ITI Mutual Fund launches arbitrage fund

ITI Mutual Fund on Monday launched an arbitrage fund called ITI Arbitrage Fund. The new fund offer (NFO) of the scheme will open for subscription on August 20 and close on September 3.

According to a release from the fund house, ITI Arbitrage Fund will invest a minimum of 65 per cent in arbitrage opportunities available in the equity markets and the balance in debt securities with a maturity of less than 91 days.

The fund will be managed by George Heber Joseph and Milan Mody. The performance of the scheme will be benchmarked against Nifty 50 Arbitrage Index.


“ITI Arbitrage Fund aims to generate returns by investing in arbitrage opportunities available in the market and providing relatively risk-free returns without any directional equity risk. The fund plans to take offsetting positions in cash and futures markets without any un-hedged or open exposures. This fund is suitable for investors with a short to medium term investment horizon and are looking for an alternate option to bank fixed deposits or liquid funds,” said George Heber Joseph, CEO & CIO, ITI Mutual Fund.

The scheme will invest in equity and equity-related instruments, including derivatives, a minimum of 65 per cent and maximum of up to 100 per cent. If arbitrage opportunities are limited, the scheme may invest in a maximum of 35 per cent in high quality debt instruments with maturities of up to 91-days, as stated in the Scheme Information Document.

The minimum investment in ITI Arbitrage Fund fund will be Rs 5,000 and in multiples of Rs 1 thereafter.