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Unrated

Principal Arbitrage Fund - Regular Plan


Hybrid: Arbitrage

1 Lakh

Investment Grown to
₹ 1.07 Lakh

₹ 10000

Monthly SIP Grown to
₹ 3.71 Lakh

Suitability:

Arbitrage funds invest in equity shares and derivatives and earn their returns through price differential between a stock and its futures. By investing in these funds, you can expect to earn better returns than what you would get from a bank account.

Arbitrage funds keep their equity investments fully hedged, which basically means that their returns are not impacted by the day-to-day ups and downs of the stock market. The risk of incurring a loss in these funds is low but they do not guarantee returns or safety of capital.

Retail investors can avoid these funds altogether. We believe that liquid funds are a better alternative with a somewhat similar risk-return payoff but better liquidity.

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 paid by the mutual fund scheme are taxed at the rate of 10% (effectively 11.648%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT). Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.

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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 1.48 0.08 -0.08 -0.08 0.09 1.21 2.74 2.30 -- -- --
CCIL T Bill Liquidity Weight 2.07 0.03 0.05 0.26 0.89 1.91 3.96 4.16 -- -- --
Hybrid: Arbitrage 2.32 0.06 -0.09 0.10 0.70 2.04 4.70 5.55 -- -- --
Rank within category 22 4 10 24 24 22 22 17 -- -- --
Number of funds in category 24 26 26 25 25 24 23 17 15 10 9

As on 10-Jul-2020

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
Principal Arbitrage Fund - Regular Plan
Unrated
Apr-16 2.74 2.30 -- 0.90 6
Kotak Equity Arbitrage Fund Regular Plan  | Invest Online
5 star
Sep-05 5.12 5.98 6.11 0.98 15,853
Nippon India Arbitrage Fund  | Invest Online
5 star
Oct-10 5.17 6.11 6.13 1.02 7,847
Aditya Birla Sun Life Arbitrage Fund  | Invest Online
4 star
Jul-09 5.16 5.86 5.94 0.90 4,387
Edelweiss Arbitrage Fund - Regular Plan  | Invest Online
5 star
Jun-14 5.43 6.03 6.17 1.09 3,708

Best & Worst Performance

Best (Period) Worst (Period)
Week 0.52 (17-Apr-2020 - 24-Apr-2020) -3.09 (18-Sep-2018 - 25-Sep-2018)
Month 0.90 (29-Jan-2020 - 28-Feb-2020) -5.14 (24-Aug-2018 - 25-Sep-2018)
Quarter 1.74 (10-May-2016 - 09-Aug-2016) -4.60 (02-Jul-2018 - 01-Oct-2018)
Year 5.59 (02-Jun-2017 - 04-Jun-2018) -1.56 (11-Apr-2018 - 11-Apr-2019)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 2.42 3.17 -0.91 -0.52 2.29 -0.07
CCIL T Bill Liquidity Weight 4.07 0.28 -4.34 -7.86 -- --
Hybrid: Arbitrage 5.52 0.84 0.51 0.74 0.48 0.81
Rank within category 17 17 17 16 17 16
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-Jun-2020

Asset Allocation (%)

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Concentration & Valuation

Number of Stocks 16
Top 10 Holdings (%) 51.66
Top 5 Holdings (%) 33.46
Top 3 Sectors (%) 0.16
Portfolio P/B Ratio 1.17
Portfolio P/E Ratio 13.70

Value Research Equity Fund Style

Value Research Debt Fund Style

Credit Rating vis-à-vis Category

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Sector Allocation vis-à-vis Category

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Top Equity Holdings

Company Sector P/E 3Y High 3Y Low % Assets
up Tata Motors Automobile -- 9.72 0.00 9.14
up Bharti Airtel Communication -- 8.75 0.00 8.46
equal State Bank of India Financial 8.83 8.82 0.00 6.12
down Aurobindo Pharma Healthcare 16.99 11.06 0.00 4.91
equal Dr. Reddy's Lab Healthcare 32.05 5.07 0.00 4.83
up Larsen & Toubro Construction 13.71 7.11 0.00 4.24
down Zee Entertainment Services 10.31 6.21 0.00 4.19
up JSW Steel Metals 11.59 7.22 0.00 3.34
up Sun Pharmaceutical Inds. Healthcare 31.45 9.53 0.00 3.24
new DLF Construction -- 3.19 0.00 3.19
equal Axis Bank Financial 66.93 4.12 0.00 3.19
equal ICICI Bank Financial 24.39 7.62 0.00 3.15
up Grasim Industries Construction 9.09 4.05 0.00 2.88
down Indusind Bank Financial 8.39 5.49 0.00 2.48
equal Maruti Suzuki India Automobile 31.71 2.60 0.00 1.91
up Century Textiles & Inds. Diversified 9.65 3.76 0.00 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 30-Jun-2020

Fund Manager

— Rajat Jain since 28-Mar-2016

Education: Mr. Jain is a B.E (Mechanical) and PGDM (Management) from IIM Lucknow.

Experience: Prior to joining Principal Mutual Fund he has worked with this he was with SBI Mutual Fund.

Funds Managed:


0.08%

Change from previous, NAV as on 10-Jul-2020

Growth: ₹ 11.4223

Dividend Monthly: ₹ 10.0428


Investment Strategy

The scheme seeks to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 100
Minimum No of Cheques 12
Minimum Withdrawal (₹) 500
Minimum Balance (₹) 1
Exit Load 0.5% for redemption within 30 days

Basic Details

Fund House: Principal Mutual Fund
Launch Date: 21-Apr-2016
Return Since Launch: 3.20%
Benchmark: NIFTY 50 Arbitrage
Riskometer: Moderately Low
Type: Open-ended
Assets: ₹ 6 Cr (As on 30-Jun-2020)
Expense: 0.90% (As on 30-Jun-2020)
Risk Grade: --
Return Grade: --
Turnover: 132.00%

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Monthly17-Jun-20200.0556

 15-May-20200.0559
 17-Apr-20200.0561
 17-Mar-20200.0498
 17-Sep-20190.0519
 17-Jun-20190.0553
 17-May-20190.0554
 16-Apr-20190.0554
 15-Mar-20190.0556
 15-Feb-20190.0559
 17-Sep-20180.0549
 17-Aug-20180.0557
 17-Jul-20180.0558
 15-Jun-20180.0539
 17-May-20180.0539
 17-Apr-20180.0540
 16-Mar-20180.0611
 17-Mar-20170.0470
 17-Feb-20170.0470
 17-Jan-20170.0514
 15-Dec-20160.0515
 15-Nov-20160.0515
 24-Oct-20160.0516

Contact Information

AMC: Principal Asset Management Pvt. Ltd.

Address: Exchange Plaza - 2rd Floor - NSE Building, "B" Wing-Bandra Kurla Complex, Bandra (East), Mumbai - 400051

Phone: 022-67720555 / 1800-425-5600

Fax: 022-67720512

Email: [email protected]

Website: http://www.principalindia.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

Upcoming Video

Value Investing

Evaluating Covid-affected financials of India Inc

dateFriday, 17-Jul-2020
time12:30 PM - 01:00 PM