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4 star

L&T Arbitrage Opportunities Fund - Regular Plan


Hybrid: Arbitrage

1 Lakh

Investment Grown to
₹ 1.18 Lakh

₹ 10000

Monthly SIP Grown to
₹ 3.91 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 4.16 0.11 0.16 0.41 1.11 2.00 5.07 5.77 5.91 -- --
CCIL T Bill Liquidity Weight 2.74 0.03 0.07 0.27 0.61 1.26 3.37 3.98 4.14 -- --
Hybrid: Arbitrage 3.25 0.09 0.13 0.37 0.85 1.39 4.04 5.30 5.74 -- --
Rank within category 2 5 7 10 2 2 2 2 4 -- --
Number of funds in category 24 27 27 27 26 25 24 17 15 10 10

As on 23-Oct-2020

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
L&T Arbitrage Opportunities Fund - Regular Plan  | Invest Online
4 star
Jun-14 5.07 5.77 5.91 0.94 1,417
Kotak Equity Arbitrage Fund Regular Plan  | Invest Online
5 star
Sep-05 4.57 5.72 5.93 1.01 15,111
Nippon India Arbitrage Fund  | Invest Online
4 star
Oct-10 4.53 5.87 5.95 1.02 7,168
Edelweiss Arbitrage Fund - Regular Plan  | Invest Online
5 star
Jun-14 4.76 5.77 5.97 1.10 3,316
UTI Arbitrage Fund - Regular Plan  | Invest Online
4 star
Jun-06 4.63 5.73 5.86 0.94 3,105

Best & Worst Performance

Best (Period) Worst (Period)
Week 0.77 (17-May-2017 - 24-May-2017) -0.54 (29-May-2020 - 05-Jun-2020)
Month 1.39 (24-Apr-2017 - 24-May-2017) -0.19 (29-May-2020 - 29-Jun-2020)
Quarter 2.53 (16-Mar-2015 - 15-Jun-2015) 0.19 (29-May-2020 - 28-Aug-2020)
Year 8.54 (30-Jun-2014 - 30-Jun-2015) 4.89 (14-Oct-2019 - 13-Oct-2020)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 5.63 0.73 0.77 1.11 0.49 1.14
CCIL T Bill Liquidity Weight 3.90 0.32 -3.63 -6.95 -- --
Hybrid: Arbitrage 5.19 0.92 0.34 0.51 0.76 1.00
Rank within category 4 3 2 2 2 10
Number of funds in category 17 17 17 17 17 17

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

As on 30-Sep-2020

Asset Allocation (%)

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Concentration & Valuation

Number of Stocks 96
Top 10 Holdings (%) 55.94
Top 5 Holdings (%) 37.97
Top 3 Sectors (%) 0.40
Portfolio P/B Ratio 1.66
Portfolio P/E Ratio 16.77
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
up L&T Liquid Plan Direct-Growth Mutual Fund Unrated 0.00 - 12.09 12.09
equal HDFC Bank Fixed Deposits -- 5.56 - 16.00 8.79
equal ICICI Bank Fixed Deposits -- 5.23 - 15.84 5.23
new 8.95% Reliance Jio Infocomm 2020 Debenture AAA 0.00 - 1.92 1.92
equal Federal Bank Fixed Deposits -- 0.00 - 0.42 0.35

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
up Bharti Airtel Communication -- 6.20 0.00 6.20
up ICICI Bank Financial 28.27 6.62 0.00 5.66
up HDFC Financial 16.86 9.09 0.00 4.70
up Reliance Industries Energy 33.63 8.25 0.00 4.52
up Axis Bank Financial 91.77 4.88 0.00 3.11
up State Bank of India Financial 8.38 3.93 0.00 3.08
up Tata Consumer Products FMCG 85.93 3.90 0.00 2.55
up HPCL Energy 6.92 4.07 0.00 2.06
up Sun Pharmaceutical Inds. Healthcare 160.99 1.98 0.00 1.98
up Aurobindo Pharma Healthcare 15.42 4.68 0.00 1.94
up United Spirits FMCG 177.47 1.81 0.00 1.73
up Vedanta Metals -- 4.61 0.00 1.66
up ITC FMCG 14.52 7.83 0.00 1.63
up Petronet LNG Energy 13.23 3.24 0.00 1.29
up Lupin Healthcare -- 2.05 0.00 1.24
down Tata Power Energy 16.68 3.87 0.00 1.19
new Maruti Suzuki India Automobile 53.25 3.15 0.00 1.13
up Jindal Steel & Power Metals 326.57 2.25 0.00 1.11
up Container Corp. Services 106.22 3.76 0.00 1.07
up Zee Entertainment Services 677.27 1.48 0.00 1.06
up Piramal Enterprises Healthcare 408.61 1.34 0.00 1.03
new Tech Mahindra Technology 20.57 2.09 0.00 1.01
new Bajaj Auto Automobile 20.91 1.57 0.00 1.00
down Glenmark Pharma. Healthcare 14.87 1.69 0.00 0.94
up Balkrishna Industries Automobile 29.36 2.40 0.00 0.87

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 30-Sep-2020

Fund Manager

— Praveen Ayathan since 26-Jun-2014

Education: Mr. Praveen is a B.Sc (Mathematics).

