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1 star

Principal Arbitrage Fund - Direct Plan


Hybrid: Arbitrage

1 Lakh

Investment Grown to
₹ 1.10 Lakh

₹ 10000

Monthly SIP Grown to
₹ 3.75 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 2.67 -0.08 -0.06 0.09 0.50 1.31 2.90 3.27 3.07 -- --
CCIL T Bill Liquidity Weight 1.88 0.01 0.04 0.17 0.44 1.07 2.04 3.20 3.53 -- --
Hybrid: Arbitrage 3.78 -0.08 -0.08 0.26 0.84 1.97 4.10 5.02 5.52 -- --
Rank within category 25 10 3 26 25 25 25 19 16 -- --
Number of funds in category 26 26 26 26 26 26 26 19 16 14 0

As on 07-Dec-2021

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
Principal Arbitrage Fund - Direct Plan
1 star
Apr-16 2.90 3.27 3.07 0.42% 8
Nippon India Arbitrage Fund - Direct Plan
5 star
Jan-13 4.55 5.50 6.05 0.34% 12,136
Aditya Birla Sun Life Arbitrage Fund - Direct Plan  | Invest Online
4 star
Jan-13 4.57 5.37 5.83 0.31% 9,036
UTI Arbitrage Fund - Direct Plan  | Invest Online
4 star
Jan-13 4.51 5.38 5.83 0.35% 6,067
Edelweiss Arbitrage Fund - Direct Plan  | Invest Online
5 star
Jun-14 4.62 5.59 6.05 0.39% 6,017

Best & Worst Performance

Best Performance Worst Performance
Return (%) Period Return (%) Period
Week 0.53 17-Apr-2020 - 24-Apr-2020 -3.08 18-Sep-2018 - 25-Sep-2018
Month 0.94 29-Jan-2020 - 28-Feb-2020 -5.09 24-Aug-2018 - 25-Sep-2018
Quarter 1.91 10-May-2016 - 09-Aug-2016 -4.46 02-Jul-2018 - 01-Oct-2018
Year 6.30 27-May-2016 - 29-May-2017 -1.07 04-Sep-2018 - 04-Sep-2019

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 3.25 0.89 -0.60 -0.80 0.50 -0.23
CCIL T Bill Liquidity Weight 3.18 0.40 -1.54 -4.30 -- --
Hybrid: Arbitrage 4.95 0.79 1.49 2.21 0.79 1.64
Rank within category 19 19 19 19 2 19
Number of funds in category 19 19 19 19 19 19

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

As on 30-Nov-2021

Asset Allocation (%)

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Concentration & Valuation

Number of Stocks 14
Top 10 Holdings (%) 55.91
Top 5 Holdings (%) 33.48
Top 3 Sectors (%) 0.03
Portfolio P/B Ratio 2.64
Portfolio P/E Ratio 20.19
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
new Reserve Bank of India 182-D 09/12/2021 Treasury Bills SOV 0.00 - 4.95 4.95
new 8.79% GOI 2021 Central Government Loan SOV 0.00 - 3.11 3.11
new Reserve Bank of India 91-D 23/12/2021 Treasury Bills SOV 0.00 - 2.47 2.47
new Reserve Bank of India 91-D 06/01/2022 Treasury Bills SOV 0.00 - 0.12 0.12

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
equal Larsen & Toubro Construction 28.85 8.40 0.00 7.57
equal Dr. Reddy's Lab Healthcare 38.42 9.58 0.00 7.23
up Reliance Industries Energy 30.82 9.65 0.00 7.09
equal Grasim Industries Construction 18.09 6.80 0.00 6.09
equal Tech Mahindra Technology 30.09 6.05 0.00 5.50
equal JSW Steel Metals 8.00 7.22 0.00 4.49
equal Aurobindo Pharma Healthcare 7.58 9.63 0.00 4.45
new ITC FMCG 19.05 4.43 0.00 4.43
down ICICI Bank Financial 24.03 10.52 0.00 4.11
equal DLF Construction 58.78 3.94 0.00 3.27
equal LIC Housing Fin. Financial 14.01 3.66 0.00 3.03
new Hindustan Unilever FMCG 64.96 2.67 0.00 2.67
down HDFC Bank Financial 24.70 4.10 0.00 2.16
equal State Bank of India Financial 14.85 8.82 0.00 1.87

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 31-Oct-2021

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 07-Dec-2021

Growth: ₹ 12.1461

IDCW Monthly: ₹ 10.5038


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 (₹) 500
Minimum No of Cheques 12
Minimum Withdrawal (₹) 500
Minimum Balance (₹) 1
Lock-in Period Not Applicable
Exit Load 0.5% for redemption within 30 days

Basic Details

Fund House: Principal Mutual Fund
Launch Date: 21-Apr-2016
Return Since Launch: 3.51%
Benchmark: NIFTY 50 Arbitrage TRI
Riskometer: Low
Type: Open-ended
Assets: ₹ 8 Cr (As on 31-Oct-2021)
Expense: 0.42% (As on 31-Oct-2021)
Risk Grade: High
Return Grade: Low
Turnover: 35.00%

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
IDCW Monthly17-Aug-20200.0478

 17-Jun-20200.0563
 15-May-20200.0566
 17-Apr-20200.0567
 17-Mar-20200.0503
 17-Sep-20190.0523
 16-Aug-20190.0525
 17-Jun-20190.0560
 17-May-20190.0561
 16-Apr-20190.0560
 15-Mar-20190.0563
 15-Feb-20190.0566
 17-Sep-20180.0554
 17-Aug-20180.0562
 17-Jul-20180.0563
 15-Jun-20180.0544
 17-May-20180.0544
 17-Apr-20180.0545
 16-Mar-20180.0616
 15-Sep-20170.0623
 17-Mar-20170.0473
 17-Feb-20170.0473
 17-Jan-20170.0516
 15-Dec-20160.0517
 15-Nov-20160.0517

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

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