Pune (Voice news service):- Franklin Templeton (India) announced the launch of its open-ended arbitrage fund — Franklin India Arbitrage Fund (FIAF). The fund will aim to achieve capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of equity markets, as well as arbitrage opportunities within the derivative segment, with the remainder allocated to debt and money market instruments. The fund will be managed by Rajasa K, VP & Portfolio Manager, Emerging Markets Equity – India; Yogik Pitti, Senior Manager, Emerging Markets Equity – Trading; and Pallab Roy, Portfolio Manager, India Fixed Income.
The New Fund Offer opens from November 4, 2024, and will close on November 18, 2024, during which units will be available at Rs. 10/- per unit.
The fund will employ an active investment strategy, adjusting its defensive or aggressive postures depending on available opportunities. It will aim to capitalise on the implied cost of carry between the underlying cash and derivatives market, offering potential returns for investors. Furthermore, holding arbitrage funds for over a year will allow investors to benefit from lower capital gains tax rates, making it a tax-efficient investment option.
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India,said, “Arbitrage funds in India are ideal for investors seeking short term income generation without exposing their investments to high risk. Franklin India Arbitrage Fund is a valuable addition to our investment portfolio as we continue expand our product suite to meet the varied needs of our investors, based on their risk profile. As this is a low-risk fund, it is a valuable investment opportunity for both individual and institutional clients in India.”
NFO Features
| Type Of Scheme | An open-ended scheme investing in arbitrage opportunities |
| Investment Objective: | The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. |
| NFO Dates | November 4, 2024 to November 18, 2024 |
| Scheme Re-opensFor continuous SaleAnd Repurchase On | November 21, 2024 |
| Managed By | Rajasa K, Yogik Pitti and Pallab Roy |
| Minimum Amount | Subscription: Fresh Purchase – Rs.5,000/-. Additional Purchase – Rs.1,000/-. Redemption: Rs.1,000/-. The amount forsubscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re. 1/-. SIP: Minimum amount INR 500/- |
| Benchmark | Nifty 50 Arbitrage Index |
| Exit Load | 0.25% if units are redeemed / switched out within 30 days from the date of allotment.NIL thereafter |
