Birla Sun Life Enhanced Arbitrage Fund

Birla Sunlife Enhanced Arbitrage Fund is managed by Mr. Ajay Garg. The Scheme seeks to generate income by investing predominantly in equity and equity related instruments. It intends to take advantage from the price differentials / mis-pricing prevailing for stock / index in various market segments (Cash & Future). Arbitrage funds are very risky and are not suitable for core objectives. This fund has given an average performance. New investors can skip this fund for a better performing fund in this category.

Where does Birla Sunlife Enhanced Arbitrage Fund invest your money?

Birla Sunlife Enhanced Arbitrage Fund is a mid cap oriented Arbitrage fund which means your money will be invested in equity and equity related instruments or funds of medium and small sized companies This fund has 23.26% exposure to large companies, 37.86% exposure to medium sized companies and about 36.15% exposure to small sized companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has Birla Sunlife Enhanced Arbitrage Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in July 2009, your value of investments would be around Rs 1.21 lakhs. The performance has been similar to other funds in this category. The fund has been giving around 6.41% returns for those who have stayed invested since inception. 

Assume you had invested Rs 10,000 every month in Birla Sunlife Enhanced Arbitrage Fund through SIP since inception today you would have around Rs 5.27 lakhs.

How will Birla Sunlife Enhanced Arbitrage Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a quarter. Look out for news and developments that can affect the sector as a whole.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within 90 days from the date of allotment than an exit load of 0.75% is charged while if units are sold within 180 days from the date of allotment than an exit load of 0.50% is charged. No exit load applies for units withdrawn post 180 days. Expense ratio of Birla Sunlife Enhanced Arbitage Fund is 1.64% This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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