August 8, 2022
mayank
L&T Arbitrage Opportunities Fund Guidance
NAV Growth : Rs 16.4480
NAV IDCW Quarterly : Rs 11.1710
NAV IDCW Monthly : Rs 10.3560
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 reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.
Fund Manager :
— Praveen Ayathan
Education : Mr. Praveen is a B.Sc (Mathematics).
Experience : Prior to joining L&T Investment Management Ltd he has worked with Kotak Mahindra AMC and Dalal & Broacha Stock Broking Pvt. Ltd.
— Venugopal Manghat
Education : Mr. Manghat is a B.Sc (Mathematics) and MBA (Finance).
Experience : Prior to joining L&T Mutual Fund he has worked with Tata Asset Management Ltd.
— Jalpan Shah
Education : Mr. Shah is a B.E. (Mechanical) and holds a PGDM.
Experience : Prior to joining L&T Mutual Fund, he was associated with FIL Fund Management Private Limited (Dec 2007-Nov 2012), Lotus India Asset Management Company Private Limited (Sep 2007-Nov 2007) as a Research Analyst, UTI Asset Management Company Private Limited (July 2006-Aug 2007) as a Research Analyst and UTI Asset Management Company Private Limited(May 2004-June 2006) as a Sales & Marketing Manager.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. No of Cheques | 6 |
| Min. Withdrawal (Rs) | 500 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | Not Applicable |
| Exit Load | 0.5% for redemption within 30 days |
Basic Details
| Fund House: | L&T Mutual Fund |
| Launch Date: | 30-Jun-14 |
| Return Since Launch: | 6.33% |
| Benchmark: | NIFTY 50 Arbitrage TRI |
| Riskometer: | Low |
| Type: | Open-ended |
| Assets: | Rs 2,979 Cr |
| (As on 30-Jun-2022) | |
| Expense Ratio: | 0.35% |
| (As on 30-Jun-2022) | |
| Risk Grade: | Below Average |
| Return Grade: | Above Average |
| Turnover: | 1280.67% |
L&T Arbitrage Opportunities 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 | |
| L&T Arbitrage Opportunities Direct-G | 2.21 | -0.02 | 0.14 | 0.12 | 0.82 | 1.72 | 3.7 | 4.76 | 5.58 | 5.94 | — |
| CCIL T Bill Liquidity Weight | 1.21 | 0.05 | 0.09 | 0.28 | 0.61 | 1.05 | 2.04 | 2.63 | 3.27 | 3.65 | — |
| Hybrid: Arbitrage | 2.25 | -0.01 | 0.15 | 0.14 | 0.86 | 1.77 | 3.73 | 4.45 | 5.28 | 5.8 | — |
| Rank within category | 17 | 21 | 15 | 18 | 20 | 17 | 16 | 7 | 7 | 5 | — |
| Number of funds in category | 25 | 26 | 25 | 25 | 25 | 25 | 25 | 22 | 17 | 15 | 0 |
L&T Arbitrage Opportunities Fund Guidance Peer Comparison
| Fund name | Rating | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return | Expense Ratio | Assets (Cr) |
| L&T Arbitrage Opportunities Fund | 4 star | Jun-14 | 3.7 | 4.76 | 5.58 | 0.35 | 2,979 |
| Kotak Equity Arbitrage Fund | 4 star | Jan-13 | 4.22 | 4.8 | 5.61 | 0.44 | 25,789 |
| Nippon India Arbitrage Fund | 4 star | Jan-13 | 4.14 | 4.8 | 5.76 | 0.34 | 10,809 |
| Tata Arbitrage Fund | 5 star | Dec-18 | 3.95 | 5.07 | — | 0.29 | 8,386 |
| Edelweiss Arbitrage Fund | 5 star | Jun-14 | 4.3 | 4.96 | 5.76 | 0.35 | 6,993 |
Portfolio Analysis
| Number of Stocks | 146 |
| Top 10 Holdings (%) | 37.16 |
| Top 5 Holdings (%) | 22.88 |
| Top 3 Sectors (%) | 0.27 |
| Portfolio P/B Ratio | 2.4 |
| Portfolio P/E Ratio | 18.45 |
| Avg Credit Rating | GOI/Cash |
L&T Arbitrage Opportunities Fund Guidance by Chanakya :
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