Mirae Asset Arbitrage Fund

Derivatives

India Debt Liquid Market

Liquid

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Mirae Asset Arbitrage Fund Growth invests in alternative assets for non-traditional growth opportunities.

What This Strategy Does

Mirae Asset Arbitrage Reg Gr is an equity arbitrage fund which captures India's ₹1.5 trillion equity arbitrage opportunity through cash-and-carry strategies, deploying capital across financials, industrials, and consumer sectors to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 12 out of 12 years, highlighting its ability to deliver consistent outcomes across market cycles.

Differentiated Positioning

The fund's investment process is differentiated from peers through its unique market-cap and sector positioning, with notable overweights in financialServices and consumerCyclical sectors, and a bias towards large and mid-cap companies.

Defensive Characteristics

The fund's portfolio construction, with a significant allocation to cash and equivalents, suggests a defensive risk profile that could provide downside protection and act as a potential hedge against market volatility.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+5.5% vs +14.5% benchmarkSince Inception

+6.6% vs +6.3% benchmark3Y Annualized

+5.9% vs +6.5% benchmark5Y Annualized

Mirae Asset Arbitrage Fund

Benchmark Index

Benchmark Performance Comparison

Mirae Asset Arbitrage Fund

FD Returns

Risk Profile

Standard Deviation0.5%

Sharpe Ratio-0.48

Detailed Risks

Market Risk

Potential economic slowdown could reduce arbitrage opportunities, mitigated by diversified exposures.

Liquidity Risk

High mid-cap allocation may face liquidity stress during volatility spikes.

Concentration Risk

Concentrated mid-cap holdings vulnerable to earnings misses or competitive pressures.

Specific Strategy Risk

Regulatory changes impacting arbitrage strategies could disrupt alpha generation.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Captures pricing inefficiencies across equity markets through low-risk arbitrage strategies. This approach aims to generate steady returns with minimal correlation to broader markets by exploiting temporary mispricings between derivative instruments and their underlying stocks.

Broader Market View

Market Outlook

Equity markets appear to be in the early stages of a recovery phase, offering an attractive entry point as consumption and earnings normalize. Key drivers such as consumer demand, capex revival, and credit growth are aligning with the strategy's tilt towards consumer, financial services, and technology sectors, though risks like competition and cyclicality persist.

Why This Strategy is Attractive Now

The strategy seems well-positioned for the current environment with exposure to market leaders across consumer cyclicals/defensives, financials, and technology. Its diversification across around 70 holdings, balanced between growth and stability, coupled with a moderate beta and flexibility, suggests a risk-adjusted approach aligned with conditions, differentiating it from generic equity strategies.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their long-term potential.

Why it Makes Sense

In the current market environment, a Quality Growth approach may offer an attractive balance of growth potential and defensive characteristics, as high-quality companies tend to demonstrate resilience during periods of economic uncertainty.

High-Level Investment Process

Sourcing: The strategy appears to focus on identifying companies with sustainable competitive advantages, strong management teams, and attractive growth prospects across various sectors and market capitalizations. Selection: The investment team likely emphasizes companies with consistent profitability, strong balance sheets, and the ability to generate durable cash flows, while also considering valuation metrics to identify potential opportunities. Construction: The portfolio construction process suggests a preference for diversification across sectors and market capitalizations, while maintaining a concentrated exposure to the highest-conviction holdings, which is consistent with a Quality Growth approach.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods23.97%

Consumers22.15%

Technology4.45%

Energy & Infra8.45%

Utilities3.75%

Services9.93%

Financial Services27.3%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Cash Offset For DerivativesUtilities80.09%

Mirae Asset Liquid Dir GrUtilities8.94%

TrepsUtilities5.57%

Mirae Asset Money Market Dir GrUtilities4.95%

Maruti Suzuki India LtdConsumers1.92%

BSE LtdFinancial Services1.34%

Sun Pharmaceuticals Industries LtdServices1.29%

SBI Life Insurance Co LtdFinancial Services1.11%

Shriram Finance LtdFinancial Services1.08%

InterGlobe Aviation LtdCapital Goods0.98%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Jignesh Rao

Mr. Jignesh Rao has experience of 21 years. Manages 6 funds at Mirae Asset Investment Managers (India) Private Limited with an AUM of approximately ₹3,805 Cr Holds a PGDBA degree.

43 years

Combined Team Experience

₹ 11,414 Cr

Assets Under Management

Jigar Shethia

Co-Portfolio Manager

Mr. Jigar Shethia has experience of 20 years. Manages 6 funds at Mirae Asset Investment Managers (India) Private Limited with an AUM of approximately ₹3,805 Cr Holds a B.Com degree.

Krishnpal Yadav

Co-Portfolio Manager

Mr. Krishnpal Yadav has experience of 1 years. Manages 20 funds at Mirae Asset Investment Managers (India) Private Limited with an AUM of approximately ₹3,805 Cr

CW Expert Take

Mirae Asset brings global investment expertise to Indian markets. Their strength lies in thematic research and identifying structural growth trends early. The fund house combines quantitative frameworks with fundamental analysis, creating disciplined yet opportunistic strategies across market caps and asset classes.

Firm Overview

Total AUM₹2,17,680.38 Cr

Investment Philosophy & Approach

Disciplined Approach

Mirae Asset employs a systematic investment process focused on risk management.

Quantitative Analysis

The fund house leverages quantitative models for portfolio construction and optimization.

Long-Term Perspective

Mirae Asset maintains a long-term capital allocation mindset for sustainable returns.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.79%

Exit Load0.25

Regulatory & Tax Information

INF769K01FP7

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)