October 3, 2023
mayank
LIC MF Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 12.7170
NAV IDCW Weekly: Rs 11.9498
IDCW Monthly NAV: Rs 11.5615
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 taking advantage of arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment of the equity market along with investments in debt securities & money market instruments.
Fund Manager:
1) Sumit Bhatnagar
Education: Mr. Bhatnagar is an MBA (Investment Management) from University of Toronto, Canada and CFA Charter (USA).
Experience: Prior to joining LIC Mutual Fund. He was assocaited with Indiabulls Mutual Fund he has worked with SEBI.
2) Pratik Harish Shroff
Education: Mr. Shroff has done B.Com, M.Com, CFA, FRM and Executive Programme in Applied Finance – IIM, Calcutta
Experience: Prior to joining LIC Mutual Fund, he was associated with CTBC Bank Ltd, IndusInd Bank Ltd, Industrial and Commercial Bank of China, Tata Mutual Fund and LKP Securities.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 500 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption Within 30 days |
Basic Details of LIC MF Arbitrage Fund
| Fund House | LIC Mutual Fund |
| Launch Date | 25-Jan-19 |
| Return Since Launch | 5.27% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 20 Cr |
| (As on 31-Aug-2023) | |
| Expense | 0.31% |
| (As on 31-Aug-2023) | |
| Risk Grade | Above Average |
| Return Grade | Below Average |
| Turnover | 13.00% |
LIC MF Arbitrage Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| LIC MF Arbitrage Dir | 5.67 | 0.10 | 0.71 | 2.02 | 3.97 | 7.21 | 5.16 | — | — | — |
| CCIL T Bill Liquidity Weight | 3.23 | 0.07 | 0.37 | 1.03 | 2.30 | 4.24 | 2.83 | — | — | — |
| Hybrid: Arbitrage | 5.74 | 0.13 | 0.69 | 2.00 | 3.92 | 7.30 | 5.14 | — | — | — |
| Rank within category | 18 | 27 | 8 | 18 | 19 | 18 | 17 | — | — | — |
| Number of funds in category | 26 | 27 | 26 | 26 | 26 | 26 | 25 | 19 | 16 | 9 |
LIC MF 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 (%) | |
| LIC MF Arbitrage Dir | 2 star | 7.21 | 5.16 | — | 0.31 | 20 | 5.27 | 0.25 (30) | 4Y 8M | 13.00 |
| Kotak Eqt Arbtg Dir | 4 star | 7.77 | 5.64 | 5.78 | 0.43 | 25,860 | 6.96 | 0.25 (30) | 10Y 9M | 1938.12 |
| Nippon Ind Arbtg Dir | 4 star | 7.66 | 5.53 | 5.82 | 0.34 | 10,408 | 6.99 | 0.25 (30) | 10Y 9M | 1279.00 |
| Tata Arbitrage Dir | 5 star | 7.69 | 5.55 | — | 0.29 | 7,150 | 5.96 | 0.25 (30) | 4Y 9M | 522.02 |
| Invesco Ind Arbtg Dir | 5 star | 8.00 | 5.74 | 5.82 | 0.38 | 6,983 | 6.80 | 0.50 (15) | 10Y 9M | 1928.00 |
Portfolio Analysis of LIC MF Arbitrage Fund
| No. of Stocks | 30 |
| Top 10 Holdings | 63.88% |
| Top 5 Stocks | 45.57% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.46 |
| Portfolio P/E Ratio | 14.82 |
| Avg Credit Rating | GOI/Cash |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,05,885 | 1,23,267 |
| Giant (%) | 39.46 | 41.12 |
| Large (%) | 34.26 | 30.20 |
| Mid (%) | 21.11 | 24.40 |
| Small (%) | 5.17 | 4.84 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 61 | 166 |
| Macaulay Duration (yrs) | — | — |
| Average Maturity (yrs) | — | — |
| Yield to Maturity (%) | — | — |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For LIC MF Arbitrage Fund
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