Arbitrage Fund Equity
| Name | Net Assets |
|---|
| Arbitrage (Cash Long) | 73.22% |
| Bajaj Finserv Mutual Fund | 25.46% |
…
{
"debt": "Debt/Cash 27.29%",
"equity": "Equity 72.71%",
"AFRGG": {
"nav": "10000",
"date": "31-12-2024",
"since": {
"bajajflexi": "6.75",
"bajajsmall": "7.53",
"bajajnifty": "7.42"
},
"6_month_ago": {
"bajajflexi": "6.80",
"bajajsmall": "7.46",
"bajajnifty": "7.43"
}
},
"AFDGG": {
"nav": "10001",
"date": "31-12-2024",
"since": {
"bajajflexi": "7.50",
"bajajsmall": "7.53",
"bajajnifty": "7.42"
},
"6_month_ago": {
"bajajflexi": "7.55",
"bajajsmall": "7.46",
"bajajnifty": "7.43"
}
}
}
Fund Card
Bajaj Finserv Arbitrage Fund
Hybrid
Regular Growth
Direct Growth
| NAV | Risk Type |
|---|---|
|
|
Low
|
For -
Since Inception
1 Year
As on 30-09-2024
Bajaj Finserv Arbitrage Fund
6.76%
Nifty 50 Arbitrage Index
7.49%
CRISIL 1 Year T-Bill Index
7.53%
Summary Note
This is a hybrid fund with Nifty 50 Arbitrage Index (TRI) as its benchmark. The risk level for this fund is categorised as Low.Summary Dynamic Card
Total AUM
₹721.67 crores
as on 31-12-2024
Benchmark
Nifty 50 Arbitrage Index
Min. SIP Amount
₹500
Inception Date
15-09-2023
Benefits
Benefits
Low volatility advantage
Arbitrage index scores favourable on the risk parameters vis-a-vis equities.
No credit risk
The fund endeavors to negate the credit and duration risk by investing in short term debt instruments that are highly rated.
Equity taxation
Arbitrage funds offer a better tax advantage than debt funds.
Summary Investment Philosophy
Investment Objective
The investment objective of the scheme is to seek to generate returns by investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.
Disclaimer: However, there is no assurance that the investment objective of the scheme will be achieved.
Portfolio
Asset Allocation
Under normal circumstances:
Equity and equity-related instruments including derivatives and stock options:
Maximum: 100%, Minimum: 65% (Risk profile - Very high)
Debt and money market instruments including the margin money deployed in derivative
transactions (including units of liquid schemes of Bajaj Finserv Mutual Fund):
Maximum: 35%, Minimum: 0% (Risk profile - Low to moderate)
Non-convertible preference shares:
Maximum: 10%, Minimum: 0% (Risk profile: Very High)
Under defensive circumstances:
Equity and equity related instruments including derivatives and stock options:
Maximum: 65%, Minimum: 0% (Risk profile - High)
Debt and money market instruments including the margin money deployed in derivative
transactions (including units of liquid schemes of Bajaj Finserv Mutual Fund):
Maximum: 100%, Minimum: 35% (Risk profile - Low to moderate)
Non-convertible preference shares:
Maximum: 10%, Minimum: 0% (Risk profile: Very High
For detailed asset allocation, please refer to the Scheme Information Document.
Portfolio - Current Allocation
Top Holding
Top Holding
Top Holdings
Arbitrage (Cash Long)
73.22%
Bajaj Finserv Mutual Fund
25.46%
Allocation by Market Cap
Equities
73.22%
Mutual Fund Units
25.46%
Top Sectors
Banks
19.72%
Petroleum Products
8.97%
Power
4.95%
Automobiles
4.54%
Telecom - Services
4.33%
Finance
4.08%
IT - Software
3.90%
See All Holdings
As on 31-12-2024
Top Holdings
Reverse Repo / TREPS
0.49%
Cash Receivables/Payable
0.32%
Axis Bank Limited (CD)
0.51%
Instrument break-up
Reverse Repo / TREPS & Net Current Assets
0.89%
Cash Receivables/Payable
0.32%
As on 31-12-2024
Historical Returns
Historical Returns (as per SEBI format) As on 31-12-2024
| Tenors | CAGR | Current value of ₹10,000 Invested | ||
|---|---|---|---|---|
| Since Inception | 1Y | Since Inception | 1Y | |
| Bajaj Finserv Arbitrage Fund | 6.75% | 6.80% | 10,883 | 10,685 |
| Nifty 50 Arbitrage Index | 7.53% | 7.46% | 10,986 | 10,752 |
| CRISIL 1 Year T-Bill Index | 7.42% | 7.43% | 10,972 | 10,749 |
Disclaimer: Past performance may or may not be sustained in future.
