BOI AXA Arbitrage Fund | Invest Online

Data As on 30^th June 2019

BOI AXAARBITRAGE FUND

Date of re-open on 20th June 2018

Fund Type : An open ended scheme investing in arbitrage opportunities

Entry Load : Nil

Date of Allotment : June 18, 2025

Features : Liquity SIP Shield SIP SWP STP
Benchmark : NIFTY 50 Arbitrage Index
Exit Load :
- For Redemption/switch out - of up to 10% of the initial units allotted -within 30 days from the date of allotment : Nil
- Any Redemption/Switch out - in excess of the above mentioned limit would be subject to an exit load of 0.50%, if the units are switched out within 30 days from the date of allotment of units
- If the units are redeemed/switched out after 30 days from the date of allotment of units : Nil

Investment Objective

To generate income through arbitrage opportunities between cash and derivative segments of the equity market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be realized.

Fund Manager

Ajay Khandelwal

BE- MITS Gwalior
MBA (Finance)- TAPMI

See detail

Around 10 years of experience,including 7 years in mutual fund industry.

Fund Highlights

An open ended scheme investing in arbitrage opportunities between cash and futures prices of exchange traded equities
Suitable for investors with an investment horizon of 3 to 6 months
Enjoys similar risk-return profile as liquid fund with tax advantage of an equity fund - Opportunity for Superior post tax returns as compared to a Liquid Fund
All positions are completely hedged – No directional exposure to equity markets; hence Arbitrage Funds carry no Market Risk
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Riskometer

This product is suitable for investors who are seeking*:

Income over short to medium term.
Income through arbitrage opportunities between cash and derivative segments of the equity market and arbitrage opportunities within the derivative segment.

*Investor should consult their financial advisor if they are not clear about the suitability of the product.

Top 10 Portfolio Holdings

Portfolio Details	% to Net Assets
DLF Ltd	6.6%
Reliance Industries Ltd	5.3%
Vedanta Ltd	4.4%
ITC Ltd	3.8%
Hindustan Petroleum Corporation Ltd	3.5%
Raymond Ltd	3.4%
Aurobindo Pharma Ltd	3.2%
HCL Technologies Ltd	3.0%
Tata Elxsi Ltd	2.4%
Adani Power Ltd	2.4%

Who should invest?

Risk-averse individuals
Those who want to leverage market inefficiencies
Retail / HNIs / Cash Rich Corporates looking for short term deployment of surplus funds
Those looking for investment opportunities that provide risk-return profile like liquid fund along with tax advantages of an equity fund
Investors seeking higher post tax returns than Liquid and Ultra Short Term Funds

Why should you invest?

Investing in arbitrage between cash and futures market
Timely unwind existing trades & enter new trades to enhance portfolio returns
Superior post tax returns opportunity
Complete hedging with no market risk
No credit risk

Scheme
Benchmark

Fund Performance

Total Expense Ratio

The above table shows the clear post tax benefits of an Arbitrage Fund:

While on a pre-tax basis (Gross Returns), Arbitrage Funds may be lower than Liquid and Ultra Short Term Income Funds, the Post-Tax Returns of Arbitrage Funds are higher than both Liquid and Ultra Short Term Income Funds over 1, 3 and 5 year basis.

The above table is for illustration purpose only. Past performance may or may not be sustained in future. *Source ACE MF. Regular Plan – Growth Option Median returns of category considered ^Assumed that entire gain is earned as Dividend Income. Dividend Distribution Tax of 11.648% considered for Arbitrage Funds, 29.12% considered for Individual investors in Liquid & Debt Funds and 34.944% considered for Corporate investors in Liquid & Debt Funds. The Dividend Distribution Tax has been calculated on the basis of Effective Tax rate