FLAVOUR OF THE MONTH – ARBITRAGE SCHEME
In continuation to our call for investing in Arbitrage as an asset class for all aspects of safety, stability & returns, one scheme in particular which should attract investors’ attention is RELIGARE ARBITRAGE SCHEME.
While buying cash & selling futures, the said scheme has got additional benefit of receiving dividend on the stocks bought. These dividends will accrue to the scheme in the current month which will add on to the returns on over & above the locked in arbitrage returns of close to 70 bps.This will benefit both existing investors as well as new investors who would invest in the current month. Various Companies who have declared dividend & are in the portfolio of Religare Arbitrage Scheme, have their Record Dates falling due in the current month of June.
It is a very actively managed scheme; wherein the Fund Manager is churning the portfolio regularly by locking in arbitrage opportunities & consistently unwinding the same ( as & when opportunity arises); thereby enhancing overall portfolio returns. The said scheme also has uninterrupted quarterly dividend track record since September 2007 ( Inception date of the scheme: April 2007).
Other scheme details of RELIGARE ARBITRAGE FUND:
The said scheme currently has corpus of Rs.176 Crs.
DIVIDEND HISTORY:
Date Declared Dividend Per unit
26-Sep-07 0.30
18-Dec-07 0.15
18-Mar-08 0.20
20-Jun-08 0.15
15-Sep-08 0.20
15-Dec-08 0.20
12-Mar-09 0.15
LOAD STRUCTURE:
For Investment of = Rs. 50 Lakhs:
Entry Load : NIL;
Exit Load : 0.25% (if redeemed / switched out on or before 25 days from the date of allotment); NIL (If redeemed after 25 days from the date of allotment).
Investment date: Any Business day
Redemption date: Last Thursday of the month coinciding with the date of expiration of F & O Settlement date
We strongly advise our clients to invest in the abovementioned scheme with 3-6 month investment horizon in the current month itself ( on days when Sensex is up & NAVs are down)
Most other schemes in arbitrage space should also be in a similar situation of receiving dividend on their cash stocks in the month of June. Hence it makes sense to take an investment call in this asset class sooner than later in this current month.
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