NFO Alert: TRUST Mutual Fund Launches Arbitrage Fund

TRUST Mutual Fund has announced the launch of its new scheme, the TRUSTMF Arbitrage Fund. The New Fund Offer (NFO) will be open for subscription from August 18, 2025, to August 22, 2025. Units will be offered at ₹10 each, and the fund will reopen for continuous purchase and redemption within five business days after allotment.

Fund Objective

The scheme aims to generate capital appreciation and income mainly by investing in arbitrage opportunities available between the cash and derivatives segments of the equity market. It may also make use of arbitrage opportunities within the derivatives segment and invest the remaining portion in debt and money market instruments. 

The scheme does not guarantee the achievement of its investment objective.

Asset Allocation

Under normal conditions, the fund will invest 65-100% of its portfolio in equities and equity-related instruments, including derivatives, and 0-35% in debt and money market instruments. During defensive market conditions, the allocation to debt can increase to 100%. The scheme will be benchmarked against the Nifty 50 Arbitrage Index, which also carries a low-risk profile.

Key Details

• Category: Hybrid – Arbitrage Fund
• Type: Open-ended scheme
• Minimum Investment: ₹1,000; additional investments in multiples of ₹1,000
• SIP Options: Weekly, fortnightly, monthly, and quarterly
• Exit Load: 0.25% if redeemed within seven days of allotment; nil thereafter
• Plans Available: Regular and Direct, both with Growth option only

Fund Management

The scheme will be managed by Mihir Vora, Chief Investment Officer at TRUST Asset Management, with over 30 years of experience, and Sachin Parekh, who has over 2 decades of experience in financial markets.

Read more: Indian Mutual Fund Industry Crosses ₹74 Lakh Crore in AUM!

Conclusion

The TRUSTMF Arbitrage Fund provides an option for investors looking at arbitrage strategies through an open-ended format. With daily NAV calculation and low-risk categorisation, it offers flexibility in subscription and redemption within SEBI timelines.

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 are subject to market risks, read all the related documents carefully before investing.