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4 star

L&T Arbitrage Opportunities Fund - Direct Plan


Hybrid: Arbitrage

1 Lakh

Investment Grown to
₹ 1.19 Lakh

₹ 10000

Monthly SIP Grown to
₹ 3.90 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 2.17 0.04 0.15 0.52 1.47 2.44 4.40 5.87 6.27 -- --
CCIL T Bill Liquidity Weight 0.86 0.00 0.06 0.17 0.51 0.97 2.13 3.57 3.79 -- --
Hybrid: Arbitrage 1.88 0.04 0.13 0.45 1.33 2.13 3.69 5.40 5.87 -- --
Rank within category 5 11 5 3 5 5 3 4 4 -- --
Number of funds in category 27 27 27 27 27 27 25 18 16 10 0

As on 15-Jun-2021

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 - Direct Plan  | Invest Online
4 star
Jun-14 4.40 5.87 6.27 0.32 4,488
Kotak Equity Arbitrage Fund - Direct Plan  | Invest Online
4 star
Jan-13 4.22 5.81 6.18 0.44 20,291
Nippon India Arbitrage Fund - Direct Plan
5 star
Jan-13 4.18 5.95 6.36 0.34 11,792
Aditya Birla Sun Life Arbitrage Fund - Direct Plan  | Invest Online
4 star
Jan-13 4.13 5.80 6.16 0.32 6,250
Edelweiss Arbitrage Fund - Direct Plan  | Invest Online
5 star
Jun-14 4.14 6.00 6.36 0.34 5,503

Best & Worst Performance

Best Performance Worst Performance
Return (%) Period Return (%) Period
Week 0.78 17-May-2017 - 24-May-2017 -0.53 29-May-2020 - 05-Jun-2020
Month 1.44 24-Apr-2017 - 24-May-2017 -0.15 29-May-2020 - 29-Jun-2020
Quarter 2.68 16-Mar-2015 - 15-Jun-2015 0.32 29-May-2020 - 28-Aug-2020
Year 9.21 30-Jun-2014 - 01-Jul-2015 3.81 29-May-2020 - 31-May-2021

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 5.79 0.78 1.90 2.94 0.70 2.03
CCIL T Bill Liquidity Weight 3.52 0.39 -2.00 -4.76 -- --
Hybrid: Arbitrage 5.32 0.95 1.39 2.08 0.80 1.65
Rank within category 4 3 2 1 5 6
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 31-May-2021

Asset Allocation (%)

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Concentration & Valuation

Number of Stocks 122
Top 10 Holdings (%) 40.10
Top 5 Holdings (%) 28.10
Top 3 Sectors (%) 0.02
Portfolio P/B Ratio 2.19
Portfolio P/E Ratio 18.36
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 L&T Liquid Plan Direct-Growth Mutual Fund Unrated 0.00 - 19.22 12.06
up Reserve Bank of India 364-D 03/02/2022 Treasury Bills SOV 0.00 - 2.17 2.17
up Reserve Bank of India 364-D 24/03/2022 Treasury Bills SOV 0.00 - 2.16 2.16
new Reserve Bank of India 364-D 30/03/2022 Treasury Bills SOV 0.00 - 2.16 2.16
equal HDFC Bank Fixed Deposits -- 1.79 - 16.00 1.79
equal Reserve Bank of India 2021 Treasury Bills SOV 0.00 - 1.45 1.11
equal National Bank Agr. Rur. Devp 302-D 01/12/2021 Commercial Paper A1+ 0.00 - 1.43 1.09
equal Reserve Bank of India 364-D 09/09/2021 Treasury Bills SOV 0.00 - 1.30 0.99
equal 8.20% GOI 15/02/2022 Central Government Loan SOV 0.00 - 0.75 0.59
equal National Bank Agr. Rur. Devp 2021 Certificate of Deposit A1+ 0.00 - 0.73 0.56
equal Axis Bank 2021 Certificate of Deposit A1+ 0.00 - 0.72 0.55
equal Reserve Bank of India 182-D 14/10/2021 Treasury Bills SOV 0.00 - 0.63 0.55
new Reserve Bank of India 182-D 21/10/2021 Treasury Bills SOV 0.00 - 0.55 0.55
equal HDFC 357-D 11/10/2021 Commercial Paper A1+ 0.00 - 0.70 0.55
equal Reserve Bank of India 364-D 20/01/2022 Treasury Bills SOV 0.00 - 0.69 0.54
equal Reserve Bank of India 364-D 10/02/2022 Treasury Bills SOV 0.00 - 0.62 0.54
equal Reserve Bank of India 364-D 03/03/2022 Treasury Bills SOV 0.00 - 0.62 0.54
equal Reserve Bank of India 364-D 11/03/2022 Treasury Bills SOV 0.00 - 0.62 0.54
equal Reserve Bank of India 364-D 13/01/2022 Treasury Bills SOV 0.00 - 0.63 0.44
equal 6.84% GOI 19/12/2022 GOI Securities SOV 0.00 - 0.19 0.12
equal The Federal Bank Fixed Deposits -- 0.00 - 0.42 0.12
equal Others Margin Money -- - -0.49

