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4 star

Nippon India Arbitrage Fund


Hybrid: Arbitrage

1 Lakh

Investment Grown to
₹ 1.17 Lakh

₹ 10000

Monthly SIP Grown to
₹ 3.85 Lakh

Suitability:

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.

Taxability of earnings:

Capital gains

  • If the mutual fund units are sold after 1 year from the date of investment, gains upto Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.
  • If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.
  • No tax is to be paid as long as you continue to hold the units.

Dividends

  • Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.

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(₹)
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Trailing Returns (%)

YTD 1-Day 1-W 1-M 3-M 6-M 1-Y 3-Y 5-Y 7-Y 10-Y
Fund 1.17 -0.05 -0.06 0.26 0.96 1.73 3.40 5.30 5.69 6.23 7.12
CCIL T Bill Liquidity Weight 0.63 0.01 0.03 0.14 0.48 0.96 2.23 3.61 3.86 4.31 4.65
Hybrid: Arbitrage 1.02 -0.05 -0.06 0.24 0.85 1.52 2.78 4.83 5.28 5.98 6.79
Rank within category 10 14 11 12 10 11 5 3 1 1 1
Number of funds in category 27 27 27 27 27 27 25 18 16 10 10

As on 05-May-2021

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
Nippon India Arbitrage Fund  | Invest Online
4 star
Oct-10 3.40 5.30 5.69 1.01 10,211
Kotak Equity Arbitrage Fund Regular Plan  | Invest Online
5 star
Sep-05 3.45 5.29 5.66 1.00 17,835
Aditya Birla Sun Life Arbitrage Fund  | Invest Online
4 star
Jul-09 3.32 5.20 5.52 0.94 5,552
UTI Arbitrage Fund - Regular Plan  | Invest Online
4 star
Jun-06 3.46 5.28 5.60 0.95 3,843
Edelweiss Arbitrage Fund - Regular Plan  | Invest Online
5 star
Jun-14 3.15 5.30 5.65 1.09 3,707

Best & Worst Performance

Best Performance Worst Performance
Return (%) Period Return (%) Period
Week 0.76 28-Feb-2012 - 06-Mar-2012 -0.53 29-May-2020 - 05-Jun-2020
Month 1.61 02-Aug-2013 - 03-Sep-2013 -0.15 29-May-2020 - 29-Jun-2020
Quarter 3.37 30-Apr-2012 - 31-Jul-2012 0.06 29-May-2020 - 28-Aug-2020
Year 10.86 27-Sep-2011 - 26-Sep-2012 3.26 16-Mar-2020 - 16-Mar-2021

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 5.24 0.84 1.02 1.61 0.78 1.50
CCIL T Bill Liquidity Weight 3.56 0.38 -2.17 -5.20 -- --
Hybrid: Arbitrage 4.78 0.95 0.65 0.99 0.83 1.09
Rank within category 3 14 6 3 8 4
Number of funds in category 18 18 18 18 18 18

The Risk Measures have been calculated using calendar month returns for the last three years.

As on 30-Apr-2021

Asset Allocation (%)

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Concentration & Valuation

Number of Stocks 129
Top 10 Holdings (%) 36.69
Top 5 Holdings (%) 23.46
Top 3 Sectors (%) --
Portfolio P/B Ratio 2.21
Portfolio P/E Ratio 22.65
Avg Credit Rating GOI/Cash

Value Research Equity Fund Style

Value Research Debt Fund Style

Credit Rating vis-à-vis Category

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Top Debt Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal Nippon India Money Market Direct-G Mutual Fund -- 5.84 - 9.44 7.50
equal Nippon India Liquid Direct-G Mutual Fund -- 1.42 - 4.53 4.22
up 8.20% GOI 15/02/2022 Central Government Loan SOV 0.00 - 1.83 1.83
equal 7.80% GOI 2021 Central Government Loan SOV 0.00 - 1.48 1.37
equal Federal Bank Fixed Deposits -- 1.22 - 4.55 1.22
new 8.35% GOI 2022 GOI Securities SOV 0.00 - 1.02 1.02
equal 6.17% GOI 15/07/2021 GOI Securities SOV 0.00 - 1.06 0.99
new 8.79% GOI 2021 Central Government Loan SOV 0.00 - 0.76 0.76
equal Reserve Bank of India 364-D 08/07/2021 Treasury Bills SOV 0.00 - 0.92 0.73
equal 9.02% REC 19/11/2022 Bonds AAA 0.00 - 0.56 0.52
equal 6.92% REC 22/04/2023 Non Convertible Debenture AAA 0.00 - 0.54 0.51
equal Reserve Bank of India 364-D 03/06/2021 Treasury Bills SOV 0.00 - 0.61 0.49
equal Reserve Bank of India 364-D 17/06/2021 Treasury Bills SOV 0.00 - 0.61 0.49
equal 7.94% GOI 24/05/2021 Central Government Loan SOV 0.00 - 0.57 0.44
equal Reserve Bank of India 364-D 10/06/2021 Treasury Bills SOV 0.00 - 0.49 0.39
equal Reserve Bank of India 364-D 01/07/2021 Treasury Bills SOV 0.00 - 0.31 0.24
equal Others Margin Money -- - 0.00

up down equal Indicates an increase or decrease or no change in holding since last portfolio
new Indicates a new holding since last portfolio

