April 21, 2023
mayank
Mahindra Manulife Arbitrage Fund
NAV Growth: Rs 11.1386
NAV IDCW: Rs 11.1386
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 derivatives segment of the equity market and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
Fund Manager:
1) Abhinav Khandelwal
Education: Mr. Khandelwal is Chartered Accountant
Experience: Prior to joining Canara Robeco Mutual Fund he has worked with Aegon life Insurance Company as Fund Manager, Asian Market Securities as Equity Analyst and Systematix Shares & Stocks as Equity Analyst.
2) Manish Lodha
Education: Mr. Lodha is a Chartered Accountant and Company Secretary
Experience: Prior to joining MMIMPL, he was associated with Canara HSBC OBC Life Insurance Co Ltd, Kotak Mahindra Mutual Fund. In these roles, he was responsible for Portfolio Management, Equity Research. He has also held various positions in Finance function during his association with BOC India Ltd (Now Linde India Ltd.).
3) Rahul Pal
Education: Mr. Pal is a B.Com (H) and Chartered Accountant.
Experience: Prior to joining Mahindra Manulife Mutual Fund, he has worked with Taurus AMC, Sundaram Mutual Fund and IDBI Mutual Fund.
Investment Details
| Min. Investment (Rs) | 1,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption within 30 days |
Basic Details
| Fund House | Mahindra Manulife Mutual Fund |
| Launch Date | 24-Aug-20 |
| Return Since Launch | 4.15% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 21 Cr |
| (As on 31-Mar-2023) | |
| Expense | 0.31% |
| (As on 31-Mar-2023) | |
| Risk Grade | — |
| Return Grade | — |
| Turnover | 786.00% |
Mahindra Manulife Arbitrage Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Mahindra Mnulife Arbtg Dir | 2.03 | 0.02 | 0.67 | 1.60 | 2.96 | 5.02 | — | — | — | — |
| CCIL T Bill Liquidity Weight | 1.20 | 0.02 | 0.48 | 0.97 | 2.07 | 3.20 | — | — | — | — |
| Hybrid: Arbitrage | 2.15 | -0.01 | 0.70 | 1.69 | 3.34 | 5.57 | — | — | — | — |
| Rank within category | 23 | 1 | 21 | 22 | 23 | 22 | — | — | — | — |
| Number of funds in category | 26 | 26 | 26 | 26 | 26 | 25 | 23 | 18 | 15 | 9 |
Mahindra Manulife 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 (%) | |
| Mahindra Mnulife Arbtg Dir | Unrated | 5.02 | — | — | 0.31 | 21 | 4.15 | 0.25 (30) | 2yrs 8mo | 786.00 |
| Kotak Eqt Arbtg Dir | 4 star | 6.06 | 4.97 | 5.65 | 0.43 | 21,918 | 6.89 | 0.25 (30) | 10yrs 3mo | 1777.06 |
| Nippon Ind Arbtg Dir | 4 star | 5.89 | 4.92 | 5.72 | 0.21 | 8,086 | 6.93 | 0.25 (30) | 10yrs 3mo | 1215.00 |
| Tata Arbitrage Dir | 5 star | 5.95 | 5.06 | — | 0.28 | 5,187 | 5.73 | 0.25 (30) | 4yrs 4mo | 487.73 |
| Edelweiss Arbitrage Dir | 5 star | 6.00 | 4.94 | 5.77 | 0.37 | 4,317 | 6.57 | 0.10 (30) | 8yrs 10mo | 370.00 |
Portfolio Analysis
| No. of Stocks | 13 |
| Top 10 Holdings | 79.54% |
| Top 5 Stocks | 54.60% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 2.82 |
| Portfolio P/E Ratio | 23.33 |
| Avg Credit Rating | GOI/Cash |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 2,31,402 | 1,35,051 |
| Giant (%) | 60.08 | 48.77 |
| Large (%) | 33.77 | 26.40 |
| Mid (%) | 6.15 | 22.01 |
| Small (%) | — | 3.50 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 27 | 177 |
| Modified Duration (yrs) | 0.01 | 0.36 |
| Average Maturity (yrs) | 0.01 | 0.33 |
| Yield to Maturity (%) | 7.08 | 8.12 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For Mahindra Manulife Arbitrage Fund
Apply Online: https://www.mahindramanulife.com/
>> Post your MF questions @ sahifund.com/ask-me/
>> Stock Research Reports:
https://www.analysislibrary.com/
>> 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
>> For Higher studies, Interview skills, Competitive Exam books
http://www.gyanpothi.com/search-institutes/
>> Get Good Staff or Job, Click: Staffavailable.com
>> To apply for Government & PSU jobs, click
https://www.staffavailable.com/government-psu-jobs/
>> Go to IPOs Analysis Section, Click
>> Interested in Used Automobiles or vintage cars? Click: BigGaddi.com
>> Interested in Crossword Puzzles? Click: magajmari.com