REITERATION OF OUR RECOMMENDATION OF ARBITRAGE SCHEMES

By · Wednesday, March 18th, 2009

As discussed with you, these days when equity markets are going up, it is an ideal time to invest in Arbitrage schemes for following reasons:


1. Fund Managers get good opportunities to lock in decent arbitrage returns

2. Fund Managers are of the view that this is a bear market rally which will last till this month end & then correct once again in the month of April. This will give an opportunity to unwind when future goes into discount; thereby enhancing overall returns

3. There is negative correlation between Sensex & NAV of the arbitrage schemes i.e. when markets go up, NAV of arbitrage schemes go down & vice versa. This will be seen clearly from the following table of SENSEX movement v/s J M Arbitrage Advantage Scheme NAV movements:

DATE
NAV
CHANGE
SENSEX
CHANGE
02-Mar-09
12.4016
8607
03-Mar-09
12.3948
-0.055%
8427
-2.09%
04-Mar-09
12.3794
-0.124%
8446
0.23%
05-Mar-09
12.3937
0.116%
8198
-2.94%
06-Mar-09
12.3826
-0.090%
8326
1.56%
09-Mar-09
12.4035
0.169%
8160
-1.99%
12-Mar-09
12.3994
-0.033%
8344
2.25%
13-Mar-09
12.3950
-0.035%
8757
4.95%
16-Mar-09
12.3963
0.010%
8944
2.13%
17-Mar-09
12.4039
0.061%
8864
-0.89%

 

4. Returns in these schemes as on last F & O Settlement Date: 26-02-09:

Derivative Schemes (Growth Option)
Annualized Returns for period less than 1 year, CAGR for 1 year & above
Report As On: 26 Feb, 2009
 AUM 
 NAV 
1M
3M
6M
1Y
ARBRITRAGE SCHEMES
HDFC Arbitrage Fund – Retail – Growth
237.43
11.12
7.48
8.38
9.14
7.73
ICICI Prudential Blended Plan  – Option A – Growth
91.28
13.47
6.21
8.72
9.26
7.70
ICICI Prudential Blended Plan  – Option B – Growth
10.80
13.16
6.69
6.55
7.32
7.01
ICICI Prudential Equity & Derivatives Fund – I O – Retail – Growth
327.52
12.04
9.16
6.36
7.70
6.81
IDFC Arbitrage Fund – Plan A (Regular) – Growth
302.33
11.82
4.90
6.08
7.63
6.37
IDFC Arbitrage Plus Fund – Plan A – Growth
212.57
10.68
5.51
8.96
10.95
JM Arbitrage Advantage Fund – Growth
253.91
12.38
11.08
7.20
8.67
7.76
JM Equity & Derivative Fund – Growth
N.A.
13.0471 (29-Jan-09)
3.78
3.91
6.47
6.09
Kotak Equity Arbitrage Fund – Growth
173.19
13.03
10.25
9.18
9.09
7.43
Religare Arbitrage Fund – Growth
68.02
11.60
7.39
6.55
7.99
7.18
SBI Arbitrage Opportunities Fund -  Growth
317.31
12.12
4.97
7.11
8.36
6.90
** The Returns for Derivative Schemes are Absolute Returns for period less than 1 year, CAGR for 1 year and above.
AUM and Maturity Data as on 31st Jan 2009

Topics: Arbitrage Schemes · Tags:

Comments

By Biren Mehta on April 8th, 2009 at 14:09

Hi Sunil ,

You have also put JM equity & derivative fund in the comparision . The fund has been discontinued from the past 2 months . Its been converted into an index plus category as JM nifty plus fund.

you can remove it from your comparision .

regards
Biren

 

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