Investing primarily in equity and equity-related instruments to generate income. The objective of the scheme is to take advantage of existing stock/index price differential/mispricing across different market segments (Cash & Futures).
Arbitrage funds can also benefit from trading stocks in different exchanges. For example, they can buy a stock on the New York Stock Exchange at $ 57 and then sell it immediately on the London Stock Exchange at $ 57.15.
This fund will regularly declare and pay dividends to you, but if there are profits to do so.
- Hybrid – Arbitrage Fund
- S&P BSE SENSEX – TRI
- Nifty 50 Arbitrage Index
- 1 month- 0.48%
- Three months-1.41%
- Six months- 2.83%
- 1 Year- 6.38%
- 3 Years- 6.01%
- 5 Years- 6.27%
AUM– 5769.44 Cr- Aditya Birla Sun Life Arbitrage Fund – Growth is 77% higher than other schemes of AUM category
Exit load – If the units are redeemed within the year, then the exit load will be taken 0.25%, and after one-year exit load will NIL.
Expense Ratio– 0.85%- Aditya Birla Sun Life Arbitrage Fund-Growth Expense Ratio is 57% lower than other category schemes.
Turnover Ratio– 1112.00%- Aditya Birla Sun Life Arbitrage Fund-Growth Turnover Ratio is 12% higher than other schemes in this category
Aditya Birla Sun Life Arbitrage Fund Dividend Payout is a diversified hybrid fund, which gives an annual return of 5.93 percent over 5-year tenure. Aditya Birla manages the Sun Life AMC Limited project. The fund managers are named Lovelish Solanki. An open-end investment scheme with an investment objective to increase revenue primarily by investing in investment and equity-related instruments.
The objective of the scheme is to take advantage of existing stocks/index price differential/misprinting across various market segments (Cash & Futures). The fund is paying 0.94000%. For this, the minimum SIP number is 1000. The minimum amount to be paid is 1000 if you want to invest a lump sum.
The scheme is ideal for investors who are looking for –
- Short-term income.
- Derivatives and equity-related securities such as investments (cash and futures) to take advantage of stock/index price differentials in different segments.
An arbitrage fund is a type of mutual fund that appeals to investors who want to take advantage of volatile markets without taking too much risk. It is essential to understand how they work before investing in one, and whether they make sense for your portfolio.
Drawbacks of Aditya Birla sun life arbitrage fund
One of the primary disadvantages of arbitration funds is their average reliability. During stable markets, arbitrage funds are not very profitable. If there are not enough profitable intermediary trades, the fund will effectively, although in essence, become a bond fund.
The high number of trades that successful arbitrage funds need means that their investment ratios can be quite high. Arbitrage funds can be highly attractive investments, especially in periods of increased volatility.