Q. I am a civil engineer working with a construction company in Pune, my wife is a scientist working with a bio-medical start-up in Pune. The working mechanism of arbitrage mutual funds involves a few key steps: Market neutral strategy: Arbitrage mutual funds employ a market-neutral strategy, meaning they can generate returns irrespective of market direction. Difference in returns: Arbitrage …
Arbitrage involves the concurrent purchase and sale of an identical asset in distinct markets to leverage price differentials. When you are not aware of the nitty gritty of debt funds and want to park for a short term, say less than a year or so, or wish to avail of the tax benefits, arbitrage funds may be a great choice …