Analyst’s Choice
As per SEBI's Riskometer.
Split between different types of investments
Split between categories of Equity investments
Rating |
VR Opinion |
Risk
|
Return (%) |
|
Expense Ratio (%)
|
|
---|---|---|---|---|---|---|
Kotak Equity Arbitrage Fund - Direct Plan
|
Low
|
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0.43 |
|||
Low
|
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0.39 |
||||
Low
|
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0.37 |
||||
Low
|
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0.29 |
||||
Low
|
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0.34 |
₹51,570 Cr
0.25 (30)
100
1,000
100
1
Investment Strategy
The scheme aims to generate income through arbitrage opportunities emerging out of pricing anomaly between the spot & futures market; and also through deployment of surplus cash in fixed income instruments.
Suitability
"Arbitrage funds invest in equity shares and derivatives, and earn their returns through the price differential between a stock and its futures. You can expect to earn better returns than what you would get from a bank account.
They are usually suitable to park your money for a period ranging between three months to a year. However, we believe that liquid funds, which have a similar risk-return payoff, are a better alternative for most investors for such a time frame. Arbitrage funds may have some appeal for those who are in the highest tax bracket, given the preferential tax treatment of these funds.
The risk of incurring a loss in these funds over the said time frame is low but they do not guarantee returns or safety of capital.
Remember, these funds usually deliver low returns which are only marginally higher than your bank account. They are not suitable if your aim is to build wealth in the long run."
Capital Gains Taxation
Dividend Taxation
Kotak Equity Arbitrage Fund - Direct Plan invests in equity shares and derivatives and earns through the price differential between a stock and its futures.
Mutual funds can be bought directly from the website of the fund house. For instance, Kotak Equity Arbitrage Fund - Direct Plan fund can be purchased from the website of Kotak Mahindra Mutual Fund. You can also buy mutual funds through platforms like MF Central, MF Utility, among others. However, if you are not comfortable buying mutual funds online, you can seek help of a mutual fund distributor. Most banks also act as mutual fund distributors. So you can connect with your bank for assistance.
The NAV of Kotak Equity Arbitrage Fund - Direct Plan is ₹37.5535 as of 14-Aug-2024.
The AUM of Kotak Equity Arbitrage Fund - Direct Plan Fund is ₹51,570 Cr as of 31-Jul-2024
The riskometer level of Kotak Equity Arbitrage Fund - Direct Plan is Low. See More
Company | Percentage of Portfolio |
---|---|
Kotak Money Market Direct-G |
8.63
|
Kotak Liquid Direct-G |
6.32
|
Kotak Savings Direct-G |
5.40
|
Bajaj Finance Ltd CP 91-D 10/09/2024 |
0.96
|
Bajaj Finance Ltd CP 91-D 11/09/2024 |
0.48
|
As of 31-Jul-2024, Kotak Equity Arbitrage Fund - Direct Plan had invested 78.19% in Cash & Cash Eq., 22.11% in Debt and -0.3% in Equity See More
Kotak Equity Arbitrage Fund - Direct Plan is 11 years 7 months old. It has delivered 7.08% returns since inception. See More
1Y
|
3Y
|
5Y
|
7Y
|
10Y
|
Since Inception
|
---|---|---|---|---|---|
8.67%
|
6.73%
|
6.04%
|
6.28%
|
6.63%
|
7.08%
|
No, There is no lock in period in Kotak Equity Arbitrage Fund - Direct Plan.
The expense ratio of Kotak Equity Arbitrage Fund - Direct Plan is 0.43.