Can arbitrage mutual funds give you the stability you need in this volatile market?
Updated: 17 May 2022, 02:30 PM IST
TL;DR.It may be bold to invest in equity funds and a bit drab to park money in debt funds. Investors with the least preference for volatility while aiming for constantly positive returns may park their earnings in arbitrage funds that rely on the conventional method of buying low in one market and selling at high in another.
Investments in arbitrage funds have been giving out positive returns almost every year, thus, explaining their relatively stable nature compared to equity and debt funds.