Categories: Mutual Funds

Arbitrage Funds

Description :

Welcome to the world of Arbitrage funds!

Today you are going to learn Exactly what Arbitrage funds are, in the simplest way possible.

In fact, in this video we are going to show you what it really means and who should invest in them.

With that here is a quick overview of what’s in this video:
1. What are Arbitrage funds?
2. Who are the ideal investors?
3. Where can you invest in these funds?

Speaker Info:

Karan Batra, He is currently Head of strategic alliances and partnerships at Fisdom and with over a decade of experience in sales, marketing, wealth management and Incubating Start-ups across 3 industries. Key strengths include communication, relationship management and effective leadership qualities. Hard working and motivated with a strong sense of discipline. Creative, intuitive and quick to grasp new concepts that are demonstrated by a range of work experiences, interests and achievements.
You can reach out to him at karan@fisdom.com

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TRANSCRIPT:

Hi everyone my name is Karan Batra and I’m from Fisdom .

WHAT IS AN ARBITRAGE FUND?

We will talk about Arbitrage funds, so an arbitrage fund is an open-ended equity scheme which uses arbitrage strategy of investing, arbitrage is nothing but the price difference the cash and the futures market, lets understand this better with an example, so if you have a stock lets say

a) It’s trading in NSE for Rs.100 and at the same time.

b) It’s trading in BSE for Rs.99.

the fund manager will buy it in BSE and sell it in NSE and make a Re.1 profit without taking any risk this is called an arbitrage strategy.

WHY SHOULD YOU INVEST IN AN ARBITRAGE FUND?

so if you are looking to take less risk and still make a decent return then arbitrage funds are for you, arbitrage funds take advantage between the price and the derivative markets, they simultaneously buy in one place and sell in the second place thus making sure the risk is very minimal.

WHO SHOULD INVEST IN AN ARBITRAGE FUND?

Arbitrage funds are best suited for investors who are looking at taking very low degree of risk and also who want to make sure that there’s not much volatility in their returns, arbitrage funds are best suited anywhere from one month even all the way upto a year from an investors horizon.
so now that we know arbitrage funds are a low risk and low volatility investment option.

HOW TO INVEST IN ARBITRAGE FUNDS?

Go ahead and open your Fisdom App go to the do it yourself section you will find 3 options equity, debt and hybrid click on the hybrid option you will find 3 more options within that click arbitrage section you will find all the different arbitrage funds, select the one that is best suited for you and go ahead and make your investment and get your money invested.

Akshatha Sajumon

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