UTI Arbitrage Fund(IDCW)

Ticker: mf14642
Decent 66/100

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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

Opportunities
  • Stable returns in volatile markets
  • Diversification of investment portfolio
  • Tax efficiency for long-term investors
  • Professional management of funds
Risks ⚠️
  • Market fluctuations impacting returns
  • Limited growth compared to equities
  • Interest rate changes affecting performance
  • Liquidity risks during market downturns
📊 Stock Investment Checklist (100 Points)
UTI Arbitrage Fund(IDCW) • Updated: 2025-10-01 07:39:35
  • 10
    Business
    High
    The fund operates in a stable sector but lacks a significant competitive moat.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit growth is moderate.
  • 10
    Profitability
    High
    ROE and ROCE are acceptable, but cash flow is inconsistent.
  • 10
    Valuation
    High
    Valuation metrics are in line with peers, but not compelling.
  • 8
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 9
    Governance
    High
    Promoter holding is stable, but some concerns over disclosures.
  • 7
    Drivers
    High
    Growth drivers are present, but execution risks remain.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 66 / 100 • Decent
The UTI Arbitrage Fund shows decent potential with stable growth, but faces challenges in profitability and liquidity.