Standard Chartered MF launches Arbitrage Fund

Mumbai, Nov 14: Standard Chartered Mutual Fund (SCMF) today launched the 'Arbitrage Fund', an open-ended equity scheme that aims to invest in cash and futures across markets.

This new fund offer, opened during the day, will close on November 30, 2006, said an official press release here. Under this scheme, minimum purchase is Rs 10,000 and in multiples of Rs. One. This fund will make the most from the differences across markets by investing in the cash and futures markets.

Considering the price discrepancies that exist at times in the spot and futures markets, the Arbitrage Fund will make purchase securities in the spot market for immediate resale in the futures market to profit from this price spread available at the time of sale.

As such, this fund is best suited for investor's who would like to benefit from a relatively low risk product. Dividends here are tax free and all capital gains over 1 year are totally tax free. This fund will be managed by Mr Rajiv Anand, Head of Investment, Standard Chartered AMC Pvt Ltd. ''Considering the markets at this point in time, the Standard Chartered Arbitrage Fund will help investors generate relatively lower risk returns irrespective of where the index moves. Being an equity oriented fund also makes all dividends and returns above 1 year totally tax free and therefore attractive,'' said Mr Naval Bir Kumar, Managing Director, Standard Chartered AMC.

UNI