September 13, 2022
mayank
Mirae Asset Arbitrage Fund
NAV Growth : Rs 10.9390
NAV IDCW : Rs 10.9330
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 capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and 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) Jigar Shethia
Education : Mr. Shethia is a BCOM & CFA Level 3
Experience : Prior to joining Mirae Asset Mutual Fund, he has worked with Sushil Financial Services Pvt Ltd as Assistant Manager – Equity.
2) Mahendra Kumar Jajoo
Education : Mr. Jajoo is a B.Com (H), CS, Chartered Accountant and CFA.
Experience : Prior to joining Mirae Asset Mutual Fund he was Director with AUM Capital Markets Ltd. and also been associated with organisations like PGIM India Mutual Fund, Tata Asset Management Company, BNP Paribas Asset Management India Pvt. Ltd., ABN Amro Securities India Pvt. Ltd. and ICICI Group.
Investment Details
| Min. Investment (Rs) : | 5,000 |
| Min. Addl Investment (Rs) : | 1,000 |
| Min. SIP Investment (Rs) : | 1,000 |
| Min. Withdrawal (Rs) : | — |
| Min. No of Cheques : | 5 |
| Min. Balance (Rs) : | — |
| Lock-in Period : | NA |
| Exit Load : | 0.25% for redemption within 30 days |
Basic Details
| Fund House : | Mirae Asset Mutual Fund |
| Launch Date : | 19-Jun-20 |
| Return Since Launch : | 4.10% |
| Benchmark : | NIFTY 50 Arbitrage TRI |
| Riskometer: | Low |
| Type : | Open-ended |
| Assets : | Rs 386 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio : | 0.37% |
| (As on 31-Jul-2022) | |
| Risk Grade : | — |
| Return Grade : | — |
| Turnover : | 1490.00% |
Mirae Asset Arbitrage Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Mirae Asset Arbtg Dir | 2.83 | -0.04 | 0.33 | 0.98 | 1.95 | 3.84 | — | — | — | — |
| CCIL T Bill Liquidity Weight | 1.46 | -0.02 | 0.18 | 0.72 | 1.08 | 2.04 | — | — | — | — |
| Hybrid: Arbitrage | 2.67 | -0.03 | 0.32 | 0.93 | 1.88 | 3.73 | — | — | — | — |
| Rank within category | 9 | 20 | 12 | 11 | 13 | 12 | — | — | — | — |
| Number of funds in category | 25 | 26 | 26 | 25 | 25 | 25 | 23 | 17 | 15 | 0 |
Mirae Asset Arbitrage Fund Peer Comparison
| 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 | Turn over (%) |
| Mirae Asset Arbtg Dir | Unrated | 3.84 | — | — | 0.37 | 386 | 4.10 | 0.25 (30) | 2yrs 2mo | 1490.00 |
| Kotak Eqt Arbtg Dir | 4 star | 4.27 | 4.71 | 5.57 | 0.44 | 23,310 | 6.86 | 0.25 (30) | 9yrs 8mo | 528.42 |
| Nippon Ind Arbtg Dir | 4 star | 4.14 | 4.70 | 5.72 | 0.34 | 9,331 | 6.92 | 0.25 (30) | 9yrs 8mo | 1175.00 |
| Tata Arbtg Dir | 5 star | 3.85 | 4.98 | — | 0.29 | 7,385 | 5.47 | 0.25 (30) | 3yrs 9mo | 452.55 |
| Edelweiss Arbtg Dir | 5 star | 4.30 | 4.86 | 5.71 | 0.36 | 5,841 | 6.52 | 0.10 (30) | 8yrs 2mo | 403.00 |
Portfolio Analysis
| No. of Stocks | 57 |
| Top 10 Holdings (%) : | 36.97 |
| Top 5 Stocks (%) : | 23.44 |
| Top 3 Sectors (%) : | 0.01 |
| Portfolio P/B Ratio : | 2.71 |
| Portfolio P/E Ratio : | 16.36 |
| Avg Credit Rating | GOI/Cash |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 87,611 | 1,31,018 |
| Giant (%) | 33.00 | 44.66 |
| Large (%) | 26.09 | 26.44 |
| Mid (%) | 39.79 | 24.69 |
| Small (%) | 1.12 | 4.97 |
| Tiny (%) | — | — |
Mirae Asset Arbitrage Fund by Chanakya :
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