Experience: Prior to joining L&T Investment Management Ltd he has worked with Kotak Mahindra AMC and Dalal & Broacha Stock Broking Pvt. Ltd.

Funds Managed:

— Venugopal Manghat since 26-Jun-2014

Education: Mr. Manghat is a B.Sc (Mathematics) and MBA (Finance).

Experience: Prior to joining L&T Mutual Fund he has worked with Tata Asset Management Ltd.

Interviews:

Funds Managed:

— Jalpan Shah since 24-Jan-2019

Education: Mr. Shah is a B.E. (Mechanical) and holds a PGDM.

Experience: Prior to joining L&T, he was associated with FIL Fund Management Private Limited (Dec 2007-Nov 2012), Lotus India Asset Management Company Private Limited (Sep 2007-Nov 2007) as a Research Analyst, UTI Asset Management Company Private Limited (July 2006-Aug 2007) as a Research Analyst and UTI Asset Management Company Private Limited(May 2004-June 2006) as a Sales & Marketing Manager.

Funds Managed:


0.11%

Change from previous, NAV as on 23-Oct-2020

Growth: ₹ 14.7580

Dividend Quarterly: ₹ 10.6440

Dividend Monthly: ₹ 10.1830


Investment Strategy

The scheme seeks to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 500
Minimum No of Cheques 6
Minimum Withdrawal (₹) 500
Minimum Balance (₹) 500
Exit Load 0.5% for redemption within 30 days

Basic Details

Fund House: L&T Mutual Fund
Launch Date: 30-Jun-2014
Return Since Launch: 6.35%
Benchmark: NIFTY 50 Arbitrage TRI
Riskometer: Moderately Low
Type: Open-ended
Assets: ₹ 1,417 Cr (As on 30-Sep-2020)
Expense: 0.94% (As on 30-Sep-2020)
Risk Grade: Average
Return Grade: Above Average
Turnover: 2,096.24%

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Monthly25-Sep-20200.0300

 28-Aug-20200.0300
 31-Jul-20200.0300
 26-Jun-20200.0300
 29-May-20200.0500
 04-May-20200.0500
 27-Mar-20200.0443
 28-Feb-20200.0443
 31-Jan-20200.0443
 27-Dec-20190.0443
 29-Nov-20190.0443
 01-Nov-20190.0443
 27-Sep-20190.0443
 30-Aug-20190.0443
 26-Jul-20190.0531
 28-Jun-20190.0531
 31-May-20190.0443
 01-Mar-20190.0531
 01-Feb-20190.0620
 30-Nov-20180.0443
 26-Oct-20180.0443
 28-Sep-20180.0443
 31-Aug-20180.0354
 27-Jul-20180.0443
 29-Jun-20180.0443
Dividend Quarterly24-Sep-20200.0900

 25-Jun-20200.1500
 20-Mar-20200.1328
 27-Dec-20190.1328
 24-Sep-20190.1328
 24-Jun-20190.1328
 22-Mar-20190.1328
 27-Dec-20180.1328
 27-Sep-20180.1328
 22-Jun-20180.1328
 23-Mar-20180.1500
 22-Dec-20170.1500
 20-Sep-20170.1500
 21-Jun-20170.1500
 28-Dec-20160.1500
 29-Jun-20160.1500
 23-Mar-20160.2000
 30-Dec-20150.1800
 29-Sep-20150.1800
 29-Jun-20150.1800
 26-Mar-20150.1800
 29-Dec-20140.1800

Contact Information

AMC: L&T Investment Management Ltd

Address: Brindavan Plot No. 177, CST Road Kalina, Santacruz (East) Mumbai - 400098

Phone: 022-66554000 / 1800-2000-400

Fax: 022-66554002

Email: [email protected]

Website: http://www.lntmf.com

Registrar & Transfer Agent: Computer Age Management Services Ltd.

Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai - 600002

Phone: 1800-3010-6767 / 1800-419-7676

Fax: 044-30407101

Email: [email protected]

Website: www.camsonline.com

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