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Arbitrage schemes see uptick in flows as short-term investors play safe

image Arbitrage schemes saw sharp uptick in flows in May as a spate of downgrades and payment delays by certain borrowers dented sentiments on shorter-duration schemes, which take credit risks in their portfolios. “Typically, arbitrage schemes have lower exposure to credit papers and also tend to do well during volatile periods due to wider cash-futures spreads available,” said Kaustubh Belapurkar, director (fund research), Morningstar Investment. According to data from the Association of Mutual Funds in India, arbitrage schemes saw Rs 4,554 crore of inflows in May, which was …

Source: Business Standard