July 29, 2024
mayank
JM Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 32.6378
Quarterly NAV Bonus: Rs 32.6949
Yearly NAV IDCW: Rs 14.8524
NAV IDCW: Rs 15.3801
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 aims to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments.
Fund Manager:
1) Asit Bhandarkar
Education: Mr. Bhandarkar is a B.Com (H) and MMS.
Experience: Prior to joining JM Financial he has worked with Lotus India AMC Pvt. Ltd. and SBI Funds Management Pvt. Ltd.
2) Chaitanya Choksi
Education: Mr. Choksi is a MMS (Finance) and CFA.
Experience: Prior to joining JM Financials he has worked with Lotus AMC, Chanrai Finance Pvt. Ltd, IL&FS Investmart and UTI Investment Advisory Services Ltd.
3) Gurvinder Singh Wasan
Education: Mr. Wasan is a Chartered Accountant, CFA and Master of Commerce from Mumbai University.
Experience: Prior to joining JM Mutual Fund, he has worked with Principal Mutual Fund, Crisil Ltd. and ICICI Bank Ltd.
Investment Details
| Min. Investment (Rs) | 1,000 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | 5,000 |
| Lock-in Period | NA |
| Exit Load | 0.5% for redemption within 30 days |
Basic Details of JM Arbitrage Fund
| Fund House | JM Financial Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 6.37% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 152 Cr |
| (As on 30-Jun-2024) | |
| Expense | 0.37% |
| (As on 30-Jun-2024) | |
| Risk Grade | Above Average |
| Return Grade | Low |
| Turnover | 1504.11% |
Trailing Returns (%) of JM Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| JM Arbitrage Dir | 4.81 | 0.01 | 0.59 | 2.04 | 3.92 | 8.17 | 6.03 | 4.99 | 5.27 | 5.84 |
| CCIL T Bill Liquidity Weight | 2.75 | 0.05 | 0.51 | 1.30 | 2.41 | 4.69 | 3.55 | 3.31 | 3.58 | 3.98 |
| Hybrid: Arbitrage | 4.86 | 0.03 | 0.64 | 2.09 | 4.04 | 8.30 | 6.25 | 5.74 | 6.00 | 6.48 |
| Rank within category | 19 | 23 | 23 | 21 | 19 | 19 | 20 | 20 | 15 | 12 |
| Number of funds in category | 27 | 27 | 27 | 27 | 27 | 25 | 24 | 21 | 16 | 12 |
Peer Comparison of JM 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 (%) | |
| JM Arbitrage Dir | 2 star | 8.17 | 6.03 | 4.99 | 0.37 | 152 | 6.37 | 0.50 (30) | 11Y 6M | 1504.11 |
| Kotak Equity Arbitrage Dir | 4 star | 8.73 | 6.68 | 6.06 | 0.43 | 48,000 | 7.08 | 0.25 (30) | 11Y 6M | 2081.23 |
| Invesco India Arbitrage Dir | 5 star | 8.58 | 6.82 | 6.13 | 0.39 | 16,490 | 6.92 | 0.50 (15) | 11Y 6M | 1796.00 |
| Nippon India Arbitrage Dir | 4 star | 8.46 | 6.52 | 5.98 | 0.37 | 15,072 | 7.09 | 0.25 (30) | 11Y 6M | 1374.00 |
| ABSL Arbitrage Dir | 4 star | 8.50 | 6.44 | 5.91 | 0.29 | 12,158 | 6.95 | 0.25 (15) | 11Y 6M | 1516.00 |
Portfolio Analysis of JM Arbitrage Fund
| No. of Stocks | 62 |
| Top 10 Holdings | 36.14% |
| Top 5 Stocks | 22.52% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 4.08 |
| Portfolio P/E Ratio | 26.22 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 99,549 | 1,75,874 |
| Giant (%) | 32.65 | 46.33 |
| Large (%) | 32.21 | 32.28 |
| Mid (%) | 32.81 | 20.47 |
| Small (%) | 2.33 | 1.13 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 142 | 227 |
| Macaulay Duration (yrs) | — | — |
| Average Maturity (yrs) | — | — |
| Yield to Maturity (%) | — | — |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For JM Arbitrage Fund
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