Baroda BNP Paribas Arbitrage Fund(G)-Direct Plan
View the regular plan of this scheme
Rs 16.8134 0.0079(0.047 %) NAV as on 15 May 2025
Scheme Objective: The primary investment objective of the scheme is to generate income and capital appreciation by investing in a combination of diversified portfolio of equity and equity related instruments, including use of equity derivatives strategies and arbitrage opportunities with exposure in debt and fixed income instruments. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme does not guarantee/indicate any returns.
Performance (As on 15 May 2025)
6 month returns | 1 year returns | 3 year returns | 5 year returns | Returns since inception | |
---|---|---|---|---|---|
Scheme | 3.54 % | 7.71 % | 7.27 % | 6.00 % | 6.39 % |
Nifty 50 Arbitrage | 4.07 % | 7.62 % | 7.06 % | 5.54 % | N/A |
Portfolio
Arbitrage funds invest in stocks, but hedge this whole exposure through derivatives. As a result, these funds deliver debt-like returns and are low risk. Where funds do not find arbitrage opportunities, they can invest in debt securities but maintain an equity orientation. The advantage these funds is that they are taxed like equity funds, and are therefore more efficient than debt funds.
These funds suit investors in the high tax brackets who want debt-like returns with better tax efficiency. These funds need to be held for about 1 year.