MUMBAI:
Mahindra Manulife Mutual Fund, a wholly owned subsidiary of Mahindra and Mahindra Financial Services Limited (MMFSL) launches ‘Mahindra Manulife Arbitrage Yojana,’ an open ended scheme for investment in arbitrage opportunities available in equity, derivatives and debt markets. The scheme is suitable for investors who are looking for short term investment options with relatively low risk, tax efficient returns, and looking to park money in a scheme relatively less impacted by market volatility.
The New Fund Offer opens on August 12, 2020 and closes on August 19, 2020. The scheme will reopen for continuous sale and repurchase from August 25, 2020. Mahindra Manulife Mutual Fund would adopt best-in- class market strategies and invest in arbitrage position between cash & futures trading on exchanges, invest in basket of stocks and short the corresponding futures against it, or derive higher returns from the implied cost of carry between the underlying and the derivatives market.
Ashutosh Bishnoi, MD and CEO, Mahindra Manulife Mutual Fund said, “The investor participation in arbitrage market over the years have seen a steady rise due to immense underlying opportunities available. Mahindra Manulife Arbitrage Yojana is suitable for Investors who are seeking income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment over short term. The scheme will use several strategies to identify arbitrage opportunities across market cycles and offer returns at relatively lower volatility and lower risk.”
Mahindra Manulife Arbitrage Yojana under normal circumstances would invest minimum 65-100% in equity and equity related instruments including equity derivatives, upto 35% in debt and money market securities including tri-party repo, reverse repo. And, under defensive circumstances the scheme would invest 0 – 65% in equity and equity related instruments including equity derivatives, upto 35 – 100% in debt and money market securities including tri-party repo, reverse repo, and upto 10% in units issued by REITs & InvITs.
