{"id":10708,"date":"2025-06-05T11:33:03","date_gmt":"2025-06-05T11:33:03","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=10708"},"modified":"2025-08-12T13:19:48","modified_gmt":"2025-08-12T13:19:48","slug":"what-are-arbitrage-funds","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/what-are-arbitrage-funds\/","title":{"rendered":"What are Arbitrage Funds?\u00a0"},"content":{"rendered":"\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><nav><ul><li class=\"\"><a href=\"#what-are-arbitrage-funds\">What are Arbitrage Funds?\u00a0<\/a><\/li><li class=\"\"><a href=\"#how-do-arbitrage-funds-work\">How Do Arbitrage Funds Work?\u00a0<\/a><\/li><li class=\"\"><a href=\"#benefits-of-arbitrage-funds\">Benefits of Arbitrage Funds\u00a0<\/a><\/li><li class=\"\"><a href=\"#list-of-top-arbitrage-funds\">List of Top Arbitrage Funds\u00a0<\/a><\/li><li class=\"\"><a href=\"#things-to-consider-before-investing-in-arbitrage-funds\">Things to Consider Before Investing in Arbitrage Funds<\/a><\/li><li class=\"\"><a href=\"#who-should-invest-in-arbitrage-funds\">Who Should Invest in Arbitrage Funds?\u00a0<\/a><\/li><li class=\"\"><a href=\"#final-thoughts\">Final Thoughts\u00a0<\/a><\/li><li class=\"\"><a href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<p>\u201cIf You Don&#8217;t Find a Way to Make Money While You Sleep, You Will Work Until You Die.\u201d &nbsp;<\/p>\n\n\n\n<p>These are the words of Warren Buffet from his rare interviews in 2017.&nbsp;He means the power of passive income and tells everyone to allow their money to work through stocks, dividends, and mutual funds. &nbsp;<\/p>\n\n\n\n<p>Mutual funds offer a wide range of options to control every investor\u2019s risk appetite. Among them, <strong>arbitrage funds<\/strong> stand out as a unique hybrid category because that leverages price differences in different markets to generate returns. In this blog, we\u2019ll explain <strong>what are arbitrage funds, <\/strong>how they work, benefits, and who should consider investing in them in detail.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3cca8be14d2579d43c1870d7a0ca0307\" id=\"what-are-arbitrage-funds\" style=\"color:#023368\">What are Arbitrage Funds?&nbsp;<\/h2>\n\n\n\n<p>Before diving into the deep <strong>meaning of arbitrage funds, <\/strong>you have to understand how the cash and futures market operate. &nbsp;<\/p>\n\n\n\n<p>\ud83e\udc16 <strong>Cash Market: <\/strong>Regular buying and selling of stocks at their current price are also known as spot prices. &nbsp;<\/p>\n\n\n\n<p>\ud83e\udc16 <strong>Futures Market: <\/strong>It involves contracts to buy or sell the same stocks at a future date for a fixed price. &nbsp;<\/p>\n\n\n\n<p>There is a price difference between these two markets, at that time <strong>arbitrage opportunity <\/strong>arose. For example, if a stock is trading at \u20b9100 in the cash market and \u20b9103 in the futures market, the trader can buy it at \u20b9100 and sell it in the future market at \u20b9103. Here he locks a profit of \u20b93 per share and is risk-free. &nbsp;<\/p>\n\n\n\n<p><strong>So, arbitrage funds are a type of mutual fund scheme that focuses on these short-term price differences between cash and future markets to make profits. &nbsp;<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/navia.co.in\/app.html\" style=\"background-color:#ec4d37\"><strong>Get Navia APP<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-db28e32c79fafe05120705949f66ef2b\" id=\"how-do-arbitrage-funds-work\" style=\"color:#023368\">How Do Arbitrage Funds Work?&nbsp;<\/h2>\n\n\n\n<p>Let\u2019s break down the process of generating funds through arbitrage funds with a simple example. &nbsp;<\/p>\n\n\n\n<p><strong>Example; <\/strong>&nbsp;<\/p>\n\n\n\n<p>A stock named XYZ trading at \u20b9500 in the cash market and trading in futures market at \u20b9510. The fund manager buys XYZ stock at \u20b9500 in the cash market simultaneously sells the same quantity in the futures market at \u20b9510. It is considered the classic arbitrage trade; they are buying low (cash) and selling high (futures) to lock in a price difference. &nbsp;<\/p>\n\n\n\n<p>At the time of expiry,&nbsp;the arbitrage trade settles as follows: &nbsp;The fund manager had bought XYZ stock at \u20b9500 in the cash market and sold its futures at \u20b9510. By expiry, both the cash and futures prices converge to \u20b9505. &nbsp;<\/p>\n\n\n\n<p>The futures contract settles at \u20b9505, giving a profit of \u20b95 (\u20b9510 \u2013 \u20b9505). If the stock is also sold at \u20b9505, it yields another \u20b95 profit (\u20b9505 \u2013 \u20b9500). Thus, the total arbitrage gain is \u20b910 per share, locked in by the price difference at the time of the trade.