{"id":357109,"date":"2026-03-02T17:18:42","date_gmt":"2026-03-02T11:48:42","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=357109"},"modified":"2026-03-02T17:18:42","modified_gmt":"2026-03-02T11:48:42","slug":"arbitrage-funds","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/arbitrage-funds\/","title":{"rendered":"Arbitrage Funds"},"content":{"rendered":"<p><strong>News: <\/strong>Arbitrage funds are gaining attention as investors notice price gaps between NSE and BSE during volatile market phases.<\/p>\n<h2>About Arbitrage Funds<\/h2>\n<figure id=\"attachment_357110\" aria-describedby=\"caption-attachment-357110\" style=\"width: 362px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-357110\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-MF.jpg?resize=362%2C234&#038;ssl=1\" alt=\"Arbitrage Funds\" width=\"362\" height=\"234\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-MF.jpg?resize=300%2C194&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-MF.jpg?resize=1024%2C661&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-MF.jpg?resize=768%2C496&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-MF.jpg?w=1143&amp;ssl=1 1143w\" sizes=\"auto, (max-width: 362px) 100vw, 362px\" \/><figcaption id=\"caption-attachment-357110\" class=\"wp-caption-text\">Source &#8211; MF<\/figcaption><\/figure>\n<ul>\n<li>Arbitrage funds are <strong>hybrid mutual funds<\/strong> that <strong>aim<\/strong> to <strong>earn returns by buying a stock at a lower price in one market and selling it at a higher price in another market at nearly the same time<\/strong>.<\/li>\n<li>The Securities and Exchange Board of India<strong> (SEBI) classifies <\/strong>arbitrage funds as <strong>equity-oriented funds<\/strong> and requires them to <strong>maintain at least 65 percent gross exposure to equities or equity-related securities<\/strong>.<\/li>\n<li><strong>Key features<\/strong>\n<ul>\n<li><strong>Investment strategy: <\/strong>Arbitrage\u00a0fund managers <strong>buy a stock at a lower price<\/strong> in the cash market and <strong>sell its Futures contract at a higher price<\/strong>, or <strong>exploit price differences between NSE and BSE.<\/strong>\n<ul>\n<li>They <strong>execute<\/strong> <strong>trades almost at the same time<\/strong> to capture price spreads without predicting market direction.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Risk Profile:<\/strong> These funds use <strong>hedged positions<\/strong> but are <strong>not risk-free<\/strong>.\n<ul>\n<li>Returns depend on the <strong>availability of price gaps<\/strong>.<\/li>\n<li>When spreads are <strong>narrow or absent<\/strong>, returns may be modest.<\/li>\n<li>They are considered to provide <strong>relatively stable and moderate returns.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Taxation: <\/strong>They are treated as <strong>equity-oriented funds<\/strong> because of the <strong>required equity exposure<\/strong>.<\/li>\n<li><strong>Alternative Asset Class:<\/strong> They offer a <strong>market-linked and flexible option<\/strong> with easier redemption and generally <strong>no premature-withdrawal<\/strong> penalties, unlike fixed deposits.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: Arbitrage funds are gaining attention as investors notice price gaps between NSE and BSE during volatile market phases. About Arbitrage Funds Arbitrage funds are hybrid mutual funds that aim to earn returns by buying a stock at a lower price in one market and selling it at a higher price in another market at&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/arbitrage-funds\/\">Continue reading <span class=\"screen-reader-text\">Arbitrage Funds<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-357109","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/357109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=357109"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/357109\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=357109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=357109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=357109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}