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What is an Arbitrage Mutual Fund?

An Arbitrage Mutual Fund intends to earn a profit by taking advantage of price discrepancies in the cash and derivatives markets. It purchases stocks in the cash market where the price is lower and sells the same in the futures market where the price is higher, earning a profit on the price differential. Low-risk and best suited for investors seeking returns in turbulent market conditions, arbitrage funds represent a safer bet than equity funds. Curious to know whether an arbitrage fund suits your objectives? Contact us for expert guidance.

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What is an Arbitrage Mutual Fund?

An Arbitrage Mutual Fund intends to earn a profit by taking advantage of price discrepancies in the cash and derivatives markets. It purchases stocks in the cash market where the price is lower and sells the same in the futures market where the price is higher, earning a profit on the price differential. Low-risk and best suited for investors seeking returns in turbulent market conditions, arbitrage funds represent a safer bet than equity funds. Curious to know whether an arbitrage fund suits your objectives? Contact us for expert guidance.

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