HSBC Arbitrage Fund(G)-Direct Plan
View the regular plan of this scheme
Rs 20.1127 0.0336(0.167 %) NAV as on 25 Apr 2025
Scheme Objective: The investment objective of the Scheme is to seek to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.
Performance (As on 25 Apr 2025)
6 month returns | 1 year returns | 3 year returns | 5 year returns | Returns since inception | |
---|---|---|---|---|---|
Scheme | 3.89 % | 7.91 % | 7.21 % | 6.07 % | 6.67 % |
Nifty 50 Arbitrage | 4.36 % | 7.56 % | 7.05 % | 5.44 % | 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.