Arbitrage funds saw a massive 2,507% inflow surge in January, driven by volatility and tax efficiency. However, the Union Budget 2026's increased STT on F&O trades and tax changes are expected to ...
In the Budget 2026, Finance Minister Nirmala Sitharaman announced that STT on futures contracts would be raised to 0.05% from ...
Mohit Gang, CEO & Co-founder of Moneyfront, said that while arbitrage funds continue to offer a return advantage over liquid ...
Arbitrage funds are mutual funds that exploit price differences between cash and derivatives markets. They buy stocks in the ...
Arbitrage fund returns to take a 30-50 bps hit from Budget 2026's F&O tax hike, but post-tax advantage over debt funds intact ...
According to estimates shared by Edelweiss Mutual Fund, the incremental increase in STT could lead to an annualised impact of around 0.32 percentage points on arbitrage fund returns.
In the Union Budget 2026, Finance Minister Nirmala Sitharaman announced an increase in STT rates for futures to 0.05% from 0.02% earlier and for options to 0.15% from 0.1%/0.125%, aimed at curbing ...
While the increase is small in absolute terms, it has material implications for arbitrage funds, which depend on cash-futures spreads to generate returns.
If you are looking to park your hard-earned money for the short-term, look beyond the savings bank account. Consider arbitrage funds and/or liquid funds.
Investors often find themselves at a crossroads when choosing between arbitrage mutual funds and direct equity investments ...
The recent increase in securities transaction tax (STT), announced by the Finance Minister Nirmala Sitharaman in the Union Budget 2026, is expected to reduce returns from arbitrage funds by around ...