Mr. Sule is a B.E. (Computer Engineering) & MBA (Finance)
Experience: Prior to joining Groww Mutual Fund (formerly, Indiabulls Mutual Fund), he has worked with Axis Asset Management Company Ltd. HDFC Standard Life Insurance Company Ltd., Reliance Life Insurance Company Ltd., Union Bank of India, Hexaware Technologies Ltd.
2) Anupam Tiwari
Education: Mr. Tiwari is a Chartered Accountant.
Experience: Prior to joining Groww Mutual Fund (formerly, Indiabulls Mutual Fund), he was associated with Axis Mutual Fund, Principal Mutual Fund (July 25, 2011-Sep 21, 2016), Reliance Life Insurance Ltd. (Sep 22, 2010-Jul 15, 2011) and Reliance MF (Mar 21, 2005-Sep 21, 2010).
3) Karan Singh
Education: Mr. Singh is B.A (Honours) in Economics, PGDBF & CFA – Level 1
Experience: Prior to joining Groww Mutual Fund (formerly Indiabulls Mutual Fund) he has worked with Taurus Corporate Advisory Services Ltd., DIOS Capital, Invesco Asset Management Company Ltd., Fidelity Investments and ICRA Ltd.
Investment Details
| Min. Investment (Rs) | 500 |
| Min. Addl Investment (Rs) | 500 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | 5,000 |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption within 30 days |
Basic Details
| Fund House | Groww Mutual Fund |
| Launch Date | 19-Dec-14 |
| Return Since Launch | 5.75% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 4 Cr |
| (As on 31-May-2023) | |
| Expense | 0.58% |
| (As on 30-Apr-2023) | |
| Risk Grade | Above Average |
| Return Grade | Low |
| Turnover | 943.00% |
Groww Arbitrage Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Groww Arbitrage Dir | 2.59 | -0.02 | 0.51 | 1.50 | 3.24 | 4.90 | 3.48 | 4.53 | 5.20 | — |
| CCIL T Bill Liquidity Weight | 1.88 | 0.01 | 0.50 | 1.39 | 2.20 | 3.80 | 2.61 | 3.28 | 3.53 | — |
| Hybrid: Arbitrage | 3.20 | 0.08 | 0.70 | 1.87 | 3.91 | 6.15 | 4.64 | 5.33 | 5.70 | — |
| Rank within category | 26 | 26 | 26 | 26 | 26 | 24 | 23 | 17 | 14 | — |
| Number of funds in category | 26 | 26 | 26 | 26 | 26 | 25 | 23 | 18 | 16 | 9 |
Groww Arbitrage Fund Peer Comparison
| 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 (%) | |
| Groww Arbitrage Dir | 2 star | 4.90 | 3.48 | 4.53 | 0.58 | 4 | 5.75 | 0.25 (30) | 8yrs 5mo | 943.00 |
| Kotak Eqt Arbtg Dir | 4 star | 6.57 | 5.07 | 5.68 | 0.43 | 20,587 | 6.91 | 0.25 (30) | 10yrs 5mo | 1793.66 |
| Nippon Ind Arbtg Dir | 4 star | 6.47 | 5.02 | 5.73 | 0.34 | 8,946 | 6.95 | 0.25 (30) | 10yrs 5mo | 1204.18 |
| Tata Arbitrage Dir | 5 star | 6.53 | 5.08 | — | 0.29 | 5,762 | 5.79 | 0.25 (30) | 4yrs 5mo | 485.23 |
| Edelweiss Arbitrage Dir | 5 star | 6.55 | 5.05 | 5.81 | 0.38 | 5,082 | 6.59 | 0.10 (30) | 8yrs 11mo | 366.00 |
Portfolio Analysis
| No. of Stocks | 11 |
| Top 10 Holdings | 64.20% |
| Top 5 Stocks | 40.06% |
| Top 3 Sectors | 0.02% |
| Portfolio P/B Ratio | 3.15 |
| Portfolio P/E Ratio | 25.53 |
| Avg Credit Rating | Cash |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,32,541 | 1,21,577 |
| Giant (%) | 56.37 | 41.85 |
| Large (%) | 15.56 | 25.72 |
| Mid (%) | 12.48 | 27.83 |
| Small (%) | 15.59 | 7.84 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 24 | 167 |
| Modified Duration (yrs) | — | — |
| Average Maturity (yrs) | — | — |
| Yield to Maturity (%) | — | — |
| Avg Credit Rating | Cash | — |
Chanakya’s Mutual Fund Guidance For Groww Arbitrage Fund
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