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2dbf1c04b411987c0868c37269938612\" id=\"benefits-of-arbitrage-funds\" style=\"color:#023368\">Benefits of Arbitrage Funds&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Terms<\/strong>&nbsp;<\/td><td><strong>Definition<\/strong>&nbsp;<\/td><\/tr><tr><td>Low Risk&nbsp;<\/td><td>Through this process the action of buying and selling happen simultaneously, so the market risk is minimal.&nbsp;<\/td><\/tr><tr><td>Suitable for Volatile Markets&nbsp;<\/td><td>The increasing volatility will create more opportunities for price mismatches, which arbitrage funds can exploit effectively. &nbsp;<\/td><\/tr><tr><td>Tax Efficiency&nbsp;<\/td><td>It is like equity funds, which means short-term (less than 1 year) capital gains are taxed at 15% and long term (more than 1 year) are taxed at 10%. &nbsp;<\/td><\/tr><tr><td>Quick Profits&nbsp;<\/td><td>Arbitrage trades are short-term, and they settle quickly, so the traders can realize the gains in a short amount of time. &nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-c64f09e5833decc9ed1817062d3df689\" id=\"list-of-top-arbitrage-funds\" style=\"color:#023368\">List of Top Arbitrage Funds&nbsp;<\/h2>\n\n\n\n<p>Here you can see some of the <strong>best arbitrage funds <\/strong>based on AUM, and past performance. &nbsp;<\/p>\n\n\n\n<p>NAV &amp; Returns data as on 04-Jun-25&nbsp;*Source: Moneycontrol &nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Scheme Name<\/strong>&nbsp;<\/td><td><strong>Aum (Cr)<\/strong>&nbsp;<\/td><td><strong>6 M<\/strong>&nbsp;<\/td><td><strong>1 Yr<\/strong>&nbsp;<\/td><td><strong>5 Yr<\/strong>&nbsp;<\/td><td><strong>10 Yr<\/strong>&nbsp;<\/td><\/tr><tr><td>Kotak Equity Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>63,309.51&nbsp;<\/td><td>3.73%&nbsp;<\/td><td>7.53%&nbsp;<\/td><td>6.31%&nbsp;<\/td><td>6.52%&nbsp;<\/td><\/tr><tr><td>Invesco India Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>20,029.39&nbsp;<\/td><td>3.67%&nbsp;<\/td><td>7.48%&nbsp;<\/td><td>6.36%&nbsp;<\/td><td>6.49%&nbsp;<\/td><\/tr><tr><td>Bandhan Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>8,656.28&nbsp;<\/td><td>3.72%&nbsp;<\/td><td>7.51%&nbsp;<\/td><td>6.13%&nbsp;<\/td><td>6.40%&nbsp;<\/td><\/tr><tr><td>Edelweiss Arbitrage Fund Direct Pan Growth&nbsp;<\/td><td>14,307.17&nbsp;<\/td><td>3.73%&nbsp;<\/td><td>7.48%&nbsp;<\/td><td>6.26%&nbsp;<\/td><td>6.60%&nbsp;<\/td><\/tr><tr><td>Nippon India Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>14,112.58&nbsp;<\/td><td>3.58%&nbsp;<\/td><td>7.30%&nbsp;<\/td><td>6.17%&nbsp;<\/td><td>6.53%&nbsp;<\/td><\/tr><tr><td>Aditya Birla Sun Life Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>15,895.77&nbsp;<\/td><td>3.78%&nbsp;<\/td><td>7.56%&nbsp;<\/td><td>6.15%&nbsp;<\/td><td>6.42%&nbsp;<\/td><\/tr><tr><td>SBI Arbitrage Opportunities Fund Direct Plan Growth&nbsp;<\/td><td>31,895.02&nbsp;<\/td><td>3.68%&nbsp;<\/td><td>7.36%&nbsp;<\/td><td>6.09%&nbsp;<\/td><td>6.26%&nbsp;<\/td><\/tr><tr><td>Axis Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>6,299.25&nbsp;<\/td><td>3.70%&nbsp;<\/td><td>7.42%&nbsp;<\/td><td>6.15%&nbsp;<\/td><td>6.50%&nbsp;<\/td><\/tr><tr><td>ICICI Prudential Equity Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>26,917.80&nbsp;<\/td><td>3.69%&nbsp;<\/td><td>7.47%&nbsp;<\/td><td>6.09%&nbsp;<\/td><td>6.41%&nbsp;<\/td><\/tr><tr><td>UTI Arbitrage Fund Direct Plan Growth&nbsp;<\/td><td>6,899.22&nbsp;<\/td><td>3.71%&nbsp;<\/td><td>7.43%&nbsp;<\/td><td>6.11%&nbsp;<\/td><td>6.38%&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Note: Returns are indicative and may vary. Make sure to review the most recent data before making any investment decisions.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC.png\" alt=\"Arbitrage funds\" class=\"wp-image-9412\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-768x112.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-a5c8aba5239532feee184d429d8e2157\" id=\"things-to-consider-before-investing-in-arbitrage-funds\" style=\"color:#023368\">Things to Consider Before Investing in Arbitrage Funds<\/h2>\n\n\n\n<p>\ud83e\udc16 Arbitrage funds offer relatively low but stable returns, so it is not suitable for investors who are seeking high growth.