NFO Alert: Motilal Oswal Mutual Fund Announced Arbitrage Fund
Motilal Oswal Mutual Fund is a mutual fund company that offers a variety of schemes in equity, debt, and hybrid categories.
Motilal Oswal Mutual Fund has launched Motilal Oswal Arbitrage Fund, which is an open-ended equity scheme investing in arbitrage opportunities. NFO or new fund offer, will open on December 16 for subscription and will be closed on December 19. The scheme will again open on December 27 for continuous repurchase and sale.
The investment goal of this scheme is to generate long-term capital growth by primarily investing in arbitrage opportunities between the cash and derivative markets, as well as in the derivative segment, supported by investments in debt securities and money market instruments.
This scheme will be handled by Ajay Khandelwal, Niket Shah, Santosh Singh, Atul Mehra, and Rakesh Shetty and will be benchmarked against the Nifty 50 Arbitrage Index Total Return Index.
An exit load of 0.25% will apply to redemptions made within 30 days from the date of allotment. There will be no exit load charged on redemptions made after 30 days.
The minimum amount for a subscription is Rs.500 and in multiples of Re. 1 thereafter.
The minimum amount for SIP in weekly, fortnightly, and monthly is Rs.500 and a multiple of Re. 1 thereafter with a minimum of 12 installments. The minimum amount to be purchased additionally is Rs.500 and in multiples of Re. 1 thereafter.
The arbitrage fund will invest 65-100% in equity and equity-linked instruments, including derivatives, and 0-35% in debt and money market instruments, and also include the margin money used in derivative transactions.
The objective of this scheme is to generate returns. Methodically investing in arbitrage opportunities between spot and future prices of exchange-traded equities, also identifying arbitrage opportunities within the derivative segment.
The scheme is relevant for those investors who are looking for capital growth for the long term and want to invest primarily in arbitrage opportunities with derivative segments.