Different Plans i.e. Regular Plan and Direct Plan under the scheme have different expense structure. Performance is provided for Regular Plan - Growth Option. Inception Date: 15th September 2023 Period for which scheme's performance has been provided is computed basis last day of the previous month preceding the date of this material.
Returns less than 1 year period are simple annualized and greater than 1 year are compounded annualized.
Key Ratios
Portfolio Parameters As on 31-12-2024
YTM
 |
7.29% |
| Average Maturity
|
55 Days |
| Macaulay Duration
|
55 Days |
| Modified Duration
|
53 Days |
YTM details should not be construed as indicative returns and the securities bought by the Fund may or may not be held till the respective maturities.
Who Should Invest/Fund Manager
Who Should Invest?
- Risk-averse investors looking to their park surplus funds.
- Investors who want to take advantage of equity taxation.
- Investors looking for alternatives to overnight funds and savings bank deposits.
Fund Manager
Fund Managers
Scheme Fund Details
Fund Details
Type of Scheme
An open ended scheme investing in arbitrage opportunities.
Minimum Investment
Minimum Application Amount
Fresh subscription - Rs. 500/- and in multiples of Re. 1/-
Systematic Investment Plan (SIP):
From Rs. 500 up to Rs. 1,000: minimum 60 instalments.
Above Rs. 1,000: minimum 6 instalments.
Load Structure
Load Structure/Lock-In Period
Entry load – Not applicable
Exit load – 0.25% of applicable NAV if redeemed/switched out within 15 days from the date of allotment.
Nil, if redeemed/switched out after 15 days from the date of allotment.
The scheme will not levy exit load in case the timelines for rebalancing portfolio as stated in SEBI circular dated March 30, 2022 is not complied with.
Product Label and Riskometer
Product Label and Riskometer
This product is suitable for investors who are seeking*:
- Short term income generation
- Income through arbitrage opportunities in the cash and derivatives segments of the equity markets
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Overview
Bajaj Finserv Arbitrage Fund – Overview
Bajaj Finserv Arbitrage Fund is an open-ended scheme that invests in arbitrage opportunities in the cash and derivatives segments of equity markets. A portion of the portfolio may also be allocated to high-rated debt and money market instruments.
The scheme is suitable to risk-averse investors who want to park surplus funds in a relatively safe investment avenue or those looking for an alternative to savings accounts and overnight funds that can potentially offer reasonable returns. Arbitrage funds can also offer a tax advantage over debt funds.
The scheme has entails relatively low risk and aims to create a market neutral strategy that can find arbitrage potential in different conditions.
Individuals can invest in the Bajaj Finserv Arbitrage Fund via SIP or lumpsum. SIP investments start from Rs. 500.
FAQ
Frequently Asked Questions
An arbitrage fund is an hybrid mutual fund that aims to profit from the price difference of the same asset between two markets. This could include buying an asset at a lower price in the spot market and selling it for higher in the derivatives market or capitalising on the price difference of an asset between two stock exchanges. The purchase and sale transactions are made simultaneously to benefit from brief pricing inefficiencies.
An arbitrage fund is suited to investors with a low-to-moderate risk appetite seeking to earn potentially reasonable returns over a short investment horizon.
No, earnings on arbitrage funds are subject to tax. Arbitrage funds are taxed as equity mutual funds. A short-term capital gains tax of 15% is levied on earnings held for less than year, while a long-term capital gains tax of 10% is levied on earnings held for less than year
Like all mutual funds, arbitrage funds are subject to market risks. However, they fall in the low-risk category. The instantaneous nature of arbitrage trades makes these funds less vulnerable to wider market trends.
No mutual fund investment is risk-free and equity funds are considered to carry greater risk than debt mutual funds. Additionally, flexi cap mutual funds may be more volatile than large cap funds, which tend to offer relatively stable returns because they invest in top-tier companies.
However, a skilled fund manager of a flexi cap fund will aim to mitigate risks by altering the allocation between the different market capitalisations based on the economic conditions and their insights.
Low volatality, no credit risk and benefits on equity taxation are some of the major advantages of Bajaj Finserv Arbitrage Fund.
This scheme can be a suitable option for risk-averse investors looking to park their surplus funds and those who are seeking an alternative to overnight funds.
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