Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns. The returns are dependent on the volatility of the asset. These funds are hybrid in nature as they have the provision of investing a sizeable portion of the portfolio in debt markets. These funds capitalize on the market inefficiencies and generate profits for the investors. For income tax purpose, the arbitrage mutual funds are classified as Equity oriented funds.
Invest in Best Hybrid Arbitrage Funds
Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns. The returns are dependent on the volatility of the asset. These funds are hybrid in nature as they have the provision of investing a sizeable portion of the portfolio in debt markets. These funds capitalize on the market inefficiencies and generate profits for the investors. For income tax purpose, the arbitrage mutual funds are classified as Equity oriented funds.
Arbitrage funds are the panacea for low risk taking investors. In a situation of high and persistent volatility, arbitrage funds provide investors a safe avenue to park their hard earned money.
Time Horizon of at least 3-5 years
You can click on the Arbitrage Hybrid Funds link in Jama.co.in and choose the desired fund. You can also take your free risk profile assessment which then advises you on the percentage asset allocation you should have inArbitrage Hybrid Funds. Click on invest button from there and continue to make the investment.
Invest only in direct plans of small cap funds and take the advice of a SEBI Registered Investment advisor to invest in the right funds.