Mirae Asset Nifty 200 Alpha 30 ETF · NSE:ALPHAETF
Mirae Asset Nifty 200 Alpha 30 ETF — Mirae Asset Arbitrage Fund — Investor Presentation (June 2021)
28 slides from Mirae Asset Nifty 200 Alpha 30 ETF's investor presentation, June 2021
Slide 1: Mirae Asset Arbitrage Fund
MIRAE ASSET ARBITRAGE FUND (An open ended scheme investing in arbitrage opportunities) June -2021
Slide 2: What is Arbitrage?
What is Arbitrage?
Slide 3: What is Arbitrage?
What is Arbitrage? • Arbitrage is taking advantage of a price difference between two or more markets. • Profit is earned by selling and buying same product at different rates in different markets. 2| Mirae Asset Investment Managers
Slide 4: What are Arbitrage Funds?
What are Arbitrage Funds? Arbitrage Funds are Equity Funds which takes advantage of market volatility. The Fund tend to generate return by finding price difference of the same security in two markets and capitalizing on it. In a situation of high and persistent volatility, these funds provide invest
Slide 5: What makes Arbitrage Risk Free?
What makes Arbitrage Risk Free? Arbitrage is simultaneous buying and selling the same underlying security or its derivatives in different market segments to make risk free profits. For Illustration Buy a stock at Rs 100 and sell the 1 month future of the same at Rs. 101. At the end of Month Stock Pr
Slide 6: Example of Arbitrage Strategy
Example of Arbitrage Strategy
Slide 7: 1. Exchange arbitrage
1. Exchange arbitrage Exchange arbitrage is taking advantage price difference of the same security is different in two stock exchanges. For Instance NSE BSE Price of ABC Rs. 100 Rs. 101 share Action Buy Sell Profit* Rs 1 (101-100) *Excludes all costs 6| Mirae Asset Investment Managers
Slide 8: 2. Cash and Carry Arbitrage
2. Cash and Carry Arbitrage Cash and Carry Arbitrage is taking advantage of price difference of the same security in cash market and current future series of same security. It is the most common arbitrage strategy used by Arbitrage mutual funds. For Instance Scenario Analysis of Cash and Carry Arbit
Slide 9: Cash and Carry Arbitrage explained
Cash and Carry Arbitrage explained By buying the cash market and selling in the F&O market one will lock-in the profits irrespective of the price movement of the security because on expiry of the future contract (last Thursday of the month) the cash price and future price will converge. Above is onl
Slide 10: 3. Index and basket of stocks arbitrage
3. Index and basket of stocks arbitrage Index and basket of stocks arbitrage is similar to Cash and carry arbitrage, the only difference is that instead of a single stock here the arbitrage is for the index. For Instance Cash Market F & O Market Stocks constituting Nifty 50 Security Index in the sam
Slide 11: 4. Corporate Driven Arbitrage
4. Corporate Driven Arbitrage Rights issue: This is announced for a company’s existing investors when it needs more capital. The company gives an option or ‘rights’ to an existing investor to buy new shares at a discounted price during a certain period. This offers an arbitrage opportunity as the in
Slide 12: Advantages of Arbitrage Fund
Advantages of Arbitrage Fund
Slide 13: Why Invest in Arbitrage Fund?
