NFO Alert: Quant Mutual Fund Launches Quant Arbitrage Fund

Quant Mutual Fund has launched a new open-ended scheme, Quant Arbitrage Fund, to capitalise on arbitrage opportunities in the equity and derivative segments. The New Fund Offer (NFO) opens on March 18, 2025, and closes on March 27, 2025. This scheme falls under the Hybrid: Arbitrage category and aims to generate income and capital appreciation while maintaining a low-risk profile.

Investment Strategy

This scheme aims to generate capital appreciation and income by primarily capitalising on arbitrage opportunities in both the cash and derivative segments of the equity markets, as well as arbitrage within the derivative segment itself. The remaining assets will be invested in debt and money market instruments

Fund Details 

• Fund House: Quant Mutual Fund
• Fund Manager: Sameer Kate
• Benchmark: NIFTY 50 Arbitrage TRI
• Risk Level: Low
• Lock-in Period: None
• Exit Load: 0.25% if redeemed within one month
• Minimum Investment: ₹5,000
• Plans Available: Growth and IDCW (Income Distribution cum Capital Withdrawal)

Quant Arbitrage Fund

Arbitrage funds are generally preferred by risk-averse investors seeking stable returns without exposure to direct equity market fluctuations. Since arbitrage profits arise from mispricing between cash and derivative markets, the fund aims to generate returns while minimising downside risk. Furthermore, the short-term exit load of just 0.25% ensures liquidity for investors.

Conclusion

The investment strategy of this scheme is to generate both capital appreciation and income. This will be achieved mainly through arbitrage trading in the equity market’s cash and derivative segments, including opportunities solely within derivatives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments in the securities market are subject to market risks, read all the related documents carefully before investing.