How have the arbitrage funds performed over different time frames in the Indian mutual fund industry?
Answer
Answer
The table below captures the performance of arbitrage funds. Remember, that arbitrage funds are the combination of equity and stock futures in a long / short combination. They have the asset mix of equities but are debt instruments in terms of performance and benchmarking. They are the traditionally used by corporates, HNIs and large institutions to park temporary surpluses in selected arbitrage strategies so as to be conservative and yet generate the alpha. They are suited more to aggressive fund parking.
Scheme Name
Return 1 Year (%) Regular
Return 1 Year (%) Direct
Return 1 Year (%) Benchmark
Return 3 Year (%) Regular
Return 3 Year (%) Direct
Return 3 Year (%) Benchmark
Return Since Launch Regular
Return Since Launch Direct
Return Since Launch Benchmark
Aditya Birla Sun Life Arbitrage Fund
6.13
6.75
6.68
5.97
6.62
5.18
6.77
7.66
Axis Arbitrage Fund
5.83
6.59
6.68
5.81
6.63
5.18
6.40
7.26
6.09
BNP Paribas Arbitrage Fund
6.13
6.69
6.68
6.28
6.90
5.17
BOI AXA Arbitrage Fund
5.24
5.99
6.68
5.39
6.07
6.11
DSP Arbitrage Fund
6.38
7.00
6.68
6.16
6.82
5.63
Edelweiss Arbitrage Fund
6.10
6.85
6.68
6.10
6.81
5.18
6.77
7.39
6.15
Essel Arbitrage Fund
4.23
4.81
6.89
4.58
5.22
7.11
HDFC Arbitrage
5.93
6.47
6.68
5.71
6.25
5.18
7.05
6.90
ICICI Prudential Equity Arbitrage
5.87
6.49
6.68
5.94
6.59
5.18
7.46
7.80
IDFC Arbitrage
6.09
6.79
6.68
6.03
6.73
5.18
7.07
7.65
Indiabulls Arbitrage Fund
5.88
6.41
6.68
5.84
6.38
5.18
6.54
7.15
6.01
Invesco India Arbitrage
5.87
6.51
6.68
5.84
6.48
5.18
6.99
7.43
JM Arbitrage Fund
5.35
5.77
6.68
5.34
5.76
5.18
7.13
7.27
Kotak Equity Arbitrage
6.04
6.57
6.68
6.11
6.62
5.18
7.38
7.74
L&T Arbitrage Opportunities Fund
5.94
6.50
6.68
5.98
6.59
5.18
6.54
7.17
6.14
Nippon India Arbitrage Fund
6.11
6.81
6.68
6.21
6.89
5.18
7.70
7.82
6.94
PGIM India Arbitrage Fund
5.88
6.38
6.68
5.85
6.43
5.18
6.42
7.01
6.08
Principal Arbitrage Fund
3.71
4.15
6.68
2.62
3.21
5.18
3.27
3.88
5.46
SBI Arbitrage Opportunities
5.98
6.47
6.68
5.91
6.46
5.18
7.25
7.53
Tata Arbitrage Fund
6.34
7.12
6.68
6.31
7.09
6.65
UTI Arbitrage Fund
6.14
6.65
6.68
6.05
6.57
5.18
7.32
7.30
As can be seen from above table, the returns mirror debt returns but end up getting the tax benefits of equity funds.