Definition: Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and derivatives market to generate returns. The returns are dependent on the volatility of the asset.
Rather than purchasing. To provide capital appreciation and regular income for unit holders by identifying profitable arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market.
Principal Arbitrage Fund is an open ended mutual fund scheme that invests in arbitrage opportunities in the cash ( stock) and derivative segments of the equity markets. These funds are hybrid in nature as they have.Arbitrage MFs provides income for the investors over short- term. Arbitrage funds are tailor- made for risk- averse investors and are a safe option to park money when there is a persistent wobble in the market.
பைனரி விருப்பங்கள் arbitrage மென்பொருள். Arbitrage funds are a type of mutual fund that make profits by buying and selling securities on different exchanges.