Reliance Arbitrage Fund (G)

4
Arbitrage NAV 19.4514 0 16 August, 2019
  • 6.78%
  • 10Y 7M
Reliance Arbitrage Fund (G) was previously known as

Reliance Arbitrage Advantage Fund (G)

It is an open-ended scheme of Reliance Mutual Fund that was launched on 14th October, 2010 with an aim to provide capital appreciation to the Indian investors. For achieving the investment objective, the fund grabs the arbitrage opportunities pertaining in the finance market. The difference generated due to the mispricing of the assets in the cash (spot) and future market becomes the profit for the scheme. This arbitrage fund of Reliance Mutual Fund is one of the best investment plans for the investors having moderate risk appetite.

Fund Details

Category Arbitrage
Fund Type Open Ended
Investment Plan Growth
Launch Date 14 October, 2010
Benchmark CRISIL Liquid
Asset Size(Cr) 8759.45 (As on June 30, 2019)
Min Investment ₹ 5000
Min SIP Investment ₹ 100
Min Addl Investment ₹ 1000
Exit Load 0.25 % For 30 Days
Expense Ratio 1.04% (As on June 30, 2019)
Fund Manager Anand Devendra Gupta

Investment Returns (As on 16 Aug, 2019)

  • 3 Month 1.74%
  • 6 Month 3.5%
  • 1 Year 6.8%
  • 3 Year 6.38%
  • 5 Year 6.78%
Graph
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Disclaimer: Above returns are calculated on the basis of historical NAV movement for the selected period. However, historical performance does not guarantee future returns. Investors must take investment decisions based on his/her own requirements.

Asset Allocation

  • Equity: 65.79%
  • Debt: 10.11%
  • Cash: 24.11%

Top Sector Allocation

  • Sector Allocation (%)
  • HDFCBankLimited14.51
  • CBLO4.1075
  • AxisBankLtd3.1772
  • VedantaLtd2.6892
  • IndiabullsHousingFinanceLtd2.4784
  • AdityaBirlaHousingFinanceLimited2.182
  • AurobindoPharmaLtd2.1587
  • NetCurrentAssets2.0769
  • BhartiAirtelLtd1.9983
  • SunPharmaceuticalsIndustriesLtd1.9653

Peer Comparison

Fund Name 1 Yr Rtn. 3 Yr Rtn. 5 Yr Rtn.
Reliance Arbitrage Fund (G) 6.8% 6.38% 6.78%

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Reliance Arbitrage Fund: Best Scheme for Grabbing Market Opportunities

Reliance Arbitrage Fund is one of the top recommended schemes of Reliance Mutual Fund that can help an investor to generate risk-free returns. As on 31st March, 2019, the AUM of the scheme is Rs. 8,185 Crore which is highest among all the other arbitrage funds. Moreover, the exit load of the scheme is 0.25% if the redemption is made within 30 days. Therefore, the scheme also aims to provide some sort of liquidity to the investors and can be considered as an alternative to liquid and savings account. This arbitrage fund of Reliance Mutual Fund also accepts the investors’ participation through SIP mode of investment. The minimum investment required to start the SIP in this scheme is Rs. 500 which is quite affordable.

 

What is the Investment Philosophy of Reliance Arbitrage Fund?

The mutual fund aims to utilize the profit generated due to the cash and future market or accumulated due to the mispricing of an asset at different Stock Exchanges (NSE- National Stock Exchange, BSE- Bombay Stock Exchange, etc.).

The investment philosophy is strong enough to provide good profits during market volatility. Lets understand it with the help of an example-

Suppose the stock of a company is available at Rs. 100 in the spot (cash) market. The fund manager, Mr. Anand Devendra Gupta will buy the share in the cash market and arrange a future contract for selling the share at Rs. 150 (or above). In this way, during market uptrend, this arbitrage funds makes profits.

Now consider the scenario when the fund manager analyzes that the market will show downtrend in future. In such scenario, he will sell the share at Rs. 150 and at the time of expiry date he will buy the share at the lower prices and generate a profit.

In this the way, the investment style of Reliance Arbitrage Fund aims to achieve the most out of the market opportunities.

 

Previous Track Record of Reliance Arbitrage Fund

The past performance of the scheme is excellent with good annualized returns. The 1, 3, 5, 7-year annualized returns of the scheme is 6.47%, 6.34%, 6.84%, and 7.61%, respectively. That’s not all, the fund has managed to secure rank 1 among all the peer competitors on the basis of annualized returns. Seeing the past performance, there is no second thought in saying that it is the one of the best arbitrage funds in India.

Furthermore, the scheme has provided consistent returns irrespective of the investment horizon. Thus, no matter if you want to achieve your long term or short term goal, you should consider including this arbitrage fund of Reliance Mutual Fund in your portfolio.

 

Who Should Invest in Reliance Arbitrage Fund?

Do you want to grab moderate returns with no risk? Well, arbitrage fund can help you in achieving the same. Also, investors who don’t want to lock their money for a longer period of time can also park their cash in this mutual fund. According to the financial experts, it is also a good choice for providing diversification to the portfolio.

 

3 Things to Keep in Mind Before Investing in Reliance Arbitrage Fund

  1. Investment Cost: Before investing in the mutual funds always analyze the cost of investment attached. The expense ratio, exit loads, turnover ratio, transactions costs, etc., are some of the cost charged by the arbitrage funds. Thus, know the cost of investment beforehand and then make your judgement. For detailed information, an investor should always read the scheme related documents carefully.
  2. Investment Tenure: Every mutual fund charges expense ratio, and high expense ratio can minimize the overall profit. Thus, before parking your cash in Reliance Arbitrage Fund, decide your investment horizon. However, according to the financial experts, an investor should maintain a long term investment prospective through SIP mode of investment.
  3. Taxes: Just like other mutual funds, arbitrage funds are also taxed. The mutual funds are taxed similar to the equities. On the gains generated within 1 year, STCG tax is levied which is 15%. Moreover, for the gains generated on more than 3 years, the LTCG tax imposed is 10%. However, the long term capital gain of up to Rs. 1 Lakh is exempted from the tax.

Moreover, you can also wish to use the SIP Calculator or the Tax Calculator available on the website for a safe investment journey.

Reading so far, you must have acquired all the important details about the Reliance Arbitrage Fund. Thus, if you also wish to grab good returns through arbitrage opportunities in the mutual fund market, then you should also invest your hard earned money in this mutual fund.

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