Low Risk; Medium Return- Arbitrage Mutual Fund..!

 

Low Risk; Medium Return-  Arbitrage Mutual Fund..! 

 

New Fund Offer (NFO) of quant Arbitrage Fund which opens on March 18, 2025 and will remain open till April 1, 2025.

 

This fund offers an attractive opportunity for investors looking for a risk-free and tax efficient alternative (equity taxation) to park their short- term and medium-term funds. It is particularly attractive to those who want to limit their exposure to traditional equity and bond market risks, while still achieving moderate and consistent returns.

 

The scheme aims to:

 

• Actively identify arbitrage opportunities and execute simultaneous deals in both spot and futures markets, aiming for market neutrality.

 

• Deploy several arbitrage strategies to aim for risk free returns where the buy and sell positions are totally (100%) hedged

 

Predictive Analytics will be used to:

 

• Identify arbitrage opportunities through Real-time Analytics by observing price and volume data

 

• Benefit from arbitrage opportunities coming from differences in a stock’s futures and cash markets

 

• Identify and optimize any ‘Special Situation’ arbitrage opportunity

 

• Forecast company dividends which may potentially enhance the returns

 

Through VLRT framework, the fund house will carefully analyze the pricing disparities between markets, ensuring that the fund house target opportunities with high probability outcomes while managing risk through stringent risk controls.

 

In times of market volatility, quant Arbitrage Fund may potentially perform better than other asset classes .

 

As the scheme returns are less correlated with market movements, they can serve as a buffer during market downturns.

 

The New Fund Offer (NFO) details are as follows:

·         Face Value per Unit: ₹10

·         Minimum Investment: ₹5,000 (multiples of ₹1 thereafter)

·         Exit Load: 0.25% if redeemed within one month, no exit load thereafter

The fund will be managed by Sanjeev Sharma, Sameer Kate, and Yug Tibrewal. They have experience in equity, derivatives, and risk mitigation strategies.

Asset Allocation

·         65-100%: Equity and equity-related instruments (including derivatives)

·         0-35%: Debt and money market instruments

·         Up to 10%: Units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

As per the filing, the fund will identify arbitrage opportunities, execute trades simultaneously in the cash and derivatives markets, and, when necessary, shift to debt and money market instruments.

 

For more details and Investments

Mr. R. Venkatesh, Founder,

GuruRam Financial Services Pvt. Ltd.
New No. 14, Old No. 37C, First Floor
Nathamuni Street, T Nagar, Chennai -600017

Tel. +91-9677267889, 9677025125
Email: gururamforyou@gmail.com

https://www.gururamfinancialservices.com/index.php

Smart Investment Solutions is one of the leading comprehensive financial investment solutions advisory with specialization and expertise in the financial sector. GuruRam Financial Services Pvt. Ltd is AMFI qualified and IRDAI approved distributors.  This company SEBI registered Sub-Broker and BSE Star Mutual Fund registered BSE members as well. It have more than 18 year's experience in Financial Planning, Retirement Planning, Tax Planning, Mutual Funds, Life Insurance, General Insurance, Health Insurance, Accidental Insurance, Loans, and Demat Accounts etc.

GuruRam Financial Services Pvt. Ltd. have been serving and helping our Retail, HNI and NRI customers and investors in achieving their financial goals which leads to their financial freedom. We firmly believe that "Once Journey to financial freedom is through Financial Literacy only".

GuruRam Financial Services Pvt. Ltd is associated with SBI, UTI MF, HDFC MF, ICICI Pru. MF, Aditya Birla Sunlife MF, Kotak Mahindra MF, DSP Black Rock MF, Franklin Templeton MF, Axis MF, Nippan India MF, L&T MF, Motilal Oswal MF, Tata Mutual Fund Houses, SEBI Sub-Broker with Nirmal Bang Securities, Star Health Insurance, Religare Health Insurance, National & Reliance General Insurance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.