March 29, 2024
mayank
HDFC Arbitrage Fund-Wholesale details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 18.3640
Monthly NAV IDCW: Rs 10.9080
NAV IDCW: Rs 11.2520
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 and debt & money market instruments.
Fund Manager:
1) Anil Bamboli
Education: Mr. Bamboli is a CFA from Association for Investment Management and Research, U.S.A, Masters in Management Studies (Finance) and a Graduate in Cost and Works Accountant from ICWAI.
Experience: Prior to joining HDFC AMC he has worked with SBI Fund Management for 11 years.
2) Arun Agarwal
Education: Mr. Agarwal is a B.Com. and Chartered Accountant
Experience: Prior to joining HDFC Asset Management Company Limited, he has worked with SBI Funds Management Pvt. Ltd., ICICI Bank Limited, UTI Asset Management Pvt. Ltd.
3) Nirman S. Morakhia
Education: Mr. Morakhia has done BMS and MBA – Financial Markets
Experience: Prior to joining HDFC Mutual Fund, he has worked with Mirae Asset Global Investment Management India Pvt. Ltd.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption Within 30 days |
Basic Details
| Fund House | HDFC Mutual Fund |
| Launch Date | 07-Apr-14 |
| Return Since Launch | 6.28% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 10,994 Cr |
| (As on 29-Feb-2024) | |
| Expense | 0.42% |
| (As on 29-Feb-2024) | |
| Risk Grade | Above Average |
| Return Grade | Below Average |
| Turnover | 402.53% |
Trailing Returns (%) of HDFC Arbitrage Fund-Wholesale
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| HDFC Arbitrage Dir | 2.15 | 0.09 | 0.66 | 2.15 | 3.97 | 8.09 | 5.98 | 5.62 | 5.76 | — |
| CCIL T Bill Liquidity Weight | 1.08 | 0.04 | 0.31 | 1.08 | 2.23 | 4.59 | 3.22 | 3.26 | 3.52 | — |
| Hybrid: Arbitrage | 2.14 | 0.08 | 0.64 | 2.14 | 3.92 | 8.04 | 5.91 | 5.70 | 5.89 | — |
| Rank within category | 18 | 10 | 7 | 18 | 14 | 17 | 13 | 16 | 13 | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 26 | 25 | 24 | 21 | 16 | 9 |
Peer Comparison of HDFC Arbitrage Fund-Wholesale
| 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 (%) | |
| HDFC Arbitrage Dir | 2 star | 8.09 | 5.98 | 5.62 | 0.42 | 10,994 | 6.28 | 0.25 (30) | 9Y 11M | 402.53 |
| Kotak Equity Arbitrage Dir | 4 star | 8.46 | 6.33 | 5.99 | 0.43 | 39,099 | 7.03 | 0.25 (30) | 11Y 2M | 2013.85 |
| Invesco India Arbitrage Dir | 5 star | 8.33 | 6.46 | 6.07 | 0.37 | 14,593 | 6.87 | 0.50 (15) | 11Y 2M | 1820.00 |
| Nippon India Arbitrage Dir | 4 star | 8.26 | 6.20 | 5.95 | 0.39 | 13,854 | 7.05 | 0.25 (30) | 11Y 2M | 1054.00 |
| ABSL Arbitrage Dir | 4 star | 8.27 | 6.13 | 5.88 | 0.34 | 10,668 | 6.91 | 0.25 (15) | 11Y 2M | 1548.00 |
Portfolio Analysis of HDFC Arbitrage Fund-Wholesale
| No. of Stocks | 134 |
| Top 10 Holdings | 48.05% |
| Top 5 Stocks | 37.03% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.81 |
| Portfolio P/E Ratio | 20.00 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 2,35,444 | 1,77,710 |
| Giant (%) | 57.64 | 47.84 |
| Large (%) | 24.14 | 28.56 |
| Mid (%) | 16.99 | 23.01 |
| Small (%) | 1.23 | 1.76 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 267 | 199 |
| Macaulay Duration (yrs) | 0.17 | 0.31 |
| Average Maturity (yrs) | 0.17 | 0.31 |
| Yield to Maturity (%) | 7.05 | 7.27 |
| Avg Credit Rating | GOI/Cash | — |
How to Invest in HDFC Arbitrage Fund-Wholesale?
Chanakya’s Mutual Fund Guidance For HDFC Arbitrage Fund-Wholesale
Apply Online: https://investor-web.hdfcfund.com/
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