ITI Mutual Fund has launched its arbitrage fund - ITI Arbitrage Fund. The NFO will open today and close on September 03, 2019.
The fund will be benchmarked against Nifty 50 Arbitrage Index and will predominantly invest in arbitrage opportunities available in the equity markets and balance in high quality debt securities with maturities less than 91 days. If arbitrage opportunities are limited, the scheme may invest in maximum of 35% in high quality debt instruments with maturities of up to 91 days.
George Heber Joseph and Milan Mody will manage the fund.
In a press release, George Heber Joseph, CEO & CIO, ITI Mutual Fund, said, “ITI Arbitrage Fund aims to generate returns by investing in arbitrage opportunities available in the market and providing relatively risk-free returns without any directional equity risk. The fund plans to take offsetting positions in cash and futures markets without any unhedged or open exposures. This fund is suitable for Investors with a short to medium term investment horizon and looking for an alternate option to bank fixed deposits / liquid funds.”
