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HDFC Arbitrage Fund


HDFC Mutual has come out with its new offering called HDFC Arbitrage Fund. It is an open end equity fund.

The investment objective of the fund is to generate income by investing predominantly in arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments.

Asset allocation under normal circumstances:
Equity and equity related instruments: 65-90 per cent

Derivatives: 65-90 per cent
Debt securities and money market instruments: 10-35 per cent

Asset allocation under defensive circumstances (When adequate arbitrage opportunities are not available in the derivative and equity markets)
Equity and equity-related instruments: upto per cent
Derivatives: upto 65 per cent
Debt securities and money market instruments: 35-100 per cent

Snapshot
Face value: Rs 10
Offer opens: September 28, 2007

Offer closes: October 15, 2007
Type: Open-ended equity
Plans: Retail and Wholesale
Options: Growth, Dividend Monthly and Dividend Quarterly
Minimum application amount:
Retail Plan
Growth and Quarterly Dividend Option : Rs 5,000
Quarterly Dividend Plan : Rs. 25000
Wholesale Plan
All the options: : Rs 1 crore
Entry load: Nil
Exit load: The fund would charge an exit load of 0.50% if the units are redeemed or switched out within 3 months from the date of allotment.
Fund managers: Anil Bamboli and Anand Laddha
Benchmark index: Crisil Liquid Fund Index
Performance delivered by funds of similar peer group:

        Ret (%)    
Fund  Launch Date  Assets (Cr)  1mth  3mths  6mths   1yr
Benchmark Derivative Dec-04 59.6 0.8 2.3 4.4 8.9
ICICI Pru Equity & Derivative Income Optimiser Inst Dec-06 - 0.8 2.2 6.5 -
ICICI Pru Equity & Derivative Income Optimiser Retail Dec-06 1349.5 0.7 2.2 6.3 -
ICICI Pru Monthly Interval Plan I Ret May-07 3.8 0.5 1.7 - -
ICICI Prudential Blended Plan A May-05 705.0 0.9 2.5 4.5 10.0
ICICI Prudential Blended Plan B May-05 29.3 0.9 2.8 5.1 8.9
JM Arbitrage Advantage Jun-06 612.3 0.9 2.6 4.7 9.7
JM Equity & Derivative Feb-05 62.0 0.9 2.5 4.1 7.9
Kotak Equity Arbitrage Sep-05 228.7 0.7 2.5 4.7 9.5
Lotus India Arbitrage Apr-07 109.9 0.5 2.3 - -
SBI Arbitrage Opportunities Oct-06 581.0 0.7 2.3 4.5 -
Standard Chartered Arbitrage Nov-06 1311.9 0.7 2.2 4.1 -
Standard Chartered Arbitrage Inst. Nov-06 - 0.8 2.3 4.4 -
UTI SPrEAD Jun-06 270.5 0.8 2.6 4.7 9.7
Return as on 08/10/2007