Union AMC launches arbitrage fund

By Morningstar |  31-01-19 | 

Union AMC has launched Union Arbitrage Fund, an open-ended scheme investing in arbitrage opportunities.

Key Points:

  • New Fund Offer Period: 30 January 2019 to 13 February 2019
  • Scheme re-opens for continuous sale and repurchase on: 27 Feb 2019
  • Benchmark: NIFTY 50 Arbitrage Index$
  • Co-Fund Managers: Vishal Thakker (Equity Portion) and Devesh Thacker – (Debt Portion)
  • Exit Load: 0.25% if units are redeemed or switched out on or before completion of 1 month from the date of allotment of units, Nil if units are redeemed or switched out after completion of 1 month from the date of allotment of units.

The scheme will invest in arbitrage opportunities between spot and futures prices of exchange traded equities and the arbitrage opportunities available within the derivative segment as per the investment objective and the asset allocation pattern of the scheme.

 The fund is ideally suited for investors looking to park short term money with moderately low risk and investment horizon of three months and above.

From amongst various strategies available, the scheme may, apart from the above mentioned cash futures arbitrage strategy, also adopt index arbitrage, calendar spread arbitrage or arbitrage strategies driven by corporate action or event driven strategies.

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