FincashNippon India Arbitrage Fund Vs Edelweiss Arbitrage Fund
Nippon India Arbitrage Fund (Formerly Reliance Arbitrage Fund)
Nippon India/Reliance Arbitrage Fund Vs Edelweiss Arbitrage Fund
Nippon India Arbitrage Fund Vs Edelweiss Arbitrage Fund
Nippon India Arbitrage Fund (Formerly known as Reliance Arbitrage Fund) VsEdelweissArbitrage Fund both belong to the arbitrage category ofHybrid Fund. Arbitrage funds are a type ofMutual Fundsthat leverage on the price differences of different markets to earn profits. Arbitrage Funds are named after the arbitrage strategy that they use. The returns of these funds are dependent on the volatility of the invested asset on the market. They make use of the market inefficiencies to generate returns for their investors. Though both Nippon India Arbitrage Fund and Edelweiss Arbitrage Fund belong to the same category they differ in some parameters like AUM,NAV, performances, etc. So, to make a better investment decision, lets have a look at both the schemes in a detailed manner.
Important Information: From October 2019,Reliance Mutual Fundhas been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
Nippon India Arbitrage Fund was launched in the year 2010. The fund seeks to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market. As the fund also invests in debt andmoney marketsecurities, it profits from regular income. Some of the top holdings of Reliance Arbitrage Fund as on 30th June 2018 are Cash Offset For Derivatives, HDFC Bank Ltd, Housing Development Finance Corp Ltd, Axis Bank Ltd, ICICI Bank Ltd. etc. The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.
Edelweiss Arbitrage Fund was launched in the year 2014. The investment objective of the scheme is to generate income byInvestingin arbitrage opportunities in the cash and the derivative segments of the equity markets. The fund also seeks advantage of the arbitrage opportunities available within the derivative segment and by investing a portion in debt and money market securities. Some of the top holdings of Edelweiss Arbitrage Fund as on 30th June 2018 are Cash Offset For Derivatives, Clearing Corporation Of India Ltd, Edelweiss Commodities Services Ltd, JSW Steel Ltd Shs Dematerialised,IndiabullsHousing Finance Ltd, etc. Edelweiss Arbitrage Fund is been currently managed by two managers- Dhawal Dalal and Bhavesh Jain.
Though both Nippon India Arbitrage Fund and Edelweiss Arbitrage Fund belong to the arbitrage category of hybrid funds, nevertheless; they differ on account of various parameters. So, let us understand the differences between both the schemes based on these parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.
Current NAV, Fincash Rating, and Scheme Category are some of the comparable elements that form part of the basics section. It is the first section in the comparison of both the schemes. The comparison of current NAV reveals that there is a drastic difference between the NAV of both the schemes. As on 31st Jul, 2018, the NAV of Nippon India Arbitrage Fund was INR 18.1855, while the NAV of Edelweiss Arbitrage Fund was INR 13.189. With respect to theFincash Rating, it can be said that Nippon India Arbitrage Fund is rated as4-Starand Edelweiss Arbitrage Fund is rated as5-Star. The summary comparison of the basics section is as shown in the table given below.
This section compares the Compounded Annual Growth Rate orCAGRreturns of both the schemes at various intervals. Some of the time intervals include 3 Month Return, 6 Month Return, 1 Year Return, and Return since Inception. The comparison of CAGR returns shows that both Nippon India/ Reliance Arbitrage Fund and Edelweiss Arbitrage Fund has performed closely in many instance. The table given below shows the summary of performance section.
The comparison of absolute returns generated by both the schemes for a particular year is compared in the yearly performance section. It is the third section in the comparison of both the schemes.
It is the last section on the comparison of both the schemes that compares the elements like AUM, minimumSIPand lump sum investment and others. The comparison of AUM reveals that there is a significant difference in the AUM of both the schemes. As on 30th June 2018, the AUM of Nippon India/Reliance Arbitrage Fund was INR 8,123 crores, while the AUM of Edelweiss Arbitrage Fund was INR 4,807 crores. Similarly, the minimumSIP investmentfor both the schemes is also different. The SIP amount for Nippon Mutual Funds scheme is INR 100 and forHDFC Mutual Funds scheme is INR 500. However, the minimum lumpsum amount for both the schemes is the same, that is, INR 5,000. The table given below shows the comparison of other details section.
Equity, Since 31 Dec 17RELIANCE6%₹604 Cr4,124,000
Equity, Since 30 Apr 18RELIANCE7%₹285 Cr1,943,000
Equity, Since 31 Mar 195322153%₹132 Cr1,795,200
Click to Invest in Nippon India Arbitrage Fund
Thus, based on the above pointers, it can be said that both the schemes differ on account of various parameters. Consequently, investors should be very cautious before investing in any of the Mutual Fund schemes. They should understand the modalities of the scheme completely. Also, if required, they can consult afinancial advisorfor an opinion. This will help the individuals to attain their goals on time in a hassle-free manner.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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AMFI Registration No.112358CIN:U74999MH2016PTC282153
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