August 14, 2023
mayank
Tata Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 13.0434
NAV IDCW Monthly: Rs 12.5297
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 investing predominantly 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:
1) Sailesh Jain
Education: Mr. Jain is a Commerce Graduate and an MBA.
Experience: Prior to joining TATA Mutual Fund, he has worked with Invesco Mutual Fund, IDFC Securities Ltd. as Head Derivatives, Quant Broking Pvt. Ltd. as Vice President and IIFL(India Infoline) as Vice President.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 150 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption Within 30 days |
Basic Details of Tata Arbitrage Fund
| Fund House | Tata Mutual Fund |
| Launch Date | 18-Dec-18 |
| Return Since Launch | 5.88% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 6,955 Cr |
| (As on 31-Jul-2023) | |
| Expense | 0.29% |
| (As on 30-Jun-2023) | |
| Risk Grade | Low |
| Return Grade | High |
| Turnover | 487.88% |
Tata Arbitrage Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Tata Arbitrage Dir | 4.81 | 0.01 | 0.70 | 2.00 | 3.85 | 7.30 | 5.40 | — | — | — |
| CCIL T Bill Liquidity Weight | 2.67 | 0.02 | 0.37 | 1.22 | 2.30 | 4.06 | 2.74 | — | — | — |
| Hybrid: Arbitrage | 4.58 | 0.00 | 0.66 | 1.96 | 3.68 | 6.93 | 5.01 | — | — | — |
| Rank within category | 4 | 12 | 9 | 13 | 10 | 5 | 4 | — | — | — |
| Number of funds in category | 26 | 26 | 26 | 26 | 26 | 26 | 24 | 19 | 16 | 9 |
Tata 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 (%) | |
| Tata Arbitrage Dir | 5 star | 7.30 | 5.40 | — | 0.29 | 6,955 | 5.88 | 0.25 (30) | 4Y 7M | 487.88 |
| Kotak Eqt Arbtg Dir | 4 star | 7.41 | 5.45 | 5.76 | 0.43 | 23,737 | 6.93 | 0.25 (30) | 10Y 7M | 1868.67 |
| Nippon Ind Arbtg Dir | 4 star | 7.29 | 5.35 | 5.79 | 0.34 | 9,753 | 6.97 | 0.25 (30) | 10Y 7M | 1218.00 |
| Invesco Ind Arbtg Dir | 5 star | 7.73 | 5.54 | 5.78 | 0.38 | 5,894 | 6.77 | 0.50 (15) | 10Y 7M | 2040.00 |
| Edelweiss Arbitrage Dir | 5 star | 7.34 | 5.43 | 5.87 | 0.38 | 5,881 | 6.62 | 0.10 (30) | 9Y 1M | 381.00 |
Portfolio Analysis of Tata Arbitrage Fund
| No. of Stocks | 135 |
| Top 10 Holdings | 38.27% |
| Top 5 Stocks | 29.37% |
| Top 3 Sectors | 0.41% |
| Portfolio P/B Ratio | 2.09 |
| Portfolio P/E Ratio | 17.09 |
| Avg Credit Rating | GOI/Cash |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,01,752 | 1,21,897 |
| Giant (%) | 33.88 | 40.40 |
| Large (%) | 37.05 | 31.29 |
| Mid (%) | 24.98 | 24.61 |
| Small (%) | 4.09 | 4.37 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 287 | 177 |
| Macaulay Duration (yrs) | 0.58 | 0.31 |
| Average Maturity (yrs) | 0.59 | 0.33 |
| Yield to Maturity (%) | 7.23 | 6.83 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For Tata Arbitrage Fund
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