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5 star

Kotak Equity Arbitrage Fund Regular Plan


Hybrid: Arbitrage

1 Lakh

Investment Grown to
₹ 1.18 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 3.29 0.08 0.10 0.39 0.66 1.84 4.74 5.80 5.97 6.81 7.34
CCIL T Bill Liquidity Weight 2.45 0.02 0.02 0.17 0.56 1.65 3.48 4.01 4.19 4.68 4.76
Hybrid: Arbitrage 2.89 0.07 0.10 0.35 0.57 1.48 4.24 5.37 5.78 6.53 7.10
Rank within category 8 10 11 5 9 10 8 5 3 1 2
Number of funds in category 24 27 27 26 25 25 24 17 15 10 9

As on 18-Sep-2020

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
Kotak Equity Arbitrage Fund Regular Plan  | Invest Online
5 star
Sep-05 4.74 5.80 5.97 1.01 15,000
Nippon India Arbitrage Fund  | Invest Online
4 star
Oct-10 4.72 5.93 5.99 1.02 7,384
Aditya Birla Sun Life Arbitrage Fund  | Invest Online
4 star
Jul-09 4.67 5.67 5.80 0.90 4,099
Edelweiss Arbitrage Fund - Regular Plan  | Invest Online
5 star
Jun-14 5.00 5.84 6.01 1.09 3,501
UTI Arbitrage Fund - Regular Plan  | Invest Online
4 star
Jun-06 4.79 5.80 5.90 0.93 2,998

Best & Worst Performance

Best (Period) Worst (Period)
Week 1.22 (16-Jan-2008 - 23-Jan-2008) -0.54 (29-May-2020 - 05-Jun-2020)
Month 1.89 (24-Dec-2007 - 23-Jan-2008) -0.25 (29-May-2020 - 29-Jun-2020)
Quarter 3.08 (25-Jan-2007 - 27-Apr-2007) -0.02 (29-May-2020 - 28-Aug-2020)
Year 10.80 (22-Jan-2007 - 22-Jan-2008) 3.97 (06-Jul-2009 - 06-Jul-2010)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 5.66 0.76 0.68 0.82 0.71 1.35
CCIL T Bill Liquidity Weight 3.97 0.31 -3.79 -6.90 -- --
Hybrid: Arbitrage 5.25 0.92 0.33 0.48 0.76 1.01
Rank within category 5 8 5 5 11 3
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 31-Aug-2020

Asset Allocation (%)

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Concentration & Valuation

Number of Stocks 122
Top 10 Holdings (%) 49.60
Top 5 Holdings (%) 35.94
Top 3 Sectors (%) --
Portfolio P/B Ratio 2.09
Portfolio P/E Ratio 19.48

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 Kotak Liquid - Plan A - Direct Plan-Gr Mutual Fund -- 0.00 - 9.61 9.22
equal Axis Bank Term Deposits -- 3.79 - 12.90 8.63
equal HDFC Bank Term Deposits -- 5.90 - 11.13 7.80
equal Federal Bank Term Deposits -- 0.63 - 1.65 0.91
equal AU Small Finance Bank Term Deposits -- 0.28 - 0.47 0.33

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 Reliance Industries Energy 36.70 10.20 0.00 5.29
down HDFC Financial 14.08 6.96 0.02 5.00
up Infosys Technology 25.08 5.39 0.00 3.33
down Bharti Airtel Communication -- 5.11 0.00 3.05
down ICICI Bank Financial 25.08 4.31 0.00 2.70
down Hindustan Unilever FMCG 71.98 4.50 0.00 2.37
up Tata Consultancy Services Technology 29.46 3.77 0.00 2.20
up State Bank of India Financial 7.96 3.41 0.00 2.19
up ITC FMCG 15.25 3.42 0.00 1.72
up Dr. Reddy's Lab Healthcare 45.55 1.44 0.14 1.44
down Axis Bank Financial 80.21 2.68 0.00 1.28
up Cipla Healthcare 39.52 1.34 0.00 1.20
down JSW Steel Metals 28.48 1.71 0.03 1.17
down Larsen & Toubro Construction 15.08 2.01 0.00 1.10
up Indian Oil Corp. Energy -- 0.96 0.00 0.96
up SBI Life Insurance Company Financial 58.84 1.01 0.00 0.94
up Sun Pharmaceutical Inds. Healthcare 173.92 3.18 0.12 0.89
up Wipro Technology 18.60 1.44 0.00 0.86
down Grasim Industries Construction 14.31 2.51 0.03 0.79
up Vedanta Metals -- 1.67 0.16 0.77
down Adani Ports and Special Economic Zone Services 20.77 2.29 0.00 0.76
down Aurobindo Pharma Healthcare 16.31 1.68 0.09 0.74
up Dabur India FMCG 63.05 1.45 0.10 0.72
down Tata Consumer Products FMCG 98.23 0.89 0.00 0.71
up Bajaj Finserv Financial 25.07 1.50 0.11 0.67

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-Aug-2020

Fund Manager

— Hiten Shah since 03-Oct-2019

Education: Mr. Shah is a Masters in Management Studies (Finance) from Mumbai University.

