Parag Parikh Mutual Fund files draft for arbitrage fund

Parag Parikh Mutual Fund has filed a draft for an arbitrage fund. Parag Parikh Arbitrage Fund will be an open-ended scheme investing in arbitrage opportunities.

The scheme will be benchmarked against Nifty 50 Arbitrage Total Return Index (TRI). The scheme will be managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, and Rukun Tarachandani.

According to the scheme information document, the investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments.


The minimum application amount will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum installment amount for monthly SIP will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum installment amount for quarterly SIP will be Rs 3,000 and in multiples of Re 1 thereafter.The scheme's riskometer shows that the scheme will fall in the 'low' category.

The scheme will have a regular and a direct plan only with growth option. The scheme will allocate its assets of around 65-100% in equity and equity instruments including derivatives, 0-35% in debt securities & money market instruments including margin money deployed in derivatives transactions.