Helios Arbitrage Fund - Regular (G)

Investment Approach and Risk Control The Scheme will be managed actively in line with the investment objectives and asset allocation of the Scheme. The Scheme will endeavor to invest in arbitrage opportunities between spot and futures prices of exchange traded equities and the arbitrage opportunities available within the derivative segment as per the investment objective and the asset allocation pattern of the Scheme. The Scheme shall at all times endeavor to take advantage of the arbitrage opportunities available due to difference in pricing emerging between cash market and the derivatives market. However, as the Scheme wants to avail of the benefit granted under the Income-tax Act to equity-oriented funds as defined under Section 115T, the Scheme shall, in the absence of adequate income earning arbitrage opportunities, invest only in equity shares of domestic companies. Alternatively, if suitable arbitrage opportunities are not available in the opinion of the Fund Manager, the Scheme may hedge the equity portfolio by using derivatives or may invest in short-term debt / money market instruments. The Fund Manager will evaluate the difference between the price of a stock in the futures market and in the spot market. If the price of a stock in the futures market is higher than in the spot market, after adjusting for costs and taxes the scheme shall buy the stock in the spot market and sell the same stock in equal quantity in the futures market, simultaneously. The Scheme will endeavor to build similar market neutral positions that offer an arbitrage potential for e.g. buying the basket of index constituents in the cash or futures segment and selling the corresponding index futures, etc. The Scheme would also look to avail of opportunities between one futures contract and another. The Scheme may deploy one or more of the below mentioned derivative Strategies to the extend they are in line with the investment objective of the Scheme.