September 25, 2024
mayank
PGIM India Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 18.5863
Monthly NAV IDCW: Rs 11.3499
NAV IDCW: Rs 12.4984
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 investing in arbitrage opportunities that potentially exist between the cash and derivatives market as well as within the derivatives segment of the market. Investments may also be made in debt & money market instruments.
Fund Manager:
1) Chetan Chavan
Education: Mr. Chavan has done B.Com
Experience: Prior to joining PGIM India Mutual Fund, he was associated with Bajaj Finserv Mutual Fund, Mahindra Manulife Investment Management Private Limited and Invesco Asset Management (India) Private Limited.
2) Puneet Pal
Education: Mr. Pal is a B.Com (H) and MBA from SIBM Pune.
Experience: Prior to joining PGIM India Mutual Fund, he has worked with BNP Paribas AMC as Head Fixed Income, UTI AMC as Sr. Vice President & Fund Manager & TATA AMC as Fund Manager.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 1,000 |
| Min. Withdrawal (Rs) | 1,000 |
| Min. No of Cheques | 5 |
| Min. Balance (Rs) | 1 |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption within 30 days |
Basic Details of PGIM India Arbitrage Fund
| Fund House | PGIM India Mutual Fund |
| Launch Date | 27-Aug-14 |
| Return Since Launch | 6.34% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 113 Cr |
| (As on 31-Aug-2024) | |
| Expense | 0.38% |
| (As on 31-Aug-2024) | |
| Risk Grade | Average |
| Return Grade | Below Average |
| Turnover | 124.00% |
Trailing Returns (%) of PGIM India Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| PGIM India Arbitrage Dir | 5.91 | -0.04 | 0.57 | 1.88 | 4.05 | 7.85 | 6.27 | 5.64 | 5.82 | 6.31 |
| CCIL T Bill Liquidity Weight | 3.55 | 0.00 | 0.40 | 1.34 | 2.48 | 4.78 | 3.68 | 3.34 | 3.59 | 3.97 |
| Hybrid: Arbitrage | 6.02 | -0.03 | 0.53 | 1.82 | 4.02 | 8.03 | 6.44 | 5.76 | 6.00 | 6.48 |
| Rank within category | 20 | 24 | 2 | 6 | 16 | 19 | 19 | 17 | 14 | 12 |
| Number of funds in category | 27 | 28 | 27 | 27 | 27 | 26 | 24 | 22 | 16 | 14 |
Peer Comparison of PGIM India 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 (%) | |
| PGIM India Arbitrage Dir | 2 star | 7.85 | 6.27 | 5.64 | 0.38 | 113 | 6.34 | 0.25 (30) | 10Y | 124.00 |
| Kotak Equity Arbitrage Dir | 4 star | 8.44 | 6.86 | 6.10 | 0.43 | 53,423 | 7.08 | 0.25 (30) | 11Y 8M | 2107.89 |
| Invesco India Arbitrage Dir | 5 star | 8.31 | 7.04 | 6.19 | 0.39 | 17,362 | 6.92 | 0.50 (15) | 11Y 8M | 1783.00 |
| Nippon India Arbitrage Dir | 4 star | 8.16 | 6.68 | 6.02 | 0.38 | 15,827 | 7.09 | 0.25 (30) | 11Y 8M | 1323.00 |
| ABSL Arbitrage Dir | 4 star | 8.22 | 6.60 | 5.94 | 0.29 | 13,316 | 6.95 | 0.25 (15) | 11Y 8M | 1463.00 |
Portfolio Analysis of PGIM India Arbitrage Fund
| No. of Stocks | 37 |
| Top 10 Holdings | 61.85% |
| Top 5 Stocks | 38.83% |
| Top 3 Sectors | 0.02% |
| Portfolio P/B Ratio | 2.80 |
| Portfolio P/E Ratio | 18.84 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,95,410 | 1,87,345 |
| Giant (%) | 44.49 | 48.36 |
| Large (%) | 29.80 | 32.16 |
| Mid (%) | 25.60 | 18.25 |
| Small (%) | 0.11 | 1.50 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 78 | 219 |
| Macaulay Duration (yrs) | — | — |
| Average Maturity (yrs) | — | — |
| Yield to Maturity (%) | — | — |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For PGIM India Arbitrage Fund
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PGIM India Arbitrage Fund
PGIM India Arbitrage Fund details, NAV, Fund Portfolio, Peer Comparison, Fund Managers, Mutual Fund Guidance, mutual fund, Best funds to invest, Best Funds, Fund Returns, Fund Analysis
What is PGIM India Arbitrage Fund?
PGIM India Arbitrage Fund – Direct Plan invests in equity shares and derivatives and earns through the price differential between a stock and its futures.
How to Invest in PGIM India Arbitrage?
Mutual funds can be bought directly from the website of the fund house. For instance, PGIM India Arbitrage Fund – Direct Plan fund can be purchased from the website of PGIM India Mutual Fund. You can also buy mutual funds through platforms like MF Central, MF Utility, among others. However, if you are not comfortable buying mutual funds online, you can seek help of a mutual fund distributor. Most banks also act as mutual fund distributors. So you can connect with your bank for assistance.
What is the Riskometer level of PGIM India Arbitrage?
The riskometer level of PGIM India Arbitrage Fund – Direct Plan is Low.
What is the expense ratio of PGIM India Arbitrage?
The expense ratio of PGIM India Arbitrage Fund – Direct Plan is 0.38.