Tata Mutual Fund has launched its open ended arbitrage fund - Tata Arbitrage Fund. 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 and debt and money market instruments.
NFO will open on December 10, 2018 and close on December 17, 2018. Sailesh Jain, Fund Manager, Tata Mutual Fund will manage the fund.
Rahul Singh, CIO-Equities, Tata MF, 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"
Prathit Bhobe, CEO & MD, Tata MF said that, " 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, 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.
In another development, Aditya Birla Sun Life Mutual Fund launched its new ETF - Aditya Birla Sun Life Nifty Next 50 ETF, an open ended scheme tracking Nifty Next 50 Index. The ETF offers investors an opportunity to invest in the next rung of 50 stocks below Nifty 50. The ETF will hold all the securities forming the Nifty Next 50 Index in the same proportion of the index.
NFO would open for subscription on December 11, 2018 and close on December 17, 2018. The investment objective of the scheme is to provide returns that closely correspond to the total returns of securities as represented by Nifty Next 50 Index, subject to tracking errors.
A Balasubramanian, CEO, Aditya Birla Sun Life MF said, “The stocks comprising Nifty 50 and the Nifty Next 50 make up the 100 most liquid stocks within the large-cap universe. The Nifty Next 50 Index focuses on stocks that have the potential to grow and move to the top. This is hence a compelling proposition to tap into India’s growth story.”
Explaining further, Balasubramanian said, “It is also observed over a longer period of time, Next Nifty 50 companies tend to deliver better performance over the main indices given the nature of the size of companies and its future growth potential.”
Lovelish Solanki, Fund Manager, Aditya Birla Sun Life MF will manage this ETF.