AgenciesMotilal Oswal Mutual Fund has announced the launch of Motilal Oswal Arbitrage Fund, an open-ended equity scheme investing in arbitrage opportunities.
The new fund offer or NFO of the scheme will open for subscription on December 16 and will close on December 19. The scheme will reopen for continuous sale and repurchase on December 27.
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The investment objective of the scheme is to generate long-term growth of capital by predominantly investing in arbitrage opportunities present between the cash and derivative markets, as well as within the derivative segment, complemented by investments in debt securities and money market instruments.
The scheme will be benchmarked against the Nifty 50 Arbitrage Index Total Return Index and will be managed by Ajay Khandelwal, Niket Shah, Santosh Singh, Atul Mehra, and Rakesh Shetty.
The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter. For weekly, fortnightly, and monthly SIP, the minimum amount is Rs 500 and a multiple of Re 1 thereafter with a minimum of 12 installments. The minimum additional purchase amount is Rs 500 and in multiples of Re 1 thereafter
The arbitrage fund will allocate 65-100% in equity and equity-related instruments including derivatives and 0-35% in debt and money market instruments including the margin money deployed in derivative transactions.
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The scheme aims to generate returns by strategically investing in arbitrage opportunities between spot and future prices of exchange-traded equities and the arbitrage opportunities available within the derivative segment. If, in the opinion of the fund manager, suitable arbitrage opportunities are unavailable, the scheme may predominantly invest in short-term debt and money market securities.
The scheme is suitable for investors who are seeking capital appreciation over the long term and want to invest predominantly in arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment. The principal invested in the scheme will be at “low risk” according to the riskometer of the scheme.
The new fund offer or NFO of the scheme will open for subscription on December 16 and will close on December 19. The scheme will reopen for continuous sale and repurchase on December 27.
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Also Read | Sensex up 4,487 points since November lows. What should mutual fund investors do?
The investment objective of the scheme is to generate long-term growth of capital by predominantly investing in arbitrage opportunities present between the cash and derivative markets, as well as within the derivative segment, complemented by investments in debt securities and money market instruments.
The scheme will be benchmarked against the Nifty 50 Arbitrage Index Total Return Index and will be managed by Ajay Khandelwal, Niket Shah, Santosh Singh, Atul Mehra, and Rakesh Shetty.
An exit load of 0.25% will be applicable if redeemed within 30 days from the day of allotment. The exit load will be nil if redeemed after 30 days from the date of allotment.
The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter. For weekly, fortnightly, and monthly SIP, the minimum amount is Rs 500 and a multiple of Re 1 thereafter with a minimum of 12 installments. The minimum additional purchase amount is Rs 500 and in multiples of Re 1 thereafter
The arbitrage fund will allocate 65-100% in equity and equity-related instruments including derivatives and 0-35% in debt and money market instruments including the margin money deployed in derivative transactions.
Also Read | HDFC Bank, SBI, RIL among 7 stocks owned by more than 500 mutual fund schemes in November
The scheme aims to generate returns by strategically investing in arbitrage opportunities between spot and future prices of exchange-traded equities and the arbitrage opportunities available within the derivative segment. If, in the opinion of the fund manager, suitable arbitrage opportunities are unavailable, the scheme may predominantly invest in short-term debt and money market securities.
The scheme is suitable for investors who are seeking capital appreciation over the long term and want to invest predominantly in arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment. The principal invested in the scheme will be at “low risk” according to the riskometer of the scheme.
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