Sector Allocation vis-à-vis Category

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Top Equity Holdings

Company Sector P/E 3Y High 3Y Low % Assets
down ICICI Bank Financial 22.68 5.85 0.00 4.55
up Tata Steel Metals -- 4.29 0.00 4.29
up Bharti Airtel Communication -- 5.74 0.23 2.90
up State Bank of India Financial 13.68 3.47 0.00 2.86
up Indusind Bank Financial 24.59 2.75 0.00 2.71
up Sun Pharmaceutical Inds. Healthcare 68.04 5.41 0.40 2.69
up Grasim Industries Construction 23.06 2.52 0.02 2.52
down HDFC Financial 24.51 7.47 2.18 2.45
up Adani Ports and Special Economic Zone Services 30.18 2.38 0.00 2.38
up Tata Consultancy Services Technology 35.32 5.35 0.00 2.31
down Reliance Industries Energy 26.42 8.61 0.41 1.79
down JSW Steel Metals 43.97 3.58 0.09 1.66
up Infosys Technology 29.54 5.76 0.00 1.53
up Axis Bank Financial 30.54 4.06 0.00 1.44
up BPCL Energy 22.94 1.85 0.00 1.34
up Larsen & Toubro Construction 16.36 2.13 0.00 1.21
down Tata Power Energy 28.66 1.27 0.00 1.21
up Kotak Mahindra Bank Financial 35.12 1.18 0.00 1.00
up Titan Company Cons Durable 130.26 2.25 0.00 1.00
up UPL Chemicals 20.18 2.72 0.12 0.96
up Lupin Healthcare 47.54 0.92 0.00 0.82
up Jindal Steel & Power Metals 21.63 0.90 0.00 0.80
up SAIL Metals 16.17 0.72 0.00 0.72
up HCL Technologies Technology 22.15 1.77 0.00 0.71
down Hindustan Unilever FMCG 70.38 5.06 0.00 0.70

up down equal Indicates an increase or decrease or no change in holding since last portfolio
new Indicates a new holding since last portfolio

As on 31-Mar-2021

Fund Manager

— Anand Devendra Gupta since 12-Sep-2018

Education: Mr. Gupta is B.Com and PGDBA

Experience: Prior to joining Nippon India Mutual Fund he has worked with ICICI Prudential AMC and Refco - Sify Securities Pvt. Ltd.

Funds Managed:

— Anju Chhajer since 01-Feb-2020

Education: Ms. Chhajer is a B.Com (H) and a Chartered Accountant.

Experience: Prior to joining Nippon India Mutual Fund Ltd. as a fund manager, she has worked with National Insurance Company as a Money Maker Instruments and D.C Dharewa & Co.

Funds Managed:


-0.05%

Change from previous, NAV as on 05-May-2021

Growth: ₹ 20.8987

IDCW Monthly: ₹ 10.8932

IDCW: ₹ 12.5244


Investment Strategy

The scheme seeks to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities & money market instruments.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 100
Minimum No of Cheques 60
Minimum Withdrawal (₹) 100
Minimum Balance (₹) 1
Lock-in Period Not Applicable
Exit Load 0.25% for redemption within 30 days

Basic Details

Fund House: Nippon India Mutual Fund
Launch Date: 14-Oct-2010
Return Since Launch: 7.23%
Benchmark: NIFTY 50 Arbitrage TRI
Riskometer: Low
Type: Open-ended
Assets: ₹ 10,211 Cr (As on 31-Mar-2021)
Expense: 1.01% (As on 31-Mar-2021)
Risk Grade: Average
Return Grade: High
Turnover: 1,284.00%

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
IDCW Monthly23-Nov-20200.0500

 20-Oct-20200.0600
 24-Aug-20200.0300
 22-Jun-20200.0500
 23-Mar-20200.0443
 24-Feb-20200.0443
 27-Jan-20200.0443
 23-Dec-20190.0443
 25-Nov-20190.0443
 29-Oct-20190.0443
 24-Sep-20190.0443
 26-Aug-20190.0443
 22-Jul-20190.0443
 24-Jun-20190.0443
 27-May-20190.0443
 22-Apr-20190.0443
 25-Mar-20190.0443
 25-Feb-20190.0443
 28-Jan-20190.0443
 24-Dec-20180.0443
 26-Nov-20180.0443
 22-Oct-20180.0500
 24-Sep-20180.0443
 27-Aug-20180.0443
 23-Jul-20180.0443
IDCW20-Oct-20200.1400

 22-Jun-20200.1500
 23-Mar-20200.1328
 23-Dec-20190.1328
 24-Sep-20190.1328
 24-Jun-20190.1328
 25-Mar-20190.1328
 24-Dec-20180.1328
 24-Sep-20180.1328
 25-Jun-20180.1328
 23-Mar-20180.2000
 26-Dec-20170.1500
 25-Sep-20170.1500
 27-Jun-20170.1500
 24-Apr-20170.1500
 26-Dec-20160.1500
 26-Sep-20160.1500
 27-Jun-20160.1500
 28-Mar-20160.1500
 28-Dec-20150.1500
 29-Sep-20150.1500
 29-Jun-20150.2500
 23-Mar-20150.4000
 25-Nov-20140.1500
 28-Feb-20142.2500

Contact Information

AMC: Nippon India Life Asset Management Ltd.

Address: Reliance Centre, 7th Floor, South Wing Off Western Express Highway Santacruz (East) Mumbai - 400055

Phone: 022-68334800 / 18602660111

Fax: 022-33037662

Email: [email protected]

Website: http://www.nipponindiamf.com

Registrar & Transfer Agent: KFin Technologies Pvt Ltd.

Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad - 500016

Phone: 040-44857874

Email: [email protected]

Website: www.karvymfs.com

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DateFriday, 07-May-2021
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