Reliance Arbitrage Advantage Fund

Reliance Arbitrage Advantage Fund is managed by Mr. Ashwani Kumar. The scheme seeks to generate income by taking advantage of the arbitrage opportunities that potentially exists between cash and derivative market and within the derivative segment along with investments in debt securities & money market instruments. If you have already invested in this scheme, exit now to invest in a better performing fund in this category.

Where does Reliance Arbitrage Advantage Fund invest your money?

Reliance Arbitrage Advantage Fund is an equity oriented hybrid fund which means most of your money will be invested in both equity and cash & cash equivalents. The fund invests close to 71% of its assets in equities through derivatives while 28% of its assets are invested in Cash and Cash Equivalents. Its equity investment is having mid cap bias, about 38% of the fund’s money is allocated to stocks of mid sized companies and 53.67% to those of large companies. Mid sized stocks can give kicker returns as they turn into large stocks but this happens not so frequently.

Suitable for?
  • HNI’s
Not suitable for?
  • Retail Investors
How has Reliance Arbitrage Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in October 2010, your value of investments would be around to Rs 1.26 lakhs. The performance has been similar to other funds in this category. It has been giving around 9.16% returns for those who have stayed invested since inception.  

Assume you had invested Rs 10,000 every month in Reliance Arbitrage Fund through SIP since inception today you would just have around Rs 3.48 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
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 a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Reliance Arbitrage Fund is 0.39%. 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 an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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