Nippon India Arbitrage Fund(G)

View the direct plan of this scheme

Rs 25.5494   0.0037(0.015 %) NAV as on 22 Nov 2024
Prime Rating: 5 
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Fund type:
Hybrid
AUM (in crores):
₹ 15,155.71
Fund category:
Arbitrage Fund
Fund manager(s):
Vikash Agarwal, Siddharth Deb, Rohit Shah
Benchmark:
Nifty 50 Arbitrage
Minimum investment:
₹ 5000
Launch date:
14 Oct 2010
Min. additional investment:
₹ 1000
Expense ratio:
1.08 %
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 22 Nov 2024)

6 month returns 1 year returns3 year returns5 year returns Returns since inception
Scheme3.57 % 7.66 % 6.11 %5.28 % 6.87 %
Nifty 50 Arbitrage3.52 % 7.70 % 6.43 %5.12 % N/A

Portfolio

Equity holdings
Allocation (%)
HDFC Bank Limited
5.65%
Reliance Industries Limited
4.61%
Vedanta Limited
2.76%
Axis Bank Limited
2.58%
Adani Enterprises Limited
2.44%
Hindustan Aeronautics Limited
2.44%
Bank of Baroda
2.1%
Bharat Electronics Limited
1.72%
GMR Airports Infrastructure Limited
1.58%
Alkem Laboratories Limited
1.46%
Debt holdings
Allocation (%)
Net Current Assets
4.45%
Triparty Repo
4.4%
HDFC Securities Limited**
1.47%
SBICAP Securities Limited**
0.98%
7.25% National Bank For Agriculture and Rural Development**
0.89%
8.35% HDFC Bank Limited**
0.33%
HDFC Bank Limited**
0.32%
7.2% National Bank For Agriculture and Rural Development**
0.26%
Small Industries Dev Bank of India**
0.16%
Small Industries Dev Bank of India**
0.16%

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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