Tata Arbitrage Reg Gr

25%

Commodities

India Debt Liquid Market

Liquid

Others

Emotionally driven 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

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-equity spread trading, deploying capital across financials and industrials to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient downside protection characteristics, outperforming its benchmark in 10 out of the past 12 years.

Differentiated Construction

The fund's differentiated construction, with a bias towards large-cap financials and energy stocks like HDFC Bank and Reliance Industries, sets it apart from peers.

Defensive Positioning

With a high cash allocation of 94.49% and low equity exposure of -0.36%, the fund is well-positioned to navigate potential 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

+5.7% vs +9.9% benchmarkSince Inception

+6.6% vs +5.1% benchmark3Y Annualized

+6.0% vs +5.2% benchmark5Y Annualized

Tata Arbitrage Reg Gr

Benchmark Index

Benchmark Performance Comparison

Tata Arbitrage Fund

FD Returns

Risk Profile

Standard Deviation0.7%

Sharpe Ratio0.39

Detailed Risks

Market Risk

Prolonged economic slowdown could reduce arbitrage opportunities, mitigated by diversification.

Liquidity Risk

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

Concentration Risk

Concentrated mid-cap holdings face earnings risks, mitigated by position sizing.

Specific Strategy Risk

Regulatory changes impacting arbitrage strategies could disrupt execution.

Strategy Details

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

Core Investment Theme

Captures opportunities from pricing inefficiencies across asset classes. This strategy aims to generate low-risk returns by exploiting temporary price dislocations between cash and derivative markets. The impact is a steady income stream with low correlation to broader equity markets, providing valuable portfolio diversification.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with attractive valuations following the recent correction. A consumption recovery, earnings normalization, and capex revival are expected to drive performance, particularly in consumer, financial services, and industrial sectors. However, risks such as margin pressures and cyclicality warrant a balanced approach.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment, with exposure to consumer cyclicals, financials, and technology leaders. Its diversification across approximately 70 holdings, coupled with a moderate beta and flexibility, suggests a risk-adjusted approach aligned with the mid-cycle dynamics. The balanced mix of growth and stability appears differentiated from generic strategies.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

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

High-Level Investment Process

Sourcing: The strategy appears to seek companies with sustainable competitive advantages, strong balance sheets, and attractive growth runways, often favoring market leaders within secular growth areas. Selection: The process suggests a preference for businesses demonstrating durable pricing power, high returns on capital, and the ability to self-fund growth initiatives, while maintaining a disciplined valuation approach. Construction: Portfolio construction is consistent with a focus on risk management through diversification across sectors and market capitalizations, with an emphasis on limiting factor, sector, and stock-specific risks.

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 Derivatives66.38%

Tata Money Market Dir Gr11.79%

HDFC Bank LtdFinancial Services7.80%

Axis Bank LtdFinancial Services2.84%

Small Industries Development Bank of India1.99%

Reliance Industries LtdEnergy & Infra1.89%

Bharti Airtel LtdServices1.67%

Vodafone Idea LtdServices1.60%

National Bank For Agriculture And Rural Development1.46%

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

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.

19 years

Combined Team Experience

₹ 29,566 Cr

Assets Under Management

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.

Investment Philosophy & Approach

Disciplined Approach

Tata Asset Management follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in the investment process through robust controls.

Long-Term Perspective

The fund house adopts 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)