- Mutual Funds
- Nippon Mutual Fund
- Nippon India Arbitrage Fund (Growth)
Formerly Reliance Arbitrage Gr
Arbitrage funds provides relative safety of capital with growth at par with inflation and is suitable for investment objectives with duration of 1-5 years or longer.
Investment Calculator
Investment Duration5 years
0
Total Investment0
Wealth Gained0
Total Corpus Created (₹)
With CAGR of 11.25 % in 5 yearsHistorical NAV
₹ 24.5307
NAV (Apr 18)
Fund Returns
Last 1Y | 7.7% |
Last 3Y | 5.5% |
Last 5Y | 5.2% |
Last 10Y | 6% |
Since Inception | 6.9% |
6 Month CAGR | 3.9% |
Scheme Information
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 indeb tsecurities & money market instruments.
Expense Ratio | 1.06 |
Launched (14y ago) | Oct 14, 2010 |
AUM in Crores | 13895.862 |
ISIN | INF204K01IY1 |
Lock-in | No Lock-in |
Benchmark | NIFTY 50 Arbitrage TR INR |
SIP Minimum | 1000 |
Lumpsum Min. | 5000 |
Standard Deviation (3yr) | 0.6 |
Standard Deviation (5yr) | 0.8 |
Beta (3yr) | 0 |
Beta (5yr) | 0 |
Sharpe Ratio (3yr) | -0.026 |
Sharpe Ratio (5yr) | 0.031 |
YTM | 0 |
Returns Calculator Comparison
of
for
with step up of
| Asset | Returns | Total Corpus | Gains | CAGR |
|---|---|---|---|---|
| Nippon India Arbitrage Fund (Growth) | 8,30,002 | 97,390 | 5.2% | |
| EPF | 9,00,761 | 1,68,149 | 8.50% | |
| Property | 8,67,662 | 1,35,050 | 7.00% | |
| PPF | 8,69,819 | 1,37,207 | 7.10% | |
| Bank FD | 8,46,471 | 1,13,859 | 6.00% | |
| Gold | 8,46,471 | 1,13,859 | 6.00% | |
| Savings Bank | 8,25,950 | 93,338 | 5.00% |
Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.
Asset allocation and Holdings
Top Debt Holdings
cash offset for derivatives
73.1%nippon india liquid dir gr
9.1%nippon india money market dir gr
7.3%hdfc bank limited_25/04/2024
6.6%hdfc bank ltd
6.5%Allocation by Sector
financial services
24.9%industrials
10.3%energy
8.1%basic materials
6.9%healthcare
4.6%Comparison with Debt Funds
| Fund Name | Fund Size | Rolling Returns |
|---|---|---|
₹ 4,923 cr | ||
₹ 10,293 cr | ||
₹ 35,428 cr | ||
₹ 13,848 cr | ||
₹ 13,895 cr |
About the AMC
Nippon Life India Asset Management Ltd
| Fund Name | Scripbox Opinion | Till Date CAGR | |
|---|---|---|---|
5.5% | 6.9% | ||
5.5% | 6.7% | ||
5.5% | 5.8% | ||
5.5% | 6.7% | ||
5.5% | 5.8% |
Nippon India Arbitrage Fund (Growth) is an open ended scheme investing in arbitrage opportunities. The scheme’s investment goal is to create a return by utilising arbitrage possibilities that may occur between the cash and derivative markets. Such arbitrage opportunities might as well exist within the derivative segment, along with investments in debt securities and money market instruments. The fund is suitable if you wish to park your idle funds for a short period ranging from 3 months to a year. The goal of arbitrage funds is to profit from the price differences between securities in two different marketplaces. The securities are purchased on the cash market at a lower price and sold on the futures market at a higher price. The profit gained by arbitrage is the difference. As a result, arbitrage funds thrive in a volatile market.
Investment Objective of Nippon India Arbitrage Fund (Growth)
The investment objective of Nippon India Arbitrage Fund (Growth) is to create returns by utilizing arbitrage possibilities that may occur between the cash and derivative markets. Such arbitrage opportunities might as well exist within the derivative segment, along with investments in debt securities and money market instruments.
The fund’s portfolio is fully hedged, with offsetting positions taken on many markets at the same time. The arbitrage fund uses a market-neutral approach and does not take any specific equity risks. The scheme may invest in short-term debt or money market securities if there aren’t enough arbitrage opportunities.
Scheme Details of Nippon India Arbitrage Fund (Growth)
Nippon India Mutual Fund launched Nippon India Arbitrage Fund (Growth) on 14th October 2010. The fund has been in existence for the past 12 years.
NAV and Returns – As of 14th April 2022, the Net Asset Value (NAV) of the scheme is Rs 21.67. The risk-o-meter of Nippon India Arbitrage Fund (Growth) is low risk. While investing an investor must understand that the principal amount invested will be at a low to moderate risk. Since its inception during these 12 years, the scheme has provided its investors with a return of 7%.
Investment Plans – Direct Plan IDCW Plan Payout, Direct Plan IDCW Plan Reinvestment, Direct Growth Plan Growth Option Growth, Direct Monthly IDCW Plan Payout, Direct Monthly IDCW Plan Reinvestment, IDCW Plan Payout, IDCW Plan Reinvestment, Growth Plan Growth, Monthly IDCW Plan Payout, Monthly IDCW Plan Reinvestment
Minimum Investment – The minimum amount for a lump sum investment is Rs 5,000. However, the minimum investment amount for SIP is Rs 1,000.
