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Best arbitrage mutual funds stand out as volatility offers new opportunities
On 17 November 2025, analysis of Indian mutual-fund schemes highlighted arbitrage funds as particularly attractive for investors seeking stability and returns amid market turbulence. These funds exploit price gaps between cash and derivatives markets, and today the recommended schemes include Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund, thanks to improved roll-yield and offsetting of interest-rate risk by dynamic asset allocation. Portfolio strategists pointed out that arbitrage funds’ tax treatment as equity schemes makes them suitable for investors with a one-year plus horizon.
Given the ongoing cash-futures gap in major indices, these funds are positioned to benefit while equity markets remain uncertain.
neutral
Best arbitrage mutual funds stand out as volatility offers new opportunities
On 17 November 2025, analysis of Indian mutual-fund schemes highlighted arbitrage funds as particularly attractive for investors seeking stability and returns amid market turbulence. These funds exploit price gaps between cash and derivatives markets, and today the recommended schemes include Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund, thanks to improved roll-yield and offsetting of interest-rate risk by dynamic asset allocation. Portfolio strategists pointed out that arbitrage funds’ tax treatment as equity schemes makes them suitable for investors with a one-year plus horizon.
Given the ongoing cash-futures gap in major indices, these funds are positioned to benefit while equity markets remain uncertain.
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Arbitrage mutual-fund schemes such as Kotak and Nippon India are gaining appeal on 17 Nov as investors exploit derivatives spreads amid market volatility.
On 17 November 2025, analysis of Indian mutual-fund schemes highlighted arbitrage funds as particularly attractive for investors seeking stability and returns amid market turbulence. These funds exploit price gaps between cash and derivatives markets, and today the recommended schemes include Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund, thanks to improved roll-yield and offsetting of interest-rate risk by dynamic asset allocation. Portfolio strategists pointed out that arbitrage funds’ tax treatment as equity schemes makes them suitable for investors with a one-year plus horizon.
Given the ongoing cash-futures gap in major indices, these funds are positioned to benefit while equity markets remain uncertain.
On 17 November 2025, analysis of Indian mutual-fund schemes highlighted arbitrage funds as particularly attractive for investors seeking stability and returns amid market turbulence. These funds exploit price gaps between cash and derivatives markets, and today the recommended schemes include Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund, thanks to improved roll-yield and offsetting of interest-rate risk by dynamic asset allocation. Portfolio strategists pointed out that arbitrage funds’ tax treatment as equity schemes makes them suitable for investors with a one-year plus horizon.
Given the ongoing cash-futures gap in major indices, these funds are positioned to benefit while equity markets remain uncertain.
Companies:
Kotak Equity Arbitrage Fund
Nippon India Arbitrage Fund
Tags:
mutual_funds
arbitrage funds
mutual_funds
arbitrage funds
investment strategy
cash-futures spread