What is Arbitrage?

The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms, to take advantage of differing prices for the same asset. This is considered risk-free profit for the investor/trader.

PAIR OF GLOVES IS PRICED AT RS. 10 IN MARKET A

Investor

PAIR OF GLOVES IS PRICED AT RS. 15 IN MARKET B

How Arbitrage Fund works?

This trade is protected against any market movement as the long position is completely hedged with the Short position

Get the power of 3 with Tata Arbitrage Fund

Tata Arbitrage Fund aims to give your portfolio the power of 3!

Aim to earn returns at relatively lower risk

Get a Shield for your portfolio that can act as a hedge against volatility

Benefit from tax efficiency by availing tax treatment alike equity

Who Should Invest?

Suitable for Investors:

  • With an investment horizon of 6 months to 1 year
  • Looking for tax efficient and moderately low risk investments

Scheme Details

Scheme Name TATA ARBITRAGE FUND
Type of Scheme An open ended scheme investing in arbitrage opportunities
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.
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Exit Load: 0.25 % of the applicable NAV, if redeemed/switched out/withdrawn on or before expiry of 30 Days from the date of allotment.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).

RISK DISCLOSURES:

  • No assurance can be given that fund manager will be able to locate investment opportunities or to correctly exploit price discrepancies in the capital markets.
  • Lowering of spreads between the cash market and future and options market may lead to lower returns.
  • Other risks include risk of mispricing or improper valuation and the inability of the derivative to correlate perfectly with underlying assets, rates and indices, illiquidity risk whereby the Scheme may not be able to sell or purchase derivative/equity quickly enough at a fair price.

This product is suitable for investors who are seeking*:

  • Income over a short term investment horizon
  • Investments predominantly in arbitrage opportunities in the cash and derivative segments of the equity markets and by investing the balance in debt and money market instruments.

*Investors should their financial advisors if in doubt about whether the product is suitable for them.

Corporate Office Address:

Tata Asset Management Limited, 19th floor, Parinee Crescenzo, ‘G’ Block, Bandra Kurla Complex, Opposite MCA Club, Bandra (E), Mumbai – 400051

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