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Mirae Asset India launches Mirae Asset Arbitrage Fund

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Last Updated: Jun 03, 2020, 09.13 AM IST

Summary The fund will be benchmarked against Nifty 50 Arbitrage Index. The fund will be managed by Jignesh N. Rao and Jigar Shethia (Equity) and Mahendra Jajoo (Debt).

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Mirae Asset Investment Managers India announced the launch of Mirae Asset Arbitrage Fund. The New Fund Offer or NFO will open for subscription from June 3 and close on June 12.

The fund will be benchmarked against Nifty 50 Arbitrage Index. Jignesh N. Rao and Jigar ShethiaThe fund will manage the equity portion of the fund, and Mahendra Jajoo will manage the debt part.

According to a press release from the fund house, 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).

The scheme 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.

“Mirae Asset Arbitrage 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. The fund aims to benefit from Mirae’s expertise and strength on both, the equities and debt side,” said Swarup Mohanty, CEO, Mirae Asset Investment Managers (India).

The minimum initial investment in the scheme will be Rs 5,000 and multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded.

The Mirae Arbitrage Fund will offer the regular and direct Plan with growth and dividend option (payout & re-investment) to investors.

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