Arbitrage funds are gaining favour as investors flock to safety: Experts

Arbitrage funds are gaining favour as the perceived safety tag associated with these schemes is helping them pull in money from debt investors. Assets of these hybrid funds have grown 36 per cent in the past five months to Rs 68,541 crore as on August 31, 2019. Most of the funds in this category have returned between 6.5-7 per cent in the past year, and may offer better returns than some debt categories. As a category, one-year returns of these funds are higher than that of medium duration, short duration, and credit risk funds, and on a par with liquid and ultra-short-term funds. &.....

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