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Relatively lower risk as arbitrage strategy focuses on protecting downside risk by capturing market spreads
Better tax efficiency on returns compared to short term debt funds
One of the least volatile hybrid schemes that is suitable for investment across market cycles
Investment Objective

The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Product Details
Available Plans for subscription
Regular | Direct (D)
Available Options
Dividend | Growth (D)
Available Sub-options
Dividend Payout | Dividend Re-investment (D)
D - Default
Key Considerations
  • Manages Market Volatility

    Comparison with Debt and Equity Indices

    Low Volatility compared to Equity Schemes as represented by spot market benchmark index Nifty 50 TRI

    Nifty 50 Arbitrage Index Nifty 50 TRI CRISIL Liquid Fund Index
    This graph shows the movement of Rs 10,000 invested in the indices on 1 April 2010. Data period - 1 April 2010 – 30 June 2020. Data Source: MFI. The data provided here is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Mahindra Manulife Investment Management Private Limited (Formerly known as Mahindra Asset Management Company Private Limited)/ Mahindra Manulife Mutual Fund is not guaranteeing or forecasting any returns. Past performance may or may not be sustained in future.
  • Offers Tax Efficiency
    Tax Calculation for Individual Investors Liquid Fund
    (Crisil Liquid Fund Index)
    Arbitrage Fund
    (Nifty 50 Arbitrage Index)
    Invested Amount (Rs) 10000 10000
    1 Year Return (%) 7.48% 6.81%
    1 Year Return (Rs) 748 681
    Effective Tax Rate^ (%) 34.32% (STCG Tax) 11.44% (LTCG Tax)
    Tax on Returns (Rs) 256.71 77.91
    Returns Post Taxation (Rs) 491.29 603.09
    Net Amount (Rs) 10491.29 10603.09
    Net Returns (%) 4.91% 6.03%

    ^Including CESS and surcharge

    1 year returns % provided above are on the basis of historical average rolling returns of respective benchmark indices, representing categories given above. Data period 1 April 2010 – 29 June 2020| Data Source: MFI. The data provided above is for illustrative purpose only and has been prepared in line with prevailing Income Tax Laws and Finance Act, 2020 and should not be construed as a promise on minimum returns and safeguard of capital. STCG Tax rates @30% assuming Individual is in Tax bracket 50 Lakh and 1 Cr and LTCG tax @10% on gains exceeding Rs.100,000 in a financial year, provided STT has been paid on transfer of units. In case STT is not paid, tax @20% with indexation benefit would apply. In view of individual nature of the tax consequences, the investor is advised to consult his/her own professional tax advisor. Mahindra Manulife Investment Management Private Limited (Formerly known as Mahindra Asset Management Company Private Limited)/Mahindra Manulife Mutual Fund is not guaranteeing or forecasting any returns. Past performance may or may not be sustained in future.

  • Arbitrage Strategy Hedges Risks Completely
    Buy Stock @ Rs 1000 & Sell Futures @ Rs 1080 When Stock Price MOVES UP To Rs 1020 When Stock Price REMAINS STEADY At Rs 1000 When Stock Price GOES DOWN To Rs 900
    Profit in Cash Market (Rs) 20 0 -100
    Profit in Futures Market (Rs) 60 80 180
    Overall Profit (Rs) 80 80 80
    RETURNS ARE LOCKED-IN

    This is for illustration purposes only and to explain the concept of arbitrage strategy, as provided above. For detailed strategy and associated risk factors, please refer the scheme information document of the Scheme available on our website – www.mahindramanulife.com

Asset Allocation

The Asset Allocation Pattern of the Scheme would be as under:

Instruments Indicative Allocation (% of assets) Risk Profile
Normal Circumstances Defensive Circumstances# High/Medium/ Low
Equity & Equity related instruments including Equity Derivatives* 65-100 0-65 Medium to High
Debt and Money Market Securities(including TREPS (Tri-Party Repo), Reverse Repo) 0-35 35-100 Low to Medium
Units issued by REITs & InvITs 0-10 0-10 Medium to High

*The Scheme will use derivatives (including index futures, stock futures, index options and stock options) as part of the arbitrage strategy of the Scheme and subject to guidelines issued by SEBI from time to time.

# If the arbitrage opportunities in the market are not available / negligible or returns are lower than alternative investment opportunities as per the allocation pattern, then the Fund Manager may choose to follow an alternate asset allocation, keeping in view the interest of the unitholders. For Detailed Asset Allocation refer SID/KIM available online at www.mahindramanulife.com or visit nearest ISC

Investment Details
Purchase Amount Rs. 1,000/- and in multiples of Re. 1/- thereafter.
Switch Amount Rs. 1,000/- or 100 units or account balance, whichever is lower
Redemption Amount Rs. 1,000/- and in multiples of Re. 0.01/- thereafter.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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