FincashNippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Nippon India Arbitrage Fund (Formerly Reliance Arbitrage Fund)

Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund

Nippon India Arbitrage Fund (Formerly known as Reliance Arbitrage Fund)and ICICI Prudential Equity Arbitrage 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 Reliance/Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund belong to the same category there 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 Advantage 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/Nippon 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.

ICICI Prudential Equity Arbitrage Fund was launched in the year 2006. The aim of the fund is to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio.

Some of the top holdings of the fund as on 30th June 2018 are Cash Offset For Derivatives, Housing Development Finance Corp Ltd, Sun Pharmaceuticals Industries Ltd, Housing Development Finance Corporation Limited, etc.

Both Nippon India Arbitrage Fund Vs ICICI Prudential Equity Arbitrage Fund belong to the same category of arbitrage fund. However, there are numerous differences between them. So, let us analyze the differences between both the schemes on the basis of four sections given below.

Being the first section, it compares parameters such ascurrent NAV, AUM, scheme category, Fincash Rating, and many more. With respect the sub category, both the scheme belong toArbitrage Category

Based onFincash Rating, it can be said that both the funds are rated as4-Star.

The summary of the basics section is tabulated as follows.

Compounded Annual Growth Rate orCAGRreturns is the comparable parameter forming part of the basics section. The CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. The comparison of performance section shows that Reliance Arbitrage Fund has performed better than ICICI Prudential Equity Arbitrage Fund. The table given below summarizes the comparison of the performance section.

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The comparison of the absolute returns for a particular year earned by both the schemes is done in the yearly performance section. The comparison of absolute returns states that both the funds have n performed closely. The table given below shows the summary comparison of the absolute returns section.

Being the last section in the comparison, it includes parameters such asminimum SIP investmentandminimum lumpsum investment. The minimum lump sum investment for both the schemes is same, that is, INR 5,000. However, the minimumSIP investmentis different for both the schemes. TheSIPamount in case of ICICI Prudential Equity Arbitrage Fund is INR 1,000 and of Reliance Arbitrage Fund is INR 100.

ICICI Prudential Equity Arbitrage Fund is jointly managed by Kayzad Eghlim and Manish Banthia.

The fund is currently managed jointly by Payal Kaipunjal and Kinjal Desai.

The summary comparison of the other details section is tabulated as follows.

Equity, Since 31 Dec 17RELIANCE5%₹568 Cr4,020,500

Equity, Since 30 Apr 15SUNPHARMA4%₹433 Cr9,977,500

Equity, Since 31 Oct 16HDFC9%₹1,206 Cr4,997,000

Equity, Since 30 Apr 19HDFCBANK4%₹514 Cr4,187,500

Equity, Since 30 Sep 185322153%₹405 Cr5,552,400

Click to Invest in ICICI Prudential Equity Arbitrage Fund

Click to Invest in Nippon India Arbitrage Fund

As a result, from the above-mentioned pointers, it can be said that both the schemes differ on account of numerous parameters. Therefore, individuals should pay extra caution beforeInvestingin any of the schemes. They should check whether the scheme matches their investment objective or not and understand its modalities completely. This will help them to achieve their goals on time along with ensuring their investment is safe.

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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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

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