The positive inflow pushed the asset base of 45-player mutual fund industry by over 14 per cent to Rs 25.5 trillion at June-end from Rs 22.26 trillion at the end of March
Estimates suggest such funds account for over half of stock futures segment
The arbitrage category witnessed Rs 33,767 crore in net outflow during March
Post-tax returns are likely to be higher if you hold these funds for a year
Arbitrage spreads are normally available in the 35-40 bps range, but have currently narrowed to 15-20 bps with many securities trading at discount
Experts say people have turned averse to taking out, especially meat products, following the outbreak
Arbitrage funds work by exploiting the price differential between the cash and the futures markets
The performance of a fund varies based on the performance of the underlying asset classes, says Ashwani Bhatia
Arbitrage funds are hybrid funds that invest in equity shares
In a low-interest-rate scene, they are better than bank FDs, especially if you're paying 30% tax; they also get preferential tax treatment compared to debt funds
They could offer better post-tax returns than liquid funds and fixed deposits to those in higher tax brackets