The Wealth Company Mutual Fund Files Draft With SEBI for Arbitrage Fund

The Wealth Company Mutual Fund has submitted draft papers for the launch of its new scheme, the Wealth Company Arbitrage Fund. The fund is structured as an open-ended arbitrage scheme and proposes to offer units at ₹10 each during the New Fund Offer (NFO).

Investment Objective

The stated aim of the scheme is to generate income by making use of arbitrage opportunities between the cash and derivatives segments of the equity market. The balance of the portfolio will be placed in debt and money market instruments. There is no assurance that the investment objective will be met.

Asset Allocation

Under normal circumstances, equity and related instruments will form 65-100% of the portfolio. Debt and money market securities may form up to 35%, while exposure to REITs and InvITs can go up to 10%. In defensive market conditions, debt allocation could rise to 100%.

Benchmark and Risk Level

The scheme will be benchmarked against the Nifty 50 Arbitrage Index (TRI). According to the product label, the fund is placed in the low-risk category. Subscription and redemption will be available on all business days. Redemption proceeds are required to be dispatched within three working days of a valid request.

Read more: Top Mutual Funds for September 2025 That Delivered Highest Returns in the Last 10 Years!

Plans and Options

The fund will offer Regular and Direct Plans, each with Growth and IDCW (payout and reinvestment) options. The minimum investment during the NFO will be ₹1,000, with systematic investment options starting at ₹250 per instalment.

There will be no entry load. An exit load of 0.25% will apply if units are redeemed within seven days of allotment. No exit load will be charged after this period.

Fund Management

The scheme will be jointly managed by Aparna Shanker, who has over 30 years of industry experience, and Rouhak Shah, who has worked in trading and equity markets for over 16 years.

Conclusion

With the draft papers filed, the Wealth Company Arbitrage Fund moves a step closer to launch. Final details will be confirmed after SEBI’s approval.

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.