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 4.75
down Adani Ports and Special Economic Zone Services 31.13 6.65 0.00 4.51
up State Bank of India Financial 17.11 3.93 0.00 3.63
up Vedanta Metals 8.68 4.61 0.00 3.16
down HDFC Financial 24.52 9.09 0.00 3.15
up Bharat Petroleum Corporation Energy 6.47 3.71 0.00 2.34
down ICICI Bank Financial 24.29 6.81 0.00 2.04
down ITC FMCG 19.37 7.83 0.00 2.04
up Tata Steel Metals 18.88 2.96 0.00 1.98
down UPL Chemicals 22.41 3.54 0.00 1.96
up SAIL Metals 13.67 1.65 0.00 1.65
up Tata Power Company Energy 34.61 3.87 0.00 1.44
up Infosys Technology 32.43 7.87 0.00 1.42
up Zee Entertainment Services 27.67 1.48 0.00 1.36
up Jindal Steel & Power Metals 8.17 1.45 0.00 1.25
up Divi's Laboratories Healthcare 57.70 1.90 0.00 1.23
up Bank of Baroda Financial 28.42 3.68 0.00 1.15
down Sun Pharmaceutical Industries Healthcare 55.62 2.54 0.00 1.07
up Apollo Hospitals Healthcare 234.97 1.08 0.00 1.03
down Reliance Industries Energy 30.97 8.25 0.00 0.95
down NMDC Metals 14.11 2.92 0.00 0.95
down Indian Oil Corporation Energy 5.03 1.39 0.00 0.87
up Punjab National Bank Financial 18.22 2.73 0.00 0.82
up Tech Mahindra Technology 23.34 2.09 0.00 0.80
up Manappuram Finance Financial 8.26 1.28 0.00 0.79

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-May-2021

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:

— Jalpan Shah since 24-Jan-2019

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

Experience: Prior to joining L&T Mutual Fund, 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.

Interviews:

Funds Managed:


0.04%

Change from previous, NAV as on 15-Jun-2021

Growth: ₹ 15.7520

IDCW Quarterly: ₹ 11.1270

IDCW Monthly: ₹ 10.4840


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
Lock-in Period Not Applicable
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: 6.74%
Benchmark: NIFTY 50 Arbitrage TRI
Riskometer: Low
Type: Open-ended
Assets: ₹ 4,488 Cr (As on 31-May-2021)
Expense: 0.32% (As on 30-Apr-2021)
Risk Grade: Average
Return Grade: Above Average
Turnover: 1,674.17%

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
IDCW Monthly28-May-20210.0300

 30-Apr-20210.0500
 26-Mar-20210.0300
 26-Feb-20210.0300
 29-Jan-20210.0200
 01-Jan-20210.0300
 27-Nov-20200.0300
 30-Oct-20200.0300
 25-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
IDCW Quarterly23-Dec-20200.0900

 24-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
 23-Mar-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-20140.2000

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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Your investment strategy after the debt fund fiasco

DateFriday, 18-Jun-2021
Time12:30 PM - 01:00 PM