Mumbai, Mirae Asset Investment Managers India, one of the fastest-growing fund houses in the country today announced the launch of ‘Mirae Asset Arbitrage Fund’, an open-ended scheme investing in arbitrage opportunities. The NFO will open for subscription from June 3, 2020, and will close on June 12, 2020. The fund will be benchmarked with Nifty 50 Arbitrage Index. Its key features are:
- It will predominantly invest in completely hedged arbitrage opportunities (simultaneous transactions of a long position in cash and exactly short position in futures)
- A small portion will be invested in other arbitrage opportunities (corporate action-driven)
- Aims to provide relatively risk-free returns without taking any directional views on equity markets
- If arbitrage opportunities are limited, the scheme may invest a small portion in high-quality low duration debt securities or money market instruments
- The margin money requirement for the purposes of derivative exposure will be held in the form of Term Deposits, Cash or Cash equivalents.
The fund will be managed by Mr Jignesh N. Rao and Mr Jigar Shethia (Equity), Mr Mahendra Jajoo (Debt). “Mirae Asset Arbitrage Fund aims to offer relatively risk-free returns without taking any directional equity risk. It seeks to focus on arbitrage opportunities, in the equities as well as benefits from market volatility. This category is suitable for short to medium-term investments. The fund aims to benefit from Mirae’s expertise and strength on both, the equities and debt side,” said Mr Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.
The minimum initial investment in the scheme will be Rs 5,000 and multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded. The Mirae Arbitrage Fund will offer the Regular and Direct Plan with Growth and Dividend Option (Payout & Re-investment) to investors. The Scheme will re-open for continuous Sale and Repurchase from June 22, 2020.