Bajaj Finserv Mutual Fund has introduced a new investment opportunity, the Bajaj Finserv Arbitrage Fund, in the hybrid category.
Subscriptions for this fund are open from September 8 and will continue until September 13, 2023.
This fund falls under the “open-ended” category, allowing investors to redeem their investments at their convenience.
The fund aims to provide short-term income with minimal risk.
Low Entry Investment
Investors can begin with an initial investment of just ₹500, with subsequent investments in multiples of ₹1. An exit load of 0.25 percent applies if investors redeem within 15 days.
The benchmark for this fund is the NIFTY 50 Arbitrage TRI, managed by fund managers Nimesh Chandan and Siddharth Chaudhary.
Who Should Consider Investing?
This scheme is an attractive option for those seeking short-term income. It generates income through arbitrage in both the cash and derivatives segments of the equity market.
The primary goal is to deliver returns through arbitrage opportunities while maintaining a balanced investment approach in debt and money market instruments.
However, it’s important to note that there is no guaranteed outcome for this scheme.
Understanding Hybrid Mutual Funds
Hybrid mutual funds offer a balanced mix of equity and debt investments, presenting lower risk compared to pure equity schemes.
They come in various categories, including Aggressive Hybrid, Conservative Hybrid, Balanced Hybrid, Dynamic Asset Allocation, Multi Asset Allocation, Arbitrage, and Equity Saving Schemes.
