Concept Clarifier: Arbitrage Funds

Arbitrage is the process of buying stocks or shares in one market and selling it in another to exploit the price difference. An Arbitrage fund is a type of hybrid fund which aims to capitalise on profitable arbitrage opportunities (price differential in a stock) between cash and derivatives segments of the equity market. Thus opportunity lies in generating a good return between these differences.

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Disclaimer – This document is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient should consult their legal, tax and financial advisors before investing.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.