Quant Mutual Fund has launched the new Quant Arbitrage Fund, an open-ended scheme focused on investing exclusively in arbitrage opportunities.
The New Fund Offer (NFO) will remain open until April 1, after which the fund will be available for regular purchases and redemptions.
Investment Strategy and Management
The primary goal of this scheme is to generate capital appreciation and income by utilizing arbitrage opportunities in both the cash and derivative segments of the equity market. Additionally, the fund will also invest in debt and money market instruments.
This fund is benchmarked against the Nifty 50 Arbitrage TRI and will be managed by experienced fund managers: Sanjay Sharma, Sameer Kate, and Yug Tibrewal.
Investment Rules and Withdrawal Terms
Minimum Investment: The initial investment will start at Rs 5000, and additional investments can be made with a minimum of Rs 1000.
Exit Load: An exit load of 0.25% will be charged if units are redeemed within the first month. There will be no exit load after one month.
Asset Allocation:
65-100% in equities and derivatives
0-35% in debt and money market instruments
0-10% in REITs and InvITs
Ideal Investors for This Fund
This scheme is ideal for investors seeking to generate short-to-medium term income with low risk.
It is categorized as a low-risk option, making it a stable choice for those wanting steady returns while avoiding high market volatility.
Unique Features of the Fund
The Quant Arbitrage Fund offers a low-risk investment opportunity through equity market arbitrage.
As per SEBI guidelines, the fund will not engage in short-selling in the cash market. The debt portfolio will be managed to minimize interest rate risk while generating income.
Overall, the Quant Arbitrage Fund is a great choice for investors looking for safe and stable returns with low risk.
