HDFC Arbitrage Fund Retail Growth
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|Fund Type||Arbitrage Fund|
|Exit Load||0.25% for 31 Days|
More about this fund
|Cash Offset For Derivatives||68.13%|
|Adani Ports & Special Economic Zone Ltd||5.62%|
|Future on Adani Ports & Special Economic Zone Ltd||5.62%|
|Future on Reliance Industries Ltd Shs Dematerialised||5.39%|
|Reliance Industries Ltd Shs Dematerialised||5.39%|
|Future on Bharti Airtel Ltd||4.81%|
|Bharti Airtel Ltd||4.81%|
|Future on Tata Steel Ltd.||4.67%|
|Tata Steel Ltd||4.67%|
|Treps - Tri-Party Repo||3.86%|
About HDFC Arbitrage Fund
The HDFC Arbitrage Fund is an open-ended equity scheme. It seeks to generate income by investing in arbitrage opportunities between the cash and derivative markets and also with the derivative segment. Further, it deploys its surplus cash in debt securities and money market instruments.
Pros & Cons of HDFC Arbitrage Fund
The scheme seeks to generate income through arbitrage opportunities like 1. The Index/ Stock Spot vs the Index/ Stock Futures or 2. Index Futures vs Stock Futures or 3. Futures of the same stock with different expiry tenures or 4. ADR/GDR vs Underlying Shares, etc.
As on September 30, 2018, the scheme is ranked 3 under CRISIL’s Arbitrage Fund category. Further, it has generated returns of 6.77% per year over the last 10 years (as on January 04, 2018).
Fund Information and Statistics of HDFC Arbitrage Fund
i) Inception / Launch date
The scheme was launched on 23 October 2007 by HDFC Mutual Fund.
ii) Risk level
The scheme is suitable for investors looking at long-term capital appreciation and invests in arbitrage opportunities between the cash and derivative markets along with opportunities for arbitrage within the derivative segment. It has a moderately-low risk level.
The minimum redemption amount is Rs. 500 and multiples of Re. 1 thereafter. Further, the redemption proceeds are dispatched within 3-10 business days of the receipt of a valid redemption request.
iv) Fund Manager
Mr. Krishan Kumar Daga and Mr. Rakesh Vyas are the Fund Managers of the HDFC Arbitrage Fund.
v) Entry / Exit load
There is no entry load in this scheme. The exit load structure is as follows: 1. If the units are redeemed within 1 month from the date of allotment of the units, then the exit load = 0.25% of the applicable NAV 2. If the units are redeemed after 1 month from the date of allotment of the units, then the exit load = Nil
Tax benefits of investing in HDFC Arbitrage Fund
The following taxes are applicable to income arising from investing in this scheme: 1. STCG tax (units are held for a period of less than 12 months) of 15 percent on redemption of units. 2. LTCG (units are held for a period of more than 12 months), in excess of Rs 1 lakh, component is taxed at 10 percent without indexation benefits on the redemption of units.
About HDFC Mutual Fund
Being one of the leading mutual fund investment companies, HDFC Mutual Fund offers a wide array of mutual fund products for its customers, investors and patrons. The schemes vary from Fund of Funds (FOFs), to liquid fund to equity funds and regular debt fund amongst a wide range of other mutual fund products
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All investments come with risk. Risk is the volatility or fluctuation in the price (and returns) of the investment. Usually,
- High Risk = High possible returns
- Low Risk = Stable, relatively lower returns