JM Financial Mutual Fund launches 'Arbitrage Advantage Fund'

Mumbai, May 31 (UNI) JM Financial Mutual Fund today announced the launch of its 'JM Arbitrage Advantage Fund', an open-ended equity oriented interval scheme.

The primary investment objective of the scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments, an official release issued here today said.

The New Fund Offer period for this fund will be from June one to June 30. The scheme will not have any entry load.

Speaking on the occasion, JM Financial Mutual Fund's CEO&COO Jimmy Patel said, ''The change in regulations now allow the fund manager greater freedom to deploy more funds than before, for taking arbitrage positions thus giving an opportunity for better returns to the investor. With our earlier fund only 50 per cent of the funds under management were available for deployment for arbitrage. In the JM Arbitrage Advantage Fund (AAF), there is greater flexibility for the fund manager to deploy funds for arbitrage.'' JM AAF will offer the investors tax benefits related to an equity-oriented fund, viz no dividend distribution tax and no long-term capital gains tax if held for more than one year. At the same time, it offers the liquidity of an interval fund.

UNI SN MJ AG1855