Nippon India Arbitrage Fund(G)-Direct Plan

View the regular plan of this scheme

Rs 27.9683   0.0058(0.021 %) NAV as on 20 Feb 2025
Prime Rating: 4 
Prime Recommendation: Upgrade to see

Fund type:
Hybrid
AUM (in crores):
₹ 14,701.22
Fund category:
Arbitrage Fund
Fund manager(s):
Vikash Agarwal, Siddharth Deb, Rohit Shah
Benchmark:
Nifty 50 Arbitrage
Minimum investment:
₹ 5000
Launch date:
01 Jan 2013
Min. additional investment:
₹ 1000
Expense ratio:
0.38 %
Exit load:
0.25% on or before 1M, Nil after 1M

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 20 Feb 2025)

6 month returns 1 year returns3 year returns5 year returns Returns since inception
Scheme3.71 % 7.89 % 7.08 %6.13 % 7.12 %
Nifty 50 Arbitrage3.86 % 7.64 % 6.76 %5.33 % N/A

Portfolio

Equity holdings
Allocation (%)
Reliance Industries Limited
4.68%
Axis Bank Limited
3.67%
IndusInd Bank Limited
2.71%
ICICI Bank Limited
2.48%
Hindustan Aeronautics Limited
2.39%
Zomato Limited
1.95%
ITC Limited
1.84%
State Bank of India
1.71%
Bharat Electronics Limited
1.67%
Infosys Limited
1.66%
Debt holdings
Allocation (%)
Triparty Repo
3.19%
HDFC Bank Limited**
2.02%
Small Industries Dev Bank of India**
1.01%
Punjab National Bank**
0.84%
7.25% National Bank For Agriculture and Rural Development**
0.75%
Union Bank of India
0.67%
Union Bank of India**
0.67%
Punjab National Bank
0.67%
Bharti Telecom Limited
0.64%
Bank of India**
0.64%

About this category

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.

Suitability

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.

Taxation
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