Why Invest in Arbitrage Fund? Equity portfolio Simultaneous Being As arbitrage Arbitrage is completely trades in the classified as funds have the funds have hedged hence same security an Equity ability to provided there will be across Scheme, it provide stable, stable returns minimal risk in exchang
Slide 14: Things to know before investing
Things to know before investing Risk and Return Goal of Investment Investment Horizon • Since there are no open • These funds are apt for short • Investors can look for positions, arbitrage is safer to medium term goal based investment horizon of any time despite being equity oriented investment. ab
Slide 15: Mirae Asset Arbitrage Fund
MIRAE ASSET ARBITRAGE FUND (An open ended scheme investing in arbitrage opportunities)
Slide 16: Portfolio Composition
Portfolio Composition Typical composition of portfolio will be: Upto 10% 15-25% Arbitrage Trade Fixed deposit or Margin money Debt and money market including cash and cash equivalent 65% - 75% As per Income Tax Act, the average of the month’s opening and closing equity exposure for the past 12 month
Slide 17: Our Investment Strategy
Our Investment Strategy Invest predominantly in completely hedged arbitrage opportunities (simultaneous transactions of a long position in cash and exactly short position in futures) A small portion will be invested in other arbitrage opportunities (corporate drive, event driven) Aims to provide rel
Slide 18: Key Strategies of fund
Key Strategies of fund Normally the position is held till the expiry of futures contract when the offsetting position is converged and profit is locked. Cash and carry arbitrage Index arbitrage However if price converges before expiry we can close the position and take some other new position, if av
Slide 19: Where can the Fund Invest
Where can the Fund Invest Investment Asset Type decision Arbitrage Opportunities Yes Margin Fixed Deposits Yes Out-right Equity Exposures No Equity IPO No Debt & Money Market Instruments Yes Credit Risk Low Duration Risk Low 18 | Mirae Asset Investment Managers
Slide 20: Historic Portfolio Composition
Historic Portfolio Composition Historic Portfolio composition of Mirae Asset Arbitrage Fund 100.00 90.00 80.00 70.00 60.00 50.00 40.00 69.81 70.24 69.18 67.90 72.66 68.33 69.18 66.59 67.31 67.33 65.83 30.00 20.00 10.00 0.00 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21
Slide 21: Historic Spreads in Mirae Arbitrage Fund
Historic Spreads in Mirae Arbitrage Fund Month on Month Arbitrage Spreads 60 56 54 50 47 42 42 40 38 37 33 34 31 30 27 20 10 0 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Spreads in the Arbitrage Fund is rising in recent past and they are expected to rise in future.
Slide 22: Alternative to Debt Funds
Alternative to Debt Funds Category Average Returns 5.00 4.67 4.72 4.50 4.14 4.00 3.59 3.50 3.21 3.28 3.33 3.24 3.33 3.17 3.11 3.08 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1 Month 3 Month 6 Month 1 Year Arbitrage Funds Overnight Funds Liquid Funds Source: CRISIL Research, 9th June 2021 Returns for less th
Slide 23: Better Post-tax Returns
Better Post-tax Returns CRISIL Liquid Arbitrage funds Fund Index Amount Invested 1,00,00,000 1,00,00,000 1 years Returns 3.59% 3.77% Capital gain 35,900 37,700 Tax Paid 15% 30% Tax Paid (Value) 5,385 11,310 Post tax Value 10,30,515 10,26,390 22 | Above is for illustration purpose. Consult your tax c
Slide 24: Opportunity across market scenarios
Opportunity across market scenarios Arbitrage funds performance across market phases Nifty 50 Phases Arbitrage funds Index Sub-prime crisis (January 2008-March 2009) 8.00 -43.42 Sharp bounce back post sub-prime crisis (April 2009-December 2010) 5.17 48.77 European crisis (January 2011-June 2013) 8.6
Slide 25: Who should Invest
Who should Invest Looking for 1 + -6 Looking for tax Low risk- No Looking for Low months Investment efficient returns directional exposure volatility in returns in equity 24 | Mirae Asset Investment Managers
Slide 26: Mirae Asset Arbitrage Fund
Mirae Asset Arbitrage Fund Plans Minimum Investment Amount Fund Manager – Equity portion Regular and Direct Plan with Rs. 5,000/- and in multiples of Growth and Dividend Option 1/- thereafter. (Payout & Re-investment) Entry Load Exit Load Mr. Jigar Shethia 0.25% if redeemed or switched Nil out withi
Slide 27: Product Label and Disclaimer
Product Label and Disclaimer Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited. The information contained in this document is compiled fro
Slide 28: Mirae Asset Global Investments
J MIRAE ASSET Global Investments MIRAE ASSET - WE LIVE OUR INVESTMENTS
Mirae Asset Arbitrage Fund — Investor Presentation (June 2021) on 6ix