According to a release from the fund house, ITI Arbitrage Fund will invest a minimum of 65 per cent in arbitrage opportunities available in the equity markets and the balance in debt securities with a maturity of less than 91 days.
The fund will be managed by George Heber Joseph and Milan Mody. The performance of the scheme will be benchmarked against Nifty 50 Arbitrage Index.
“ITI Arbitrage Fund aims to generate returns by investing in arbitrage opportunities available in the market and providing relatively risk-free returns without any directional equity risk. The fund plans to take offsetting positions in cash and futures markets without any un-hedged or open exposures. This fund is suitable for investors with a short to medium term investment horizon and are looking for an alternate option to bank fixed deposits or liquid funds,” said George Heber Joseph, CEO & CIO, ITI Mutual Fund.
The minimum investment in ITI Arbitrage Fund fund will be Rs 5,000 and in multiples of Rs 1 thereafter.