Tata Mutual Fund launches Tata Arbitrage Fund

Tata Mutual Fund launched Tata Arbitrage Fund, an open-ended equity scheme. The scheme seeks to generate reasonable returns income by investing predominantly in arbitrage opportunities in the cash and the derivative segments of the equity markets as well and by investing the balance in debt and money market instruments.

The New Fund Offer (NFO) will open on December 10 and close on December 17. The fund will receive a minimum application amount of Rs 5,000.

The fund will be managed by Sailesh Jain, fund manager, Tata Mutual Fund.


"The scheme aims to target investors with moderately low risk appetite and insulates investors from equity market risk due to its fully hedged equity exposure. Investors can also benefit from a highly experienced dealing team at the helm apart from the expertise in managing arbitrage positions. All in all, Tata Arbitrage fund is designed to capture the "INTEREST" element in the equity markets,” says Rahul Singh, CIO-Equities, Tata Asset Management.

"We are committed to providing a range of investment structures to serve the needs of our investors. With continued market volatility, it is logical and timely for us to launch the fund at this point. This latest offering is part of our endeavour to continue offering an equitable portfolio of innovative products and investment options,” says Prathit Bhobe, CEO & MD, Tata AMC.

The scheme would benchmark against Nifty 50 Arbitrage Index since it will invest mostly in riskfree arbitrage strategies.

On the asset allocation front, when arbitrage opportunities are available and accessible, the scheme will allocate a minimum of 65 per cent and 100 per cent towards equity & equity related instruments including equity derivatives like index futures, stock futures, stock options, index options etc. and a maximum of 35 per cent in debt and money market instruments.

The scheme will charge an exit load of 0.25 per cent of the applicable NAV if redeemed/ switched out/ withdrawn on or before expiry of 30 days from the date of allotment.

Tata Mutual Fund is managing asset under management (AAUM) of Rs 49,623 crore (as on November 30, 2018) and an investor base of over 18,00,000.