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Tata Mutual Fund has launched Tata Arbitrage Fund, an open-ended equity scheme that targets to generate reasonable income by investing predominantly in arbitrage opportunities in the cash and derivative segments of equity markets besides debt and money market instruments.
The new fund offer will close for subscription on December 17 and the minimum investment is ₹5,000.
Rahul Singh, CIO (Equities), Tata Asset Management, said the scheme targets investors with moderately low risk appetite and insulates investors from equity market risk due to its fully hedged equity exposure.
The scheme is bench marked to Nifty 50 Arbitrage Index since it will invest mostly in risk-free arbitrage strategies. 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 and equity related instruments including equity derivatives such as index futures, stock futures, stock options, index options and a maximum of 35 per cent in debt and money market instruments.
Birla MF launches ETF
Aditya Birla Sun Life AMC has launched Aditya Birla Sun Life Nifty Next 50 ETF, an open-ended scheme that will track Nifty Next 50 index. The ETF offers investors an opportunity to invest in the next rung of 50 stocks below Nifty 50.
The new fund offer would be open for subscription between December 11 and 17. The ETF will reopen for continuous sale and repurchase within five business days from the date of allotment. 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, it said.
A Balasubramanian, CEO, Aditya Birla Sun Life AMC, said the Nifty Next 50 has a well-diversified portfolio across sectors with relatively less concentrated exposure to any one sector. For instance, he said the top five sectors in Nifty Next 50 account for 76 per cent exposure as compared to 84 per cent in case of Nifty 50. ETFs are mutual funds listed and traded on stock exchanges such as shares.
The minimum application amount for this fund is ₹5,000 and in multiples of ₹1,000 thereafter, during the NFO.
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