&nbsp;<\/p>\n\n\n\n<p>\ud83e\udc16 These funds perform better in volatile markets, where price differences between cash and futures segments are wider.&nbsp;<\/p>\n\n\n\n<p>\ud83e\udc16 Arbitrage funds are taxed like equity <a href=\"https:\/\/navia.co.in\/blog\/category\/mutual-funds\/\">mutual funds<\/a> in India; short-term capital gains (STCG) are taxed at 15%, and long-term gains (LTCG) over \u20b91 lakh are taxed at 10%.&nbsp;<\/p>\n\n\n\n<p>\ud83e\udc16 It is an ideal option for short-term investment horizon (3\u201312 months) also they can earn better post-tax returns than savings&nbsp;<\/p>\n\n\n\n<p>\ud83e\udc16 Some funds may charge an exit load if redeemed before a specific period, so, always check the scheme details before investing.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-44d90b273bc2668a3a69ae9dcb9bedd2\" id=\"who-should-invest-in-arbitrage-funds\" style=\"color:#023368\">Who Should Invest in Arbitrage Funds?&nbsp;<\/h2>\n\n\n\n<p>Arbitrage funds are suitable for the following types of investors; &nbsp;<\/p>\n\n\n\n<p>\u25cf Risk-averse investors who want equity-like benefits with lower market risk&nbsp;<\/p>\n\n\n\n<p>\u25cf Investors who looking to get short-term surplus funds for 3-6 months&nbsp;<\/p>\n\n\n\n<p>\u25cf The investors who need higher tax slabs than traditional debt instrument&nbsp;<\/p>\n\n\n\n<p>\u25cf They want to diversify their portfolio with low risk&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-351cdb2c9f72bba65b137540105af318\" id=\"final-thoughts\" style=\"color:#023368\">Final Thoughts&nbsp;<\/h2>\n\n\n\n<p>To sum up,<strong> what are arbitrage funds<\/strong>? They are a smart blend of low-risk strategy and tax efficiency and offer safe trading in a volatile market. But they don\u2019t promise extraordinary returns, but they are considered a great short-term investment tool. If you want to invest safely without compromising tax advantages and risk appetite arbitrage is the best solution for you. Just be sure to assess fund performance, exit load terms, and your <a href=\"https:\/\/navia.co.in\/blog\/category\/investments\/\">investment<\/a> horizon before diving in.&nbsp;<\/p>\n\n\n\n<p>Looking for low-risk investment options with better tax efficiency? Explore arbitrage funds on the <strong><a href=\"https:\/\/navia.co.in\/\" data-type=\"link\" data-id=\"https:\/\/navia.co.in\/\">Navia<\/a><\/strong> App today and make the most of market opportunities with minimal volatility. &nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-ad2f72ca wp-block-group-is-layout-flex\">\n<p>We\u2019d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png\" alt=\"feedback yes or no button\" class=\"wp-image-8901\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9a07b674a5b87db9730c3cf59dbbb76b\" id=\"frequently-asked-questions\" style=\"color:#023368\">Frequently Asked Questions<\/h2>\n\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-3eca287f-80c0-4fe1-9657-94ed831b400c\" data-mobilecollapse=\"false\" data-desktopcollapse=\"false\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-0-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>Can an arbitrage fund give negative returns?\u00a0<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-0-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p>Yes, arbitrage funds can give negative returns in rare cases, especially during extreme market volatility or if arbitrage opportunities fail to materialize. \u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-1-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>What is the difference between Arbitrage funds and Hedge Funds?\u00a0<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-1-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p><strong>Arbitrage funds<\/strong> exploit price differences between cash and futures markets for low risk returns, mainly in mutual fund format.\u00a0<br><strong>Hedge funds<\/strong> use aggressive, high-risk strategies across asset classes to generate high returns and are meant for high-net-worth investors.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-2-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>How does an Arbitrage Fund work?<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-2-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p>An arbitrage fund works by exploiting price differences between the cash and futures markets\u2014buying stocks in the cash market and simultaneously selling them in the futures market. The fund locks in a risk-free profit when both prices converge at expiry.