Old Bridge Mutual Fund Gets SEBI Nod for Launch of Old Bridge Arbitrage Fund

Mumbai, October 14, 2025: Old Bridge Mutual Fund has received approval from the Securities and Exchange Board of India (SEBI) to launch the Old Bridge Arbitrage Fund, an open-ended scheme to earn short-term income by exploiting arbitrage opportunities in the equity, cash and derivatives markets. This is the fund house’s newest product targeted at low-volatility, market-neutral return-seeking investors.

Located in Bandra Kurla Complex, Mumbai, Old Bridge Mutual Fund is sponsored by Old Bridge Asset Management Pvt. Ltd. The company is managing the Old Bridge Focused Fund. They are launching this arbitrage fund as a new investment product. Through this launch, the fund house is demonstrating its commitment to providing risk-managed investments focused on conservative investors seeking safety and a steady income while limiting their market exposure.

Scheme Overview And Investment Objective

Old Bridge Arbitrage Fund is designed to generate income by investing in equity spot and futures segments, while maintaining a balanced scheme with debt and money market securities. The hybrid character of the fund makes it stable and liquid even in times of market volatility. Investors can open an account with a minimum application of ₹5,000 and make subsequent purchases of ₹1,000 each, resulting in a face value of ₹10 per unit. The fund will be benchmarked against the Nifty 50 Arbitrage Total Return Index (TRI), providing growth as well as IDCW (Income Distribution cum Capital Withdrawal) options under Regular and Direct plans.

Fund Management And Strategy

Long-time fund manager Kenneth Joseph Andrade, Founder of Old Bridge Capital Management, will lead the fund. With over 30 years of experience in portfolio management and equity research, Andrade has extensive expertise in risk-managed investing. The fund intends to utilize several types of arbitrage strategies, including cash-futures arbitrage, reverse arbitrage, and corporate event-driven trades linked to corporate actions such as mergers, buybacks, or demergers. Additionally, short-term debt instruments will be included in the fund, along with units of REITs and InvITs, to provide support during the tested timeframe.

Asset Allocation And Risk Management

The goal of the program is to provide at least 65% exposure to equities and related instruments to exploit arbitrage opportunities. This is in contrast to a possible maximum exposure of approximately 35% in debt and money market instruments for liquidity. Investments in REITs and InvITs are permitted up to 10%. The program will seek to follow a prudent hedging strategy designed to limit volatility and protect client capital. The Moderate to High risk profile reflects a balanced exposure to equities and derivatives against fixed income investments.

Liquidity And Redemption Features

The Old Bridge Arbitrage Fund ensures daily liquidity, allowing investors to subscribe or redeem units on all business days at NAV-linked prices. Net Asset Values (NAVs) will be published on both the AMC’s website and AMFI’s portal by 11:00 p.m. daily. Redemption proceeds will be credited to investors within three business days, making it a convenient option for those seeking quick access to their funds.

Investor Facilities And Access

The fund is flexible with the option of Systematic Investment Plans (SIP); a ₹2,500 minimum investment is required across six installments, etc. Investors can also utilize systematic transfer plans (STP) and systematic withdrawal plans (SWP) to automate their investment flows. Investors can switch between schemes/plans; flexibility is an advantage of this investment vehicle. Investors can transact through several channels, including the AMC’s website, KFin Technologies, and the MF Utility (MFU) platform.

Outlook

With the SEBI approval, Old Bridge Mutual Fund is poised to strengthen its presence in the hybrid investment space. The new arbitrage fund could attract investors seeking stability, liquidity, and consistent short-term returns amid uncertain market conditions.

REF: https://www.sebi.gov.in/sebi_data/attachdocs/oct-2025/1760416117037.pdf

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