GEMGAZE

March 2017

All the GEMs from the 2016 GEMGAZE have performed reasonably well through thick and thin and figure prominently in the 2017 GEMGAZE too. 

Kotak Equity Arbitrage Fund Gem

Incorporated in September 2005, Kotak Equity Arbitrage Fund has an AUM of Rs 5,629 crore. The one-year return of the fund is 6.20% modestly trailing the category average of 6.55%. The top three sectors are finance, energy, and healthcare. Top five holdings constitute 22.22% of the portfolio, with the equity exposure at 68.1% and debt constituting 27.41% of the portfolio. The portfolio turnover ratio is 341% and the expense ratio is 1.12%. The fund is benchmarked against the Nifty Fifty Arbitrage Index with Mr. Deepak Gupta efficiently managing the fund since September 2008.

JM Arbitrage Advantage Fund Gem

The Rs 3828 crore JM Arbitrage Advantage Fund, incorporated in July 2006, has earned a one-year return of 6.59% a tad higher than the category average return of 6.55%. Top five holdings constitute 33.73% of the portfolio with finance, energy, and FMCG forming the top three sectors. Equity constitutes 67.86% of the portfolio with 29.15% in debt. The fund is benchmarked against the CRISIL Liquid Fund Index. The fund is managed by Chaitanya Choksi since February 2011 and Asit Bhandarkar and Sanjay Kumar Chhabaria since July 2014.

SBI Arbitrage Opportunities Fund Gem

SBI Arbitrage Opportunities Fund, incorporated in November 2006, has an AUM of Rs 891 crore. Its one-year return is 5.88%, as against the category average return of 6.55%. The top five holdings constitute 38.47% of the portfolio. Finance, energy, and healthcare are the top three sectors. 70.11% of the portfolio is made up of equity with 29.52% in debt. The portfolio turnover ratio of the fund is a massive 1020%. The expense ratio is comparatively low at 0.98%. The fund is benchmarked against the CRISIL Liquid Fund Index. The fund is managed by Neeraj Kumar since October 2012.

IDFC Arbitrage Fund Gem

IDFC Arbitrage Fund is a nine-year old fund with an AUM of Rs 2777 crore. Its one-year return of 5.97% is a tad lower than its category average of 6.55% at present. The fund is amongst the more consistent players in terms of beating the CRISIL Liquid fund Index over 70% of the times on a rolling – return basis. Top five holdings constitute 29.41% of the portfolio, with finance, energy, and auto being the top three sectors. The entire assets allocated to equity are 66.84% and 35.06% of the assets are in debt. While the portfolio turnover ratio is high at 250%, the expense ratio is very low at 0.93%, an icing on the cake, indeed. The fund has been managed by Yogik Pitti since June 2013, Harshal Joshi since October 2016, and Arpit Kapoor since March 2017.

ICICI Prudential Equity Arbitrage Fund Gem

Incorporated in December 2006, ICICI Prudential Equity Arbitrage Fund has an AUM of Rs 7094 crore. The one-year return of the fund is 6.25% slightly trailing the category average of 6.55%. The top three sectors are finance, FMCG, and auto. Top five holdings constitute 15.36% of the portfolio, with the equity exposure at 68.35% and debt constituting 36.18% of the portfolio. The portfolio turnover ratio is a towering 1135% and the expense ratio is 1.02%. The fund is benchmarked against the CRISIL Liquid Fund Index with Mr. Manish Banthia and Mr. Kayzad Eghlim efficiently managing the fund since November 2009 and February 2011 respectively.