Which is the best arbitrage fund?
Which is the best arbitrage fund?
Top 10 Best Performing Arbitrage Funds
| Mutual fund | 5 Yr. Returns | Min. Investment |
|---|---|---|
| ICICI Prudential Smallcap Fund – Direct Plan – Growth | 20.28% | ₹5000 |
| ICICI Prudential Smallcap Fund | 19.03% | ₹5000 |
| Mahindra Manulife Multi Cap Badhat Yojana Regular Plan Growth | — | — |
| SBI Contra Fund – Direct Plan – Growth | 18.42% | ₹5000 |
What is arbitrage fund?
Definition: Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns. These funds are hybrid in nature as they have the provision of investing a sizeable portion of the portfolio in debt markets.
How is Edelweiss Arbitrage Fund?
The Scheme seeks to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
What is UTI arbitrage fund?
Fund Overview The objective of the scheme is to generate capital appreciation through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments.
What is an arbitrage transaction?
What Is Arbitrage? Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset’s listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms.
What is HDFC arbitrage fund?
An open ended scheme investing in arbitrage opportunities. The Fund invests a minimum of 65% into fully hedged equity positions. The Scheme would carry out simple strategies, which would be to take offsetting positions on various markets simultaneously across various asset classes.
What is the additional benchmark of UTI arbitrage fund?
It is benchmarked against CRISIL Arbitrage Index. 1. The asset allocation of the fund comprises around 68.78% in equities, 22.06% in debts and 9.17% in cash & cash equivalents.
What is HDFC Arbitrage fund?
What are the three conditions for arbitrage?
There are three basic conditions under which arbitrage is possible:
- The same asset trades for different prices in different markets.
- Assets with the same cash flows trade for different prices.
- Assets with a known future price trade at a discount today, in relation to the risk-free interest rate.
Is arbitrage fund safe?
Arbitrage funds make profits from low-risk buy-and-sell opportunities in the cash and futures market. Their risk level is comparable with that of a pure debt fund. Several arbitrage funds follow Crisil BSE 0.23% Liquid Fund Index as their benchmark.