L&T Mutual Fund
L&T Mutual Fund

L&T Arbitrage Opportunities Fund

L&T Arbitrage Opportunities Fund - Fund Facts
Fund objective
To seek to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.
Inception date
July 02,2014
Fund Managers
Venugopal Manghat, Praveen Ayathan and Karan Desai (for investments in Foreign Securities)
Benchmark index
Nifty 50 Arbitrage Index
SIP availability
Yes
Options
Growth & Dividend options available. The Dividend option offers payout and reinvestment facilities.
Minimum Investment
Lump sum: Fresh purchase: Rs. 5,000; additional purchase: Rs. 1,000; thereafter in multiples of Re.1.
SIP: Rs. 3,000 (minimum instalment amount of Rs. 500 each, minimum 6 instalments)
Entry Load
NIL
Exit Load
On or before 1 month from the date of allotment or Purchase applying First in First out basis - 0.50%.

After 1 month from the date of allotment or Purchase applying First in First out basis - NIL

A switch-out or a withdrawal under SWP may also attract an Exit Load like any Redemption.

No Exit Load will be chargeable in case of switches made between different options of the Scheme.

No Exit Load will be chargeable in case of (i) Units allotted on account of dividend re-investments; and (ii) Units issued by way of bonus, if any.
Annual Recurring Expenses (As on 31st March, 2017)
0.90%
Annual Recurring Expenses for Direct Plan (As on 31st March, 2017)
0.37%
Note:
The above ratio includes 20 bps of additional expenses.
Apart from the above-mentioned expenses, additional expenses of up to 0.30% of daily net assets of the scheme, in compliance with the conditions prescribed and service tax on investment management fees are also being charged.
Dividend History
Click here to view dividend history.
L&T Arbitrage Opportunities Fund - Overview
What is an arbitrage fund?
An arbitrage fund is a type of mutual fund that tries to take advantage of the price differential (of the same asset) between two or more markets or market segments. For example, the fund could exploit the difference in the price of a stock between the cash and derivatives markets.
Consider this illustration:
The above example is for illustration purpose only. Trading and other costs are not considered in the above example. However, one would consider such costs before entering into arbitrage trade.
Why invest in the L&T Arbitrage Opportunities Fund?
The L&T Arbitrage Opportunities Fund seeks to take advantage of the price differential in the cash and derivatives segments of the equity markets to generate returns that could be higher than short term money market/liquid funds. The fund managers will research the markets in-depth to look for opportunities between market segments and focus on delivering absolute positive returns in all market conditions.
L&T Arbitrage Opportunities Fund - Features
Investment Style Details
Scheme Classification
An open ended equity growth scheme
Investment Objective
To seek to generate reasonable returns by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and by investing balance in debt and money market instruments.
This product is suitable for investors who are seeking*
• Generation of reasonable returns over short to medium term
• Investment predominantly in arbitrage opportunities in the cash and derivatives segments of the equity markets; and debt and money market instruments.
• Low risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Normal Asset Allocation

Instruments

Indicative Allocation
(% of net assets)
Risk Profile
Maximum Minimum
Equity and equity related securities and equity derivatives^ 90% 65% Medium to High
Debt and money market instruments including units of liquid schemes launched by mutual fund 35% 10% Low
^ The Scheme may invest in Foreign Securities upto 10% of its net assets subject to the Eligible Investment Amount. Investment in Foreign Securities shall be subject to the investment restrictions specified by SEBI/RBI from time to time.
Terms of issue
The Units of the Scheme will not be available for subscriptions/switch-in during the initial period of 2 years from the date of allotment. Units may be redeemed on or after the Conversion/Maturity Date.
Minimum purchase amount Rs. 5,000
Minimum additional purchase amount Rs. 1,000
Minimum redemption amount/units Rs. 1,000/100 Units

Scheme Information Document, Key Information Memorandum and Application Forms / Transaction Slips available at the ISCs / distributors.

Statutory
L&T Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by L&T Finance Holdings Limited, Sponsor/ Settlor (liability restricted to the seed corpus of Rs. 1 lakh) with L&T Mutual Fund Trustee Limited as the Trustee Company and L&T lnvestment Management Limited as the Investment Manager.
Loads
Entry NIL
Exit Within 60 Days from the date of allotment or Purchase applying First in First out basis
  After 60 Days from the date of allotment or Purchase applying First in First out basis - NIL
  A switch-out or a withdrawal under SWP may also attract an Exit Load like any Redemption.
  No Exit Load will be chargeable in case of switches made between different options of the Scheme.
  No Exit Load will be chargeable in case of (i) Units allotted on account of dividend re-investments; and (ii) Units issued by way of bonus, if any
   
General Services
Investors can contact any of the ISCs at its toll-free number " 1800 2000 400 ". NAVs will be calculated and published on all Business Days. Purchase/Redemption on all Business Days.
Risk factors
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
L&T Arbitrage Opportunities Fund - How to Invest
To invest online
In case you require any more information on investing in the L&T Mutual Fund, please call our toll-free Investor Line on 1800 2000 400 between 9am to 6pm on any business day.
To invest offline
Or
Contact your Relationship Manager at your bank, your adviser or your distributor for an application form.
L&T Arbitrage Opportunities Fund - Downloads