July 26, 2022
mayank
Invesco India Arbitrage Fund Guidance
NAV Growth : Rs 27.6122
NAV IDCW : Rs 14.9938
NAV Annual Bonus : Rs 27.6087
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 fund aims to generate income by cashing in on arbitrage opportunities emerging out of pricing mismatch between the cash market and the derivatives market.
Fund Manager :
— Deepak Gupta
Education : Mr. Gupta is a CA, CWA, Cleared CFA level III (AIMR, USA).
Experience : Prior to joining Invesco Asset Management (India) Pvt. Ltd., He has worked with Emkay Global Financial Services Ltd. and Kotak Asset Management Company Ltd.
Investment Details
| Min. Investment (Rs) | 1,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. Balance (Rs) | — |
| Lock-in Period | Not Applicable |
| Exit Load | 0.5% for redemption within 15 days |
Basic Details
| Fund House: | Invesco Mutual Fund |
| Launch Date: | 01-Jan-13 |
| Return Since Launch: | 6.69% |
| Benchmark: | NIFTY 50 Arbitrage TRI |
| Riskometer: | Low |
| Type: | Open-ended |
| % Assets: | Rs 1,095 Cr |
| (As on 30-Jun-2022) | |
| Expense: | 0.36% |
| (As on 30-Jun-2022) | |
| Risk Grade: | Average |
| Return Grade: | Average |
| Turnover: | 1721.00% |
Invesco India Arbitrage Fund Guidance Trailing Returns (%)
| YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y | |
| Invesco India Arbitrage Direct-G | 2.89 | -0.03 | 0.14 | 0.36 | 1.08 | 2.44 | 4.44 | 4.89 | 5.62 | 5.92 | — |
| CCIL T Bill Liquidity Weight | 1.05 | -0.01 | 0.03 | 0.21 | 0.44 | 0.94 | 1.95 | 2.63 | 3.28 | 3.64 | — |
| Hybrid: Arbitrage | 2.16 | -0.02 | 0.12 | 0.3 | 0.79 | 1.8 | 3.71 | 4.48 | 5.32 | 5.82 | — |
| Rank within category | 1 | 18 | 5 | 1 | 1 | 1 | 2 | 3 | 6 | 6 | — |
| Number of funds in category | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 22 | 17 | 15 | 0 |
Invesco India Arbitrage Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| Invesco India Arbitrage Fund | 4 star | Jan-13 | 4.44 | 4.89 | 5.62 | 0.36 | 1,095 |
| Kotak Equity Arbitrage Fund | 4 star | Jan-13 | 4.21 | 4.83 | 5.65 | 0.44 | 25,789 |
| Nippon India Arbitrage Fund | 4 star | Jan-13 | 4.12 | 4.83 | 5.8 | 0.34 | 10,809 |
| Tata Arbitrage Fund | 5 star | Dec-18 | 3.93 | 5.09 | — | 0.29 | 8,386 |
| Edelweiss Arbitrage Fund | 5 star | Jun-14 | 4.26 | 4.99 | 5.8 | 0.35 | 6,993 |
Portfolio Analysis
| Number of Stocks | 132 |
| Top 10 Holdings (%) | 43.49 |
| Top 5 Holdings (%) | 32.05 |
| Top 3 Sectors (%) | 0.04 |
| Portfolio P/B Ratio | 2.05 |
| Portfolio P/E Ratio | 17.83 |
| Avg Credit Rating | GOI/Cash |
Invesco India Arbitrage Fund Guidance by Chanakya :
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