SEBI Nod Pave Way To Wealth Company Mutual Fund's Arbitrage Launch

Mumbai, Aug 26: Wealth Company Mutual Fund has got a go-ahead from the Securities and Exchange Board of India (SEBI) to launch the Wealth Company Arbitrage Fund, an open-ended plan to generate arbitrage gains from cash and derivative markets at low risk.

Scheme Highlights

The new fund will look to earn returns in the form of arbitrage transactions and preserve liquidity by investing a portion of its portfolio in debt and money market securities. The scheme has a face value of ₹10 per unit at the time of New Fund Offer (NFO), where the minimum investment amount is ₹1,000 and in multiples of ₹1 thereafter. Investors have the option for SIPs of ₹250 with weekly, fortnightly, monthly, and quarterly frequency.

The scheme’s benchmark will be the Nifty 50 Arbitrage Index (TRI). Exit load of 0.25% will be levied in case units are withdrawn within seven days, and no charges will be levied otherwise.

Asset Allocation Strategy

During regular market conditions, the fund will invest between 65–100% in equities and allied instruments, 0–35% in debt and money market instruments, and not more than 10% in REITs and InvITs. During defensive conditions, the equity allocation may even fall to zero as debt and money market instruments would absorb a larger share. This adjustable basis should enable the fund to weather fluctuating market conditions while maintaining low volatility.

Experienced Fund Managers

The scheme will be managed by both Aparna Shanker, who boasts more than three decades of experience in the mutual fund segment, and Rouhak Shah, who has 16 years of experience in equity trading. Both their combined experience is likely to lend strength to the arbitrage and risk management processes of the fund.

Target Investors

Placed as a safe investment product, the Wealth Company Arbitrage Fund is designed to cater to investors who look for short-term income with limited volatility. Through the use of arbitrage opportunities combined with liquidity using fixed-income securities, the scheme provides a blend of safety and moderate returns.

REF: https://www.sebi.gov.in/filings/mutual-funds/aug-2025/the-wealth-company-arbitrage-fund_96299.html

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