August 22, 2024
mayank
Union Arbitrage Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 13.6713
NAV IDCW: Rs 13.3469
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 derivatives segment of the equity market, and by investing the balance in debt and money market instruments.
Fund Manager:
1) Vishal Thakker
Education: Mr.Thakker has done B.Com & M.B.A
Experience: Prior joining to Union Mutual Fund he has worked with Elara Capital and Emkay Shares & Stock Broking.
2) Devesh Thacker
Education: Mr. Thacker is a B.Com (H) and Post graduate from University of Pune.
Experience: Prior to joining Union AMC in 2011 he has worked with Sahara AMC.
Investment Details
| Min. Investment (Rs) | 1,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | q1,000 |
| Min. No of Cheques | 6 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption within 30 days |
Basic Details of Union Arbitrage Fund
| Fund House | Union Mutual Fund |
| Launch Date | 27-Feb-19 |
| Return Since Launch | 5.87% |
| Benchmark | NIFTY 50 Arbitrage TRI |
| Riskometer | Low |
| Type | Open-ended |
| Assets | Rs 235 Cr |
| (As on 31-Jul-2024) | |
| Expense | 0.38% |
| (As on 31-Jul-2024) | |
| Risk Grade | Above Average |
| Return Grade | Below Average |
| Turnover | 1460.00% |
Trailing Returns (%) of Union Arbitrage Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Union Arbitrage Dir | 5.44 | -0.02 | 0.55 | 2.00 | 3.95 | 8.32 | 6.23 | 5.68 | — | — |
| CCIL T Bill Liquidity Weight | 3.08 | 0.03 | 0.45 | 1.30 | 2.43 | 4.84 | 3.59 | 3.31 | — | — |
| Hybrid: Arbitrage | 5.34 | -0.02 | 0.52 | 2.00 | 3.89 | 8.20 | 6.29 | 5.73 | — | — |
| Rank within category | 12 | 10 | 3 | 16 | 12 | 12 | 18 | 15 | — | — |
| Number of funds in category | 27 | 27 | 27 | 27 | 27 | 25 | 24 | 21 | 16 | 13 |
Peer Comparison of Union 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 (%) | |
| Union Arbitrage Dir | 2 star | 8.32 | 6.23 | 5.68 | 0.38 | 235 | 5.87 | 0.25 (30) | 5Y 5M | 1460.00 |
| Kotak Equity Arbitrage Dir | 4 star | 8.58 | 6.71 | 6.04 | 0.43 | 51,570 | 7.07 | 0.25 (30) | 11Y 7M | 2107.89 |
| Invesco India Arbitrage Dir | 5 star | 8.43 | 6.86 | 6.12 | 0.39 | 17,654 | 6.91 | 0.50 (15) | 11Y 7M | 1794.00 |
| Nippon India Arbitrage Dir | 4 star | 8.33 | 6.54 | 5.96 | 0.38 | 15,617 | 7.09 | 0.25 (30) | 11Y 7M | 1340.00 |
| ABSL Arbitrage Dir | 4 star | 8.39 | 6.47 | 5.89 | 0.29 | 13,209 | 6.95 | 0.25 (15) | 11Y 7M | 1516.00 |
Portfolio Analysis of Union Arbitrage Fund
| No. of Stocks | 96 |
| Top 10 Holdings | 36.29% |
| Top 5 Stocks | 26.87% |
| Top 3 Sectors | –% |
| Portfolio P/B Ratio | 3.67 |
| Portfolio P/E Ratio | 23.47 |
Portfolio Breakup
| Fund | Category | |
| Average Mkt Cap (Rs Cr) | 1,92,889 | 1,91,587 |
| Giant (%) | 51.65 | 47.35 |
| Large (%) | 31.88 | 33.45 |
| Mid (%) | 14.87 | 18.15 |
| Small (%) | 1.60 | 1.29 |
| Tiny (%) | — | — |
| Fund | Category | |
| Number of Securities | 195 | 216 |
| Macaulay Duration (yrs) | 0.10 | 0.31 |
| Average Maturity (yrs) | 0.10 | 0.32 |
| Yield to Maturity (%) | 6.89 | 7.01 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For Union Arbitrage Fund
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