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Introducing
Motilal Oswal Arbitrage Fund
Low Risk: Market Neutral
Arbitrage Positions
Alternate to
Liquid / Debt Funds
Equity
Taxation
Motilal Oswal Arbitrage Fund
Source: MOAMC Internal. please click on https://www.motilaloswalmf.com/download/sid. In case of a large redemption, spot-futures transactions may be reversed before futures Show more...
Why you should invest in Arbitrage Fund?
An Edge over Debt
Tax Efficiency
Trend In Arbitrage Spread
Driving Factors
On an average ^, Arbitrage Funds have delivered an Annualised Alpha of 1.17% over Liquid Funds and 0.98% over Ultra Short Term Funds (Net of Tax)
Avg. of 9 months from Jan 24 - Nov 24, Check Fund PPT for full data disclosure. ^ Data of 1M Rolling Returns during CY2024 till 31st Oct (Average of 117 Days of 1M Returns) – Average of All the Funds (Direct Plan) in the Industry in the respective categories Source: MOAMC Internal. The above graph is used to explain the concept and is for illustration purpose Show more...
Understanding cash and Futures arbitrage
Source: MOAMC Internal. The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investmentShow more...
Fund Name
Plans
Benchmark
Minimum Application Amount
Minimum Redemption Amount
Investment Objective
The primary investment objective of the scheme is to generate long term growth of capital by predominantly investing in arbitrage opportunities present between the cash and derivate markets, as well as within the derivative segment, complemented by investments in debt securities and money market instruments.
However, there can be no assurance that the investment objective of the scheme will be realized.
Type
Entry load
Exit load
0.25% - If redeemed within 15 days from the day of allotment. Nil - If redeemed after 15 days from the day of allotment. Exit Load will be applicable on switch amongst the Schemes of MOMF. No Load shall be imposed for switching between Options within the Scheme. Further, it is clarified that there will be no exit load charged on a switch-out from Regular to Direct plan within the same scheme
Fund Managers
FAQs
What is Arbitrage?
- Simultaneously buying and selling of equity and derivative products to gain returns from their price differentials.
- or
- Purchase and sell of 2 securities simultaneously to gain exposure from their price differentials
Why Arbitrage?
- Low risk as it takes market neutral arbitrage positions
- High Liquidity: Liquid in nature & exit load applicable up to 15 days.
- Low Volatility: Arbitrage spread is less volatile in nature because buying and selling positions are locked in and neutralizes each other.
- Acts as an alternate to Liquid/Debit funds
- Taxation just like equity funds
Are Arbitrage Funds safe?
Investing in Arbitrage funds in considered safe as the capital and return from arbitrage fund is not dependent on market direction.
The Scheme being an index scheme follows a passive investment technique and shall only invest in Securities comprising one selected index irrespective of its market conditions.