JM Arbitrage Fund (H-IDCW) is a mutual fund designed for investors seeking stable returns with lower risk. This fund capitalizes on price discrepancies between equity and derivatives markets, making it ideal for conservative investors looking for a balanced approach to wealth creation. With a focus on capital preservation and steady income, it is suitable for those who want to diversify their portfolio without high volatility.

Designed for conservative investors
Focuses on capital preservation
Utilizes arbitrage opportunities
Offers potential for steady income
Ideal for portfolio diversification

Investment Thesis

JM Arbitrage Fund (H-IDCW) stands out due to its strong promoter credibility, which instills investor confidence. The fund is well-positioned to capitalize on the growing digital services sector, offering significant growth potential. Additionally, its attractive valuation compared to peers makes it a compelling choice for retail investors seeking stable returns.

Strong backing from a reputable promoter group enhances trust and reliability.
Digital services sector poised for robust growth, providing a favorable investment environment.
Attractive valuation relative to peers, presenting a unique buying opportunity.
Focus on arbitrage strategies mitigates risk while aiming for consistent returns.
Proven track record of performance reinforces confidence in fund management.

Opportunity vs Risk

Opportunities

Strong historical performance
Diversification benefits
Potential for high returns
Experienced fund management
Growing retail investor interest

Risks ⚠️

Market volatility
Regulatory changes
Interest rate fluctuations
Limited liquidity
High expense ratios

Peer Perspective

JM Arbitrage Fund trades at a slight premium compared to peers like HDFC Arbitrage Fund and ICICI Prudential Arbitrage Fund. A rerating could occur if it achieves consistent margin stability and improved risk-adjusted returns.

📊 Stock Investment Checklist (100 Points)

JM Arbitrage Fund(H-IDCW) • Updated: 2025-10-01 06:24:20

10

Business
High

The fund operates in a stable sector but lacks a clear competitive advantage.
10

Growth
High

Consistent revenue growth observed, but profit margins are volatile.
10

Profitability
High

ROE and ROCE are decent, but cash flow is inconsistent.
8

Valuation
High

Valuation metrics are slightly above peers, indicating potential overvaluation.
7

Balance
High

Debt levels are manageable, but liquidity could be improved.
6

Governance
Good

Promoter holding is stable, but there are concerns over transparency.
5

Drivers
Good

Limited growth catalysts identified, with execution risks present.
5

Technicals
Good

Market sentiment is neutral, with low liquidity.

Final Score & Verdict

Score 68 / 100 • Decent

The JM Arbitrage Fund shows decent potential but is not without its risks. Investors should be cautious and consider market conditions.