UTI Arbitrage Fund(IDCW)
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Business Overview
UTI Arbitrage Fund (IDCW) is designed for investors seeking stable returns with lower risk. This fund capitalizes on price discrepancies between the cash and derivatives markets, making it suitable for risk-averse individuals looking to diversify their portfolio. It aims to provide consistent income while minimizing market volatility exposure. With a professional management team, the fund is ideal for both new and seasoned investors looking to enhance their financial growth.
- Stable returns with lower risk
- Ideal for risk-averse investors
- Diversifies investment portfolio
- Capitalizes on market price discrepancies
- Managed by experienced professionals
- Consistent income generation
Investment Thesis
UTI Arbitrage Fund stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuations compared to peers. This combination positions the fund as a compelling investment opportunity for retail investors seeking stability and growth in a dynamic market environment.
- Backed by UTI Asset Management Company, a trusted name in Indian finance.
- Significant growth in digital services enhances operational efficiency and investor engagement.
- Valuations remain attractive compared to similar funds, offering potential for higher returns.
- Focus on arbitrage strategies helps mitigate risks while capitalizing on market inefficiencies.
- Strong historical performance and consistent returns make it a reliable choice for conservative investors.
Opportunity vs Risk
- Stable returns in volatile markets
- Diversification of investment portfolio
- Tax efficiency for long-term investors
- Professional management of funds
- Market fluctuations impacting returns
- Limited growth compared to equities
- Interest rate changes affecting performance
- Liquidity risks during market downturns
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10BusinessHighThe fund operates in a stable sector but lacks a significant competitive moat.
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10GrowthHighConsistent revenue growth observed, but profit growth is moderate.
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10ProfitabilityHighROE and ROCE are acceptable, but cash flow is inconsistent.
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10ValuationHighValuation metrics are in line with peers, but not compelling.
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8BalanceHighDebt levels are manageable, but liquidity could be improved.
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9GovernanceHighPromoter holding is stable, but some concerns over disclosures.
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7DriversHighGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.