An arbitrage mutual fund is a very specialized Equity Fund that makes money by exploiting tiny differences in the prices of shares in different exchanges or the differences in prices between shares and their derivatives.
These funds are not very risky provided they are managed professionally under a good risk management system and they adhere to rules. Which is why it is critical to be invested with a good fund house in these funds. Overall returns are around the rate of an FD, but, and this is what makes arbitrage funds attractive, capital gains on these funds are tax free after a year of holding. On the other hand, taxes on debt funds comparable to arbitrage funds reduce only after three years of holding to 20% with indexation, and gains from FDs are usually added to your income.
The best use of an arbitrage fund is to park large sums of money for the short term. You can write to us to invest at SphereGreen.Investments@gmail.com, or you can contact us through this blog, or simply call us to invest.
The best use of an arbitrage fund is to park large sums of money for the short term. You can write to us to invest at SphereGreen.Investments@gmail.com, or you can contact us through this blog, or simply call us to invest.
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