Tata Arbitrage Gr

All Cap

Commodities

India Debt Liquid Market

Liquid

Others

Emotionally driven

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

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

What This Strategy Does

Tata 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 and industrials to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated benchmark-relative outperformance across market cycles, delivering earnings resilience and downside protection characteristics.

Differentiated Construction

The fund's investment process employs a distinct weighting bias towards large-cap financials and industrials, expressing conviction through overweights in HDFC Bank and Reliance Industries.

Defensive Positioning

With a high cash allocation and low equity beta, the fund is positioned to navigate potential earnings downgrades or multiple compression risks while participating in any upside from policy catalysts.

Performance and Risk Analysis

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

Fund Performance

0.0% AnnuallyAlpha

+5.7% vs +10.1% benchmarkSince Inception

+6.6% vs +5.6% benchmark3Y Annualized

+6.1% vs +4.6% benchmark5Y Annualized

Tata Arbitrage Gr

Benchmark Index

Benchmark Performance Comparison

Tata Arbitrage Fund

FD Returns

Given the product’s limited performance history, the assessment considers the fund house’s track record and the historical performance of comparable strategies managed by the same fund house, which follow similar investment approaches. Such comparisons provide historical context only and do not represent the performance of the new product or indicate its future returns.

Risk Profile

Standard Deviation0.7%

Sharpe Ratio0.39

Detailed Risks

Market Risk

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

Liquidity Risk

High mid-cap allocation risks liquidity stress, mitigated by large-cap buffer.

Concentration Risk

Concentrated mid-cap holdings vulnerable to earnings misses, mitigated by diversification.

Specific Strategy Risk

Regulatory changes impacting arbitrage strategies could disrupt execution and returns.

Strategy Details

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

Core Investment Theme

Captures pricing inefficiencies across asset classes through arbitrage strategies. This approach aims to generate low-risk returns by exploiting temporary mispricing between related securities like stocks and futures. The impact is a steady income stream with minimal correlation to broader markets.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent correction, presenting an opportune entry point. Macro tailwinds such as consumption revival, earnings normalization, and capex growth are aligning with the strategy's tilt towards consumer, financial, and industrial sectors. While competitive pressures and cyclicality pose risks, the current backdrop seems conducive.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the evolving landscape, with exposure to market leaders across consumer cyclicals, defensives, financials, and technology. Its balanced approach, combining growth prospects and defensive qualities through diversification across around 70 holdings, could offer risk-adjusted participation. The moderate beta and flexibility to adapt suggest alignment with the present market dynamics.

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 prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can provide exposure to companies with resilient business models, pricing power, and the ability to compound shareholder value through cycles.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations, favoring those with sustainable competitive advantages, strong balance sheets, and attractive growth runways. Selection: The selection process suggests a preference for companies with durable pricing power, high returns on capital, and the ability to reinvest cash flows at incrementally higher rates of return. Construction: Portfolio construction is consistent with a focus on risk management through diversification across sectors and individual positions, while maintaining an overweight to quality growth opportunities.

Portfolio Holdings Overview

SectoralAllocation

Energy & Infra8.83%

Services11.86%

Financial Services40.65%

Technology0.98%

Utilities6.37%

Capital Goods21%

Consumers10.32%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Cash Offset For DerivativesUtilities66.38%

Tata Money Market Dir GrUtilities11.79%

HDFC Bank LtdFinancial Services7.80%

Axis Bank LtdFinancial Services2.84%

Small Industries Development Bank of IndiaUtilities1.99%

Reliance Industries LtdEnergy & Infra1.89%

Bharti Airtel LtdServices1.67%

Vodafone Idea LtdServices1.60%

National Bank For Agriculture And Rural DevelopmentUtilities1.46%

Steel Authority Of India LtdCapital Goods1.42%

Fund House Management

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

Fund Manager Track Record

Sailesh Jain

Lead Portfolio Manager

Mr. Sailesh Jain has experience of 19 years. Manages 52 funds at Tata Asset Management Pvt Ltd with an AUM of approximately ₹29,566 Cr Holds a M.B.A. degree.

CW Expert Take

Tata AMC reflects the group's values-based approach to business. Their investment process emphasizes ESG integration and governance quality alongside financial metrics. The fund house takes measured positions, avoiding excessive concentration while maintaining conviction in quality franchises across equity and credit portfolios.

19 years

Combined Team Experience

₹ 29,566 Cr

Assets Under Management

Firm Overview

AMCTata Asset Management Pvt Ltd

Investment Professionals49+

Global Offices250 Cities

Investment Philosophy & Approach

Disciplined Approach

Tata Asset Management follows a disciplined investment approach focused on risk management.

Rigorous Research

Extensive research underpins portfolio construction to identify attractive investment opportunities.

Long-Term Perspective

Tata AMC maintains a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)2.38%

Exit Load0.25

Regulatory & Tax Information

INF277K015Q7

ISIN

DailyDealing Frequency

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

STCG | <1Year 20%%

Tax Implications (India)