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With a 27.53% return over 5 years, this arbitrage fund is a good investment

Indiabulls Arbitrage Fund – Direct Planned Growth

As mentioned, this is an arbitrage mutual fund from India Bull Asset Management Company (AMC). It was launched on December 1, 2014. It is an open small fund in its category. The AUM or assets under management of the fund is Rs 14.26 crore. Its NAV as of April 13, 2022 is RS 15.2516. This fund’s expense ratio is 0.42, higher than the category average of 0.35%.

It is a low-risk fund. In addition, CRISIL rated this fund with 2 stars. However, it has relatively underperformed among its peer funds. To start investing in this fund, the minimum lump sum amount is 500 RS. And for SIP it is Rs 1000.

Absolute and annualized returns

Absolute and annualized returns

Flat Investment Returns

Since its inception, it has generated an average annual return of 5.94%.

investment period Absolute returns Annualized Returns
1 year 2.97% 2.97%
2 years 6.03% 2.97%
3 years 12.99% 4.15%
5 years 27.53% 4.98%
Since inception 52.52% 5.94%

SIP returns

SIP period Absolute returns Annualized Returns
1 year 1.52% 2.84%
2 years 3.08% 2.95%
3 years 5.15% 3.29%
5 years 11.14% 4.17%

portfolio

portfolio

The fund invests 67.03 percent of its assets in Indian equities, with 60.66 percent in big cap stocks, 1.62 percent in mid cap stocks and 4.75 percent in small cap stocks.

The fund’s equity component is primarily invested in the financials, materials, healthcare, chemicals and insurance sectors. It has increased its exposure to the financials and materials sectors compared to other funds in this category.

Housing Development Finance Corp. Ltd., UPL Ltd., HDFC Standard Life Insurance Company Ltd., Can Fin Homes Ltd. and Hindustan Unilever Ltd. are the fund’s largest holdings.

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