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-3-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>What is the minimum amount required to invest in an Arbitrage Fund?<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-3-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p>The minimum amount to invest in an arbitrage fund typically starts at \u20b9500 to \u20b91,000 for SIPs and around \u20b95,000 for lump-sum investments. However, it may vary depending on the mutual fund.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-4-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>How safe is the arbitrage fund investment?<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-4-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p>Arbitrage fund investments are relatively safe as they exploit price differences between markets with minimal directional risk. \u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-5-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>Who can invest in arbitrage funds?<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-5-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p>Arbitrage funds are ideal for conservative investors seeking low-risk, short-term investments with better tax efficiency.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #f1f1f1; \" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #f1f1f1;\" aria-controls=\"ub-content-toggle-panel-6-3eca287f-80c0-4fe1-9657-94ed831b400c\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-3eca287f-80c0-4fe1-9657-94ed831b400c\" style=\"color: #000000; \"><strong>What is the benefit of investing in Arbitrage funds?<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap right\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down open\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"true\" class=\"wp-block-ub-content-toggle-accordion-content-wrap\" id=\"ub-content-toggle-panel-6-3eca287f-80c0-4fe1-9657-94ed831b400c\">\n\n<p>Arbitrage funds offer low risk returns by exploiting price differences between cash and futures markets, and they are also tax efficient.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n\n<p><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fnavia.co.in%2Fblog%2Fwhat-is-speculation-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/twitter.com\/intent\/tweet?text=What%20is%20Speculation%20in%20Trading%3F%C2%A0&amp;url=https%3A%2F%2Fnavia.co.in%2Fblog%2Fwhat-is-speculation-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https%3A%2F%2Fnavia.co.in%2Fblog%2Fwhat-is-speculation-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/api.whatsapp.com\/send?text=What%20is%20Speculation%20in%20Trading%3F%C2%A0%20https%3A%2F%2Fnavia.co.in%2Fblog%2Fwhat-is-speculation-in-trading%2F\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/telegram.me\/share\/url?url=https%3A%2F%2Fnavia.co.in%2Fblog%2Fwhat-is-speculation-in-trading%2F&amp;text=What%20is%20Speculation%20in%20Trading%3F%C2%A0\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIf You Don&#8217;t Find a Way to Make Money While You Sleep, You Will Work Until You Die.\u201d &nbsp; These are the words of Warren Buffet from his rare interviews in 2017.&nbsp;He means the power of passive income and tells everyone to allow their money to work through stocks, dividends, and mutual funds. &nbsp; Mutual [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10712,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[209],"tags":[560,11,7,21,22,53,32],"class_list":["post-10708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","tag-arbitrage-funds","tag-financial-goals","tag-indian-stock-markets","tag-investments","tag-investor","tag-marketperformance","tag-wealth-creation"],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/06\/What-are-Arbitrage-Funds.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=10708"}],"version-history":[{"count":6,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10708\/revisions"}],"predecessor-version":[{"id":12454,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10708\/revisions\/12454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/10712"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=10708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=10708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}