Nippon India Arbitrage Fund(G)
View the direct plan of this scheme
Rs 25.2055 0.0078(0.031 %) NAV as on 10 Sep 2024
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 10 Sep 2024)
| 6 month returns | 1 year returns | 3 year returns | 5 year returns | Returns since inception | |
|---|---|---|---|---|---|
| Scheme | 3.71 % | 7.53 % | 5.88 % | 5.24 % | 6.87 % |
| Nifty 50 Arbitrage | 3.40 % | 7.49 % | 6.09 % | 5.06 % | N/A |
Portfolio
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.
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.
