Mirae Asset Mutual Fund has launched Mirae Asset Arbitrage Fund, an open-ended scheme investing in arbitrage opportunities. The fund will be benchmarked against Nifty 50 Arbitrage Index.
Here are some key features of the fund:
- Will predominantly invest in completely hedged arbitrage opportunities (simultaneous transactions of a long position in cash and exactly short position in futures)
- A small portion will be invested in other arbitrage opportunities (corporate action driven)
- Aims to provide relatively risk-free returns without taking any directional views on equity markets
- If arbitrage opportunities are limited, the scheme may invest a small portion in high quality low duration debt securities or money market instruments
- The margin money requirement for the purposes of derivative exposure will be held in the form of term deposits, cash or cash equivalents
In a press release, Swarup Mohanty, CEO, Mirae Asset MF said, “The fund aims to offer relatively risk-free returns without taking any directional equity risk. It seeks to focus on arbitrage opportunities, in the equities as well as benefits from market volatility. This category is suitable for short to medium term investments.”
Jignesh N. Rao, Jigar Shethia and Mahendra Jajoo will co-manage the fund.
