July 28, 2023
mayank
Sundaram Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 13.1914
NAV IDCW Monthly: Rs 11.4071
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) Ashish Aggarwal
Education: Mr. Aggarwal has done BE, PGPM
Experience: Prior to joining Sundaram Mutual Fund, he has worked with Principal Mutual Fund, IL&FS Investsmart, Tata Securities and Antique Stock Broking.
2) Rohit Seksaria
Education: Mr. Seksaria is CS, CA & has done MBA from IIM Ahmedabad
Experience: Prior to joining Sundaram Mutual Fund he has worked with Progress Capital/Asia Capital & Advisor Pte Ltd., Matchpoint Investment Management and Progress Capital Pte Ltd.
3) Dwijendra Srivastava
Education: Mr. Srivastava is B.Tech , PGDM (Finance) and CFA.
Experience: Prior to joining Sundaram Mutual Fund he has worked with PGIM India Mutual Fund, JM Financial AMC, Tata AMC Private Ltd., Tower Capital and Securities, Indo Swiss Financial and Gontermann Pipers.
Investment Details
| Min. Investment (Rs) | 100 |
| Min. Addl Investment (Rs) | 100 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | For units in excess of 25% of the investment, 1% will be charged for redemption Within 15 days |
Basic Details of Sundaram Arbitrage Fund
| Fund House | Sundaram Mutual Fund |
| Launch Date | 21-Apr-16 |
| Return Since Launch | 4.27% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low to Moderate |
| Type | Open-ended |
| Assets | Rs 85 Cr |
| (As on 30-Jun-2023) | |
| Expense | 0.28% |
| (As on 30-Jun-2023) | |
| Risk Grade | High |
| Return Grade | Low |
| Turnover | 1065.00% |
Sundaram Arbitrage Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Sundaram Arbitrage Dir | 4.06 | -0.04 | 0.48 | 1.77 | 3.52 | 6.56 | 4.75 | 3.43 | 4.14 | — |
| CCIL T Bill Liquidity Weight | 2.50 | 0.03 | 0.38 | 1.20 | 2.24 | 4.07 | 2.72 | 3.29 | 3.52 | — |
| Hybrid: Arbitrage | 4.15 | -0.04 | 0.51 | 1.80 | 3.57 | 6.67 | 4.86 | 5.31 | 5.69 | — |
| Rank within category | 20 | 11 | 20 | 20 | 19 | 20 | 19 | 19 | 16 | — |
| Number of funds in category | 26 | 26 | 26 | 26 | 26 | 25 | 24 | 19 | 16 | 9 |
Sundaram 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 (%) | |
| Sundaram Arbitrage Dir | 1 star | 6.56 | 4.75 | 3.43 | 0.28 | 85 | 4.27 | 1.00 (15) | 7Y 3M | 1065.00 |
| Kotak Eqt Arbtg Dir | 4 star | 7.13 | 5.30 | 5.72 | 0.43 | 22,513 | 6.92 | 0.25 (30) | 10Y 6M | 1868.67 |
| Nippon Ind Arbtg Dir | 4 star | 7.02 | 5.20 | 5.76 | 0.34 | 9,220 | 6.96 | 0.25 (30) | 10Y 6M | 1218.00 |
| Tata Arbitrage Dir | 5 star | 7.03 | 5.26 | — | 0.29 | 6,467 | 5.84 | 0.25 (30) | 4Y 7M | 487.88 |
| Edelweiss Arbitrage Dir | 5 star | 7.06 | 5.28 | 5.83 | 0.38 | 5,305 | 6.60 | 0.10 (30) | 9Y 1M | 381.00 |
Portfolio Analysis of Sundaram Arbitrage Fund
| No. of Stocks | 21 |
| Top 10 Holdings | 67.30% |
| Top 5 Stocks | 39.75% |
| Top 3 Sectors | 5.22% |
| Portfolio P/B Ratio | 2.92 |
| Portfolio P/E Ratio | 29.37 |
| Avg Credit Rating | GOI/Cash |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,99,094 | 1,26,484 |
| Giant (%) | 58.65 | 42.38 |
| Large (%) | 14.57 | 28.09 |
| Mid (%) | 26.78 | 26.81 |
| Small (%) | — | 4.43 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 46 | 173 |
| Macaulay Duration (yrs) | 0.18 | 0.33 |
| Average Maturity (yrs) | 0.18 | 0.32 |
| Yield to Maturity (%) | 6.70 | 7.01 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For Sundaram Arbitrage Fund
Apply Online: https://www.sundarammutual.com/Fund/AllSchemes
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