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Arbitrage Funds

About

Arbitrage Funds are Hybrid Mutual Funds that seek to exploit arbitrage opportunities for the same underlying asset in different capital markets. Arbitrage refers to taking advantage of price differentials of the same asset, such as in the spot and futures markets.

Fund Type

Key Features

Secure
Arbitrage Funds have The equity exposure of these funds is wholly hedged.
Balance
Exchange guarantees settlement.
Arbitrage Fund can make substantial gains by taking varying positions in the cash and futures market.
Tax Saving
Taxed as equities.

Taxation

STCG

Holding Period > 12 months, 20% Tax on Gain

LTCG

Holding Period < 12 months, 12.5% Tax on Gain

Dividends Tax

Income tax slab rates

Exemption Limit

1.25 Lakh on LTCG in financial year

Indexation

No Indexation

Allocation

SVG Icon

Equity & Equity related Instruments
65
Other than Equity
35

Locked in Period

No

Exit Load

Risk Associated

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.