Tata Mutual Fund launches Arbitrage Fund



Tata Mutual Fund announces the launch of 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 will open on December 10, 2018 and close on December 17, 2018 and the minimum application amount is Rs. 5,000/-. The fund will be managed by Sailesh Jain, Fund Manager, Tata Mutual Fund.

Rahul Singh, CIO-Equities, Tata Asset Management, said that, “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.”

Speaking on the launch, Prathit Bhobe, CEO & MD, Tata Asset Management said that, “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 endeavor to continue offering an equitable portfolio of innovative products and investment options”.

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 maximum of 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.

Fund Details:


NFODates: Opens on 10 December 2018. Closes on 17 December, 2018

Scheme Re-opens for continuous sale and repurchase on : December 21, 2018

Investment Objective: The investment objective of the Scheme is to seek to generate reasonable returns by investing predominantly in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.

Type of Scheme: An open-ended scheme investing in arbitrage opportunities.

Fund Manager: Sailesh Jain

Benchmark: Nifty 50 Arbitrage Index

Min. Investment Amount: Rs. 5,000/-and in multiple of Re.1/-thereafter

Load Structure: Entry Load: Nil; Exit Load: 0.25 % of the applicable NAV, if redeemed/switched out/withdrawn on or before expiry of 30 Days from the date of allotment.

Plans & Options: Regular & Direct Plans with Growth & Monthly Dividend Option
(monthly dividend is not assured and is subject to the availability of
the distributable surplus)

About Tata Asset Management
Established in 1994, Tata Asset Management Ltd is the investment manager for Tata Mutual Fund.
It is among the oldest and most trusted fund houses in India with an average monthly asset under management (AAUM) of Rs. 49,623 crore (as on November 30, 2018) and an investor base of over 18,00,000.