SOME MORE INTERESTING HISTORICAL FACTS ON ARBITRAGE SCHEMES
Hi,
Of late ( once again since February 2009) I have been recommending to invest in Arbitrage schemes with an intention to earn steady tax free returns Q on Q with negligible or no down side.
Instead of timing your entries & exits in this asset class, if one would have invested in say October 2006 & held it during the bull cycle & thereafter even during the bear market cycle post January 2008, the said asset class has declared dividend of 2% or higher on Q on Q basis since December 2006 till last quarter i.e. this asset class has generated 8% post tax returns Y on Y from 2006 till date ( without any downside ). No other asset class viz. equity, income, gilt etc, has generated such steady returns for the past so many years.
To reiterate once again:
1. This asset class has generated 8-9% post tax returns Y on Y since 2006 onwards
2. This asset class has no volatility attached to it unlike any of the debt or equity schemes
3. It has been the safest & most steady asset class in any investor portfolios
4. J M Arbitrage Advantage scheme has an uninterrupted dividend track record of 2% or higher per quarter since December 2006 i.e. they have declared dividend of 8% or higher every year since December 2006 as can be seen from the table below:
|
Date Declared |
Dividend Per Unit (Rs.) |
|
22-Dec-06 |
0.22 |
|
23-Mar-07 |
0.20 |
|
22-Jun-07 |
0.20 |
|
21-Sep-07 |
0.25 |
|
18-Jan-08 |
0.20 |
|
19-Mar-08 |
0.25 |
|
20-Jun-08 |
0.22 |
|
16-Sep-08 |
0.18 |
|
16-Dec-08 |
0.22 |
|
18-Mar-09 |
0.20 |
Markets are on the upswing, giving opportunities to Fund Managers to lock in higher returns and investors to invest at lower NAVs on days when markets are up ( it is reverse correlation between markets going up & NAVs going down & vice versa). Increase your exposure to this asset class & reduce your exposure to asset classes taking call on interest rates or equity markets i.e. market directional calls either in debt or in equity
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