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Increase your savings with Aditya Birla Sun Life Arbitrage Fund

Increase your savings with Aditya Birla Sun Life Arbitrage Fund
February 10, 2020 Tom Clark

The Aditya Birla Sun Life Arbitrage Fund Growth Direct Plan, formerly known as Aditya BSL Enhanced Arbitrage Dir Gr till 21 May 2018. It is an open-ended scheme investment objective primarily to generate revenue by investing in equity-related instruments. The scheme aims to take advantage of the prevailing toll manufacturing, stock/index price differentials/mis-pricing in different market segments (Cash & Futures). You will not receive any dividend. Your investment will yield the most significant compounding benefit.

Get some detail about Aditya Birla sun life arbitrage Fund

  • Fund Type – Open-ended
  • Class – equality
  • Category – Arbitrage
  • Minimum investment – Rs. 1000 / –
  • Fund Manager – Mr. Lovelish Solanki
  • Latest NAV – 19.954 (As on 03-Feb-2020)
  • Date of Establishment – July 25, 2009

Get the additional Information

  • Fund Manager Mr. Lovelish Solanki (since about five years)
  • The fund manager has done BMS and MMS in Finance and worked with Edelweiss AMC from January 2008 – February 2011. He worked as an equity/equity derivative trader at Union KBC before working with Birla Sun Life.
  • Launch Date January 01, 2013
  • Benchmark Nifty 50 Arbitrage TR INR

Aditya Birla sun life arbitrage Fund is suitable for investors who are seeking

An investor will get the income over short-term

Aditya Birla sun life arbitrage Fund investments in equity and equity-related securities, including options to take advantage of current price differentials or stock or index mis-pricing in different segments.

Arbitrage funds invest in equities and derive their returns by differentiating between a stock and its futures. You will expect to earn better returns by investing in assets that you will get from a bank account.

Arbitrage funds sufficiently protect their equity investment, which means that their returns are not affected by day to day stock market fluctuations. The risk of loss in these funds is low, but they do not guarantee returns or capital security.

If you are a retail investor, then you can avoid these funds altogether. We believe that liquid funds with a somewhat higher risk-return ratio but higher liquidity are better options.

Taxation of Income: Capital gains

  • If an investor sold his mutual fund units after one year from the date of the start of the investment, if you earn up to Rs 1 lakh in your financial year, then this amount will be exempt from tax. If you get more than Rs 1 lakh, then this amount will be taxed at a rate of 10%.
  • If you are selling your mutual fund unit within one year from the beginning of the date of investment, then any amount you get will be taxed at the rate of 15%.
  • As long as you continue to operate the units, there will be no tax.

Dividends paid by MFS are taxed at the rate of 10% (actually 11,648% including surcharge and cess). An investor cannot pay this tax directly. It will be deducted from the dividend income before it is given to the investor.