HDFC Arbitrage Fund(Q-IDCW)

Ticker: mf14255
Decent 48/100

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Business Overview

HDFC Arbitrage Fund (Q-IDCW) is a mutual fund designed for investors seeking to capitalize on market inefficiencies while minimizing risk. Ideal for conservative investors looking for stable returns, this fund employs a strategy of arbitrage between cash and derivatives markets. It aims to provide a balanced approach to wealth creation with lower volatility compared to equity funds.

  • Designed for risk-averse investors
  • Focuses on capitalizing market inefficiencies
  • Offers potential for stable returns
  • Lower volatility compared to traditional equity funds
  • Managed by experienced professionals
  • Suitable for short to medium-term investment

Investment Thesis

HDFC Arbitrage Fund stands out due to its strong promoter group and credibility, ensuring 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 stability and returns.

  • Backed by HDFC's strong promoter group, ensuring trust and reliability.
  • Capitalizes on the expanding digital services market, promising growth.
  • Attractive valuation relative to peer funds, enhancing investment appeal.
  • Focus on arbitrage opportunities provides stability in volatile markets.
  • Consistent performance history reinforces confidence among retail investors.

Peer Perspective

HDFC Arbitrage Fund trades at a slight premium compared to peers like ICICI Prudential Arbitrage Fund and Kotak Arbitrage Fund. A rerating could occur if margin stability is maintained amid fluctuating market conditions.
📊 Stock Investment Checklist (100 Points)
HDFC Arbitrage Fund(Q-IDCW) • Updated: 2025-10-01 02:50:55
  • 10
    Business
    High
    The fund operates in a stable sector with a clear model, but lacks a significant competitive moat.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit growth has been moderate.
  • 10
    Profitability
    High
    ROE and ROCE are acceptable, but OCF is not consistently higher than net profit.
  • 8
    Valuation
    High
    Valuation metrics are in line with peers, but offer limited upside.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 9
    Governance
    High
    Promoter holding is strong, with minimal pledging and good disclosures.
  • 10
    Drivers
    High
    Growth drivers are present, but execution risks remain.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
The HDFC Arbitrage Fund presents a decent investment opportunity with stable growth and acceptable governance, but faces challenges in profitability and valuation.