Experience: Prior to joining Edelweiss Asset Management Limited (since July 2011) he was associated with Edelweiss Securities Limited as Low Risk Arbitrage Trader for over three years.

Funds Managed:


0.08%

Change from previous, NAV as on 18-Sep-2020

Growth: ₹ 28.4995

Dividend Monthly: ₹ 10.7235

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Dividend Fortnightly: ₹ 23.0370

Dividend Bimonthly: ₹ 20.0443


Investment Strategy

The scheme aims to generate income through arbitrage opportunities emerging out of pricing anomaly between the spot & futures market; and also through deployment of surplus cash in fixed income instruments.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 500
Minimum No of Cheques 10
Minimum Withdrawal (₹) 1,000
Minimum Balance (₹) 1,000
Exit Load 0.25% for redemption within 30 days

Basic Details

Fund House: Kotak Mahindra Mutual Fund
Launch Date: 29-Sep-2005
Return Since Launch: 7.24%
Benchmark: NIFTY 50 Arbitrage
Riskometer: Moderately Low
Type: Open-ended
Assets: ₹ 15,000 Cr (As on 31-Aug-2020)
Expense: 1.01% (As on 31-Aug-2020)
Risk Grade: Below Average
Return Grade: Above Average
Turnover: 384.45%

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Fortnightly08-Sep-20200.0370

 25-Aug-20200.0321
 28-Jul-20200.0311
 14-Jul-20200.0100
 30-Jun-20200.0387
 16-Jun-20200.0055
 02-Jun-20200.0577
 19-May-20200.0441
 05-May-20200.0692
 21-Apr-20200.0829
 08-Apr-20200.0100
 24-Mar-20200.0593
 11-Mar-20200.0415
 25-Feb-20200.0411
 11-Feb-20200.0492
 28-Jan-20200.0437
 14-Jan-20200.0531
 31-Dec-20190.0251
 17-Dec-20190.0379
 03-Dec-20190.0348
 19-Nov-20190.0303
 05-Nov-20190.0583
 23-Oct-20190.0293
 09-Oct-20190.0528
 24-Sep-20190.0398
Dividend Monthly24-Aug-20200.0204

 27-Jul-20200.0097
 22-Jun-20200.0280
 26-May-20200.0541
 27-Apr-20200.0344
 23-Mar-20200.0737
 24-Feb-20200.0416
 27-Jan-20200.0412
 23-Dec-20190.0338
 25-Nov-20190.0413
 29-Oct-20190.0376
 23-Sep-20190.0311
 26-Aug-20190.0601
 22-Jul-20190.0511
 24-Jun-20190.0551
 27-May-20190.0691
 24-Apr-20190.0593
 25-Mar-20190.0328
 25-Feb-20190.0359
 28-Jan-20190.0515
 24-Dec-20180.0367
 26-Nov-20180.0597
 22-Oct-20180.0605
 24-Sep-20180.0413
 27-Aug-20180.0441
Dividend Bimonthly28-Jul-20200.0707

 27-May-20200.1520
 24-Mar-20200.2157
 28-Jan-20200.1401
 26-Nov-20190.1647
 24-Sep-20190.1643
 23-Jul-20190.1991
 28-May-20190.2404
 26-Mar-20190.1287
 29-Jan-20190.1653
 27-Nov-20180.2253
 25-Sep-20180.1680
 24-Jul-20180.1821
 29-May-20180.1892
 23-Mar-20180.1975
 23-Jan-20180.1815
 28-Nov-20170.1990
 26-Sep-20170.2114
 25-Jul-20170.2164
 22-May-20170.1692
 27-Mar-20170.2033
 23-Jan-20170.1663
 21-Nov-20160.2109
 26-Sep-20160.2159
 25-Jul-20160.2425

Contact Information

AMC: Kotak Mahindra Asset Management Company Ltd

Address: 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai - 400051

Phone: 022-61152100 / 1800-22-2626

Fax: 022-66384455

Email: [email protected]

Website: http://www.kotakmutual.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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