Markets

Mahindra Manulife MF launches arbitrage fund NFO

Our Bureau Mumbai | Updated on August 11, 2020

Mahindra Manulife Mutual Fund has launched a new open ended arbitrage opportunities fund that will invest in equity, derivatives and debt markets.

The new fund offer of Mahindra Manulife Arbitrage Yojana will be open for investment between August 12 and 19. The scheme will reopen for continuous sale and repurchase from August 25.

The fund is suitable for investors who are looking for short-term investment options with relatively low risk, tax efficient returns, and looking to park money in a scheme relatively less impacted by market volatility.

The fund house will invest in arbitrage position between cash and futures trading on exchanges, invest in basket of stocks and short the corresponding futures against it, or derive higher returns from the implied cost of carry between the underlying and the derivatives market.

Ashutosh Bishnoi, Managing Director, Mahindra Manulife Mutual Fund, said the investor participation in arbitrage market over years have seen a steady rise due to immense underlying opportunities available.

The fund would invest minimum 65-100 per cent in equity and equity related instruments including equity derivatives, up to 35 per cent in debt and money market securities including tri-party repo, reverse repo.

Under defensive circumstances, the scheme would invest up to 65 per cent in equity and equity related instruments including equity derivatives, up to 35-100 per cent in debt and money market securities including tri-party repo, reverse repo, and up to 10 per cent in units issued by REITs & InvITs.

Published on August 11, 2020

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