August 14, 2024
mayank
ITI Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 12.6962
NAV IDCW: Rs 12.6962
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) Vikrant Mehta
Education: Mr. Mehta is CFA and M.S.
Experience: Prior to joining ITI Mutual Fund, he has worked with Indiabulls AMC, Kotak Mahindra Mutual Fund, AIG India Liaison Office, NVS Brokerage Pvt. Ltd., JM Morgan Stanley Fixed Income Securities Pvt. Ltd. and Mata Securities India Pvt. Ltd.
2) Vikas Nathani
Education: Mr. Nathani has done M.Com. and DBF
Experience: Prior to joining ITI AMC, he was associated with SBICAP Securities Limited
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption within 30 days |
Basic Detailsof ITI Arbitrage Fund
| Fund House | ITI Mutual Fund |
| Launch Date | 09-Sep-19 |
| Return Since Launch | 4.96% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 37 Cr |
| (As on 31-Jul-2024) | |
| Expense | 0.21% |
| (As on 30-Jun-2024) | |
| Risk Grade | High |
| Return Grade | Low |
| Turnover | — |
Trailing Returns (%) of ITI Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| ITI Arbitrage Dir | 5.32 | 0.06 | 0.60 | 2.14 | 4.13 | 8.25 | 5.55 | — | — | — |
| CCIL T Bill Liquidity Weight | 3.00 | 0.04 | 0.47 | 1.37 | 2.44 | 4.71 | 3.58 | — | — | — |
| Hybrid: Arbitrage | 5.28 | 0.07 | 0.64 | 2.15 | 4.10 | 8.27 | 6.32 | — | — | — |
| Rank within category | 17 | 24 | 24 | 18 | 15 | 18 | 22 | — | — | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 27 | 25 | 24 | 21 | 16 | 12 |
Peer Comparison of ITI Arbitrage Fund
| Fund name | 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 (%) |
| ITI Arbitrage Dir | 1 star | 8.25 | 5.55 | — | 0.21 | 37 | 4.96 | 0.25 (30) | 4Y 11M | — |
| Kotak Equity Arbitrage Dir | 4 star | 8.67 | 6.73 | 6.04 | 0.43 | 51,570 | 7.08 | 0.25 (30) | 11Y 7M | 2081.23 |
| Invesco India Arbitrage Dir | 5 star | 8.53 | 6.88 | 6.13 | 0.39 | 17,654 | 6.92 | 0.50 (15) | 11Y 7M | 1796.00 |
| Nippon India Arbitrage Dir | 4 star | 8.40 | 6.58 | 5.97 | 0.37 | 15,617 | 7.09 | 0.25 (30) | 11Y 7M | 1374.00 |
| ABSL Arbitrage Dir | 4 star | 8.44 | 6.50 | 5.90 | 0.29 | 13,209 | 6.96 | 0.25 (15) | 11Y 7M | 1516.00 |
Portfolio Analysis of ITI Arbitrage Fund
| No. of Stocks | 31 |
| Top 10 Holdings | 53.85% |
| Top 5 Stocks | 36.29% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.56 |
| Portfolio P/E Ratio | 19.32 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 2,04,545 | 1,91,587 |
| Giant (%) | 58.93 | 47.35 |
| Large (%) | 16.44 | 33.45 |
| Mid (%) | 24.63 | 18.15 |
| Small (%) | — | 1.29 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 63 | 216 |
| Macaulay Duration (yrs) | — | — |
| Average Maturity (yrs) | — | — |
| Yield to Maturity (%) | — | — |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For ITI Arbitrage Fund
WILL Post Soon
Apply Online: https://investonline.itiamc.com/#/login
>> Post your MF questions @ sahifund.com/ask-me/
>> NFO Guidance:
https://sahifund.com/category/nfos/
>> Chanakya’s Mutual Fund Guidance on YouTube
https://www.youtube.com/c/ChanakyaNiPothi
>> Join Chanakya MF’s Telegram Channel @
https://t.me/chanakyaMFGuidance
Quicklinks