Nippon India Arbitrage Fund(G)-Direct Plan
View the regular plan of this scheme
Rs 26.2937 -0.0366(-0.139 %) NAV as on 02 May 2024
Scheme Objective: The investment objective of the scheme is to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities & money market instruments.
Performance (As on 02 May 2024)
| 6 month returns | 1 year returns | 3 year returns | 5 year returns | Returns since inception | |
|---|---|---|---|---|---|
| Scheme | 4.01 % | 8.21 % | 6.22 % | 5.91 % | 7.06 % |
| Nifty 50 Arbitrage | 3.82 % | 8.02 % | 5.81 % | 5.06 % | 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.
Short-term: Holding period is less than 12 months.
Taxation: Capital gains are taxed at 15%
Long-term: Holding period is 12 months or more.
Taxation: Capital gains up to Rs 100,000 each financial year is tax-exempt. Remaining capital gains is taxed at 10%. For investments made on or before January 31st, 2018: Capital gain up to this date is tax-free.