Looking at the stock market and how volatile it is makes many go bonkers, but at the same time, the expectation to have returns just like the market is hopeful.
The market and all its related investment opportunities are like the ocean, it will probably take an entire lifetime to not only learn about it but to start earning returns from it.
Nobody ever said you need to be market smart to make money. Instead what I have learnt from my past experiences, is that you need to invest smartly or consult a professional to do it for you.
Investing smartly or getting professional help not only saves your precious time but also ensures that you have created a wealth-generating portfolio, a goal one must have always.
I am sure you have wondered why there are different prices of the same shares in the stock market and if one can buy in one market and sell it at a higher price in another market and make a profit.
Well, that is exactly what arbitrage opportunity is. Trading in stocks and mutual funds are getting a tad old and the new investment option we need to look at is arbitrage opportunities.
With the ongoing Covid-19 pandemic and the grave uncertainty that we live in which has been reflecting in the markets nationally and globally, the Mahindra Manulife Arbitrage Yojana arbitrage opportunity investment schemes is here to help you with your increasing short term needs with relatively low risk and tax-efficient returns.
Mr Ashutosh Bishnoi, MD and CEO, Mahindra Manulife Investment Management Private Limited, said, “The investor participation in arbitrage market over years have seen a steady rise due to immense underlying opportunities available. Mahindra Manulife Arbitrage Yojana is suitable for Investors who are seeking income through arbitrage opportunities between cash and derivative market. The scheme will use several strategies to identify arbitrage opportunities across market cycles and offer returns at relatively lower volatility and lower risk.”
Under normal circumstances, there would be a maximum investment in equity as compared to debt/money market securities. However, in defensive circumstance, the strategy would be between 0-65% in equity, between 35-100% in debt/money market securities and up to 10% in units issued by REITs & InvITs.
The fund is currently available for investing from 12th August to 19th August 2020 with a minimum application or additional purchase of INR 1000 and in multiples of INR 1 thereafter. Minimum switch-in above this threshold is in multiples of INR 0.01 and minimum redemption / switch-out is this threshold amount or 100 units, whichever is lower.
The fund would further reopen for continuous sale and purchase from 25th August 2020. An exit load of 0.25% would be payable if the units are redeemed or switched out on or before completion of 30 days.
The fund is being managed by Srinivas Ramamurthy – Fund Manager (Equity) and Rahul Pal – Head (Fixed Income) both of whom come from great educational backgrounds and with years of fund management experience.
If you are looking at buying something for your self in the near future and are confused how you can reach that goal with absolutely little or no knowledge about the stock market, you may want to look at investing in the Mahindra Manulife Arbitrage Yojana.