Expense Ratio – An expense ratio of 1.02% is charged on the units of the mutual funds.
Exit Load – An exit load is applicable at a rate of 0.25% if redeemed or switched out on or before completion of 1 month from the date of allotment of units. No exit load if redeemed or switched out after completion of 1 month from the date of allotment of units.
Fund Manager – Mr. Anand Gupta, Anju Chhajer, and Ms. Kinjal Desai are the fund managers of the scheme. Mr. Anand Gupta is the Vice President of Equity & Exchange Traded Funds (ETFs). He has been managing the scheme since September 2018. Ms. Kinjal Desai is the Fund Manager for Overseas Investment. She has been managing the scheme since May 2018. Anju Chhajer is the Senior Fund Manager for Debt. She has been managing the scheme since February 2020.
Other details – There is no lock-in period for the scheme. So, an investor can redeem an investment anytime without any redemption limit. As of 14th April 2022, the AUM of Nippon India Arbitrage Fund (Growth) is Rs 10,378.090 cr. The fund benchmarks to NIFTY 50 Arbitrage TR INR. The suitable investment horizon for an investor is 3 months to 1 year.
Growth Review
Scripbox recommends Nippon India Arbitrage Fund (Growth) for investment within the arbitrage mutual fund category. Arbitrage funds benefit from the price differences in the cash and derivative market. They also invest in high quality liquid debt instruments to generate income. Launched in 2010, the fund has the third largest average assets under management at Rs. 8,864 crores. The fund has consistently remained in the top quartile during multiple periods and has the highest 3 year rolling returns of 5.5% over the last five years. It has also never generated a 3-month negative return in the last five years, which is a good sign.
- With a past performance of 12 years, the fund has an extended history for analysis and the track record is excellent.
- With an AUM or relative size of Rs 10,378.090 cr, the scheme is the leader within the category of the liquid mutual fund.
Fund Performance
Annualised Returns
| Period | Returns |
| 10 Years | 6.70% |
| 5 Years | 5.20% |
| 3 Years | 4.60% |
| 1 Year | 3.80% |
Performance Ratio
| Standard Deviation | 1.1% |
| Portfolio Beta | 1.38 |
| Sharpe Ratio | 0.86 |
| Treynor’s Ratio | 0.01 |
Asset Allocation
Top Stock Holding
| Stock Holding | Percentage of Holding |
| Cash Offset For Derivatives | 69.30% |
| Nippon India Money Market Dir Gr | 7.70% |
| Future On Reliance Industries Ltd | 4.80% |
| Reliance Industries Ltd | 4.70% |
| Nippon India Liquid Dir Gr | 4.30% |
| Adani Ports & Special Economic Zone Ltd | 3.70% |
| Future On Adani Ports & Special Economic Zone Ltd | 3.70% |
| Nippon India Low Duration Dir Gr | 3.50% |
| 8.35% Govt Stock 2022 | 3.10% |
Asset Allocation as per Sector
| Sector | Percentage of Holding |
| Financial Services | 13.80% |
| Basic Materials | 12.90% |
| Energy | 8.50% |
| Industrials | 7.40% |
| Technology | 6.90% |
| Healthcare | 5.30% |
| Consumer Defensive | 5% |
| Consumer Cyclical | 4% |
| Communication Services | 3% |
| Utilities | 1.20% |
| Real Estate | 0.90% |
Frequently Asked Questions
An arbitrage fund is an open-ended scheme. The goal of arbitrage funds is to profit from the price differences between securities in two different marketplaces. The securities are purchased on the cash market at a lower price and sold on the futures market at a higher price. The profit gained by arbitrage is the difference. As a result, arbitrage funds thrive in a volatile market. The Nippon India Arbitrage Fund (Growth) is suitable for an investor who wants to park his or her idle funds. This scheme has the potential to deliver higher returns in comparison to interest on savings bank accounts. Moreover, the scheme is suitable for an investment horizon ranging from 3 months to 1 year depending on the need for liquidity and objective.
Nippon India Arbitrage Fund (Growth) charges an expense ratio of 1.02% on the units of the scheme.
Yes, Nippon India Arbitrage Fund (Growth) charges exit load. An exit load is applicable at a rate of 0.25% if redeemed or switched out on or before completion of 1 month from the date of allotment of units. No exit load if redeemed or switched out after completion of 1 month from the date of allotment of units.
On sale or redemption of the units of Nippon India Arbitrage Fund (Growth), a capital gain will arise. Capital gain is taxable on the basis of the holding period from the date of allotment till the date of redemption. If an investor sells the units after 12 months then long term capital will arise. The LTCG is taxable at a rate of 10%. Moreover, long term capital gains of up to Rs 1 lakh are tax exempt. If an investor sells the units before 12 months then short term capital will arise. The STCG is taxable at a rate of 10%
As of 14th April 2022, the net asset value NAV of Nippon India Arbitrage Fund (Growth) is Rs 21.67.
Yes, Nippon India Arbitrage Fund (Growth) provides a direct plan. The plans are Direct Plan IDCW Plan Payout, Direct Plan IDCW Plan Reinvestment, Direct Growth Plan Growth Option Growth, Direct Monthly IDCW Plan Payout, Direct Monthly IDCW Plan Reinvestment, IDCW Plan Payout, IDCW Plan Reinvestment, Growth Plan Growth, Monthly IDCW Plan Payout, Monthly IDCW Plan Reinvestment