{"id":29360,"date":"2024-04-05T12:12:25","date_gmt":"2024-04-05T06:42:25","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=29360"},"modified":"2024-04-05T12:12:26","modified_gmt":"2024-04-05T06:42:26","slug":"here-is-everything-that-you-need-to-know-about-arbitrage-funds","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/mf-research\/here-is-everything-that-you-need-to-know-about-arbitrage-funds\/29360","title":{"rendered":"Here is everything that you need to know about  Arbitrage Funds"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1.jpg\"><img loading=\"lazy\" width=\"1024\" height=\"512\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1-1024x512.jpg\" alt=\"\" class=\"wp-image-29383\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1-1024x512.jpg 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1-300x150.jpg 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1-768x384.jpg 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1-1536x768.jpg 1536w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/Page-Banner-1-1-2048x1024.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">What are Arbitrage Funds?<\/span><\/strong><\/h3>\n\n\n\n<p><strong>Arbitrage Funds<\/strong> are <strong>Debt Oriented<\/strong> <strong>Hybrid Funds<\/strong> which <strong>invest<\/strong> in a <strong>mix of Arbitrage and Debt\/FDs. <\/strong>They usually have <strong>65-75% of their portfolio<\/strong> in<strong> \u2018Arbitrage\u2019 investments<\/strong> and the remaining <strong>25-30% in \u2018Debt\/FDs\u2019<\/strong>.&nbsp;<\/p>\n\n\n\n<p><strong>Over a 6 month to 1 year period, arbitrage fund returns are typically comparable to liquid fund returns. But<\/strong> unlike liquid funds which are taxed according to your tax slab, arbitrage funds enjoy <strong>equity taxation<\/strong> as the funds maintain more than 65% exposure to <strong>arbitrage investments<\/strong>.&nbsp;<\/p>\n\n\n\n<p>For any fund to qualify for equity taxation, the exposure to Indian equities must be above 65% of the portfolio. Arbitrage portion though the returns are similar to a debt liquid fund is considered as equity from the tax angle as it involves buying a stock in the cash market (that is the stock market) and selling it in the futures market.&nbsp;<\/p>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">How do they work?<\/span><\/strong><\/h3>\n\n\n\n<p>Arbitrage Funds work on the <strong>arbitrage principle<\/strong> where they take advantage of pricing difference of a particular asset, between two or more markets. It captures risk free profit on the transaction.<\/p>\n\n\n\n<p>One of the most commonly used strategy by arbitrage funds is the <strong>Cash Future Arbitrage. <\/strong>Under this strategy, <strong>arbitrage funds simultaneously<\/strong> <strong>buy<\/strong><strong> stocks <\/strong>in the<strong> cash market <\/strong>and<strong> sell them in the futures at a slightly higher price <\/strong>thereby<strong> locking the spread (risk free profit)<\/strong> at initiation. At expiry, future price converge with actual stock price accordingly gain is realized.&nbsp;<\/p>\n\n\n\n<p>Example:\u00a0<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-13.png\"><img loading=\"lazy\" width=\"553\" height=\"388\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-13.png\" alt=\"\" class=\"wp-image-29389\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-13.png 553w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-13-300x210.png 300w\" sizes=\"(max-width: 553px) 100vw, 553px\" \/><\/a><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image.jpeg\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1024x576.jpeg\" alt=\"\" class=\"wp-image-29362\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1024x576.jpeg 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-300x169.jpeg 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-768x432.jpeg 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1536x864.jpeg 1536w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image.jpeg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">What should be the return expectation from arbitrage funds?<\/span><\/strong><\/h3>\n\n\n\n<p>Let us evaluate this by comparing the average returns (largest 5 funds) of Arbitrage Funds category vs Liquid Funds category over the last 15 years.<\/p>\n\n\n\n<h4><strong><span style=\"color:#38761d\" class=\"has-inline-color\">For 6 month time frames, Pre-tax returns from arbitrage funds are similar to liquid funds\u2026\u00a0<\/span><\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1.png\"><img loading=\"lazy\" width=\"1024\" height=\"513\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1-1024x513.png\" alt=\"\" class=\"wp-image-29363\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1-1024x513.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1-300x150.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1-768x385.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-1.png 1048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-11.png\"><img loading=\"lazy\" width=\"1024\" height=\"475\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-11-1024x475.png\" alt=\"\" class=\"wp-image-29378\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-11-1024x475.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-11-300x139.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-11-768x356.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-11.png 1176w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<h4><strong><span style=\"color:#38761d\" class=\"has-inline-color\">But Post-tax returns from arbitrage funds are generally better than liquid funds due to lower taxation\u2026\u00a0<\/span><\/strong><\/h4>\n\n\n\n<h4><span style=\"color:#bf9000\" class=\"has-inline-color\"><strong>Arbitrage funds unlike liquid funds enjoy equity taxation..<\/strong>\u00a0<\/span><\/h4>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-3.png\"><img loading=\"lazy\" width=\"922\" height=\"303\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-3.png\" alt=\"\" class=\"wp-image-29365\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-3.png 922w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-3-300x99.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-3-768x252.png 768w\" sizes=\"(max-width: 922px) 100vw, 922px\" \/><\/a><\/figure><\/div>\n\n\n\n<div style=\"height:22px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h5><strong><span style=\"color:#bf9000\" class=\"has-inline-color\">80% of the times Arbitrage Funds on a post-tax basis have outperformed Liquid Funds over 6 month time frames\u2026\u00a0<\/span><\/strong><\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-4.png\"><img loading=\"lazy\" width=\"1024\" height=\"503\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-4-1024x503.png\" alt=\"\" class=\"wp-image-29366\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-4-1024x503.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-4-300x147.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-4-768x377.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-4.png 1062w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-5.png\"><img loading=\"lazy\" width=\"1024\" height=\"467\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-5-1024x467.png\" alt=\"\" class=\"wp-image-29367\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-5-1024x467.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-5-300x137.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-5-768x350.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-5.png 1162w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<h5><strong><span style=\"color:#bf9000\" class=\"has-inline-color\">98% of the times Arbitrage Funds on a post-tax basis have outperformed Liquid Funds over 1 year frames &#8211; average outperformance of 0.9%!<\/span><\/strong><\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-6.png\"><img loading=\"lazy\" width=\"1024\" height=\"508\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-6-1024x508.png\" alt=\"\" class=\"wp-image-29368\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-6-1024x508.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-6-300x149.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-6-768x381.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-6.png 1062w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-7.png\"><img loading=\"lazy\" width=\"1024\" height=\"482\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-7-1024x482.png\" alt=\"\" class=\"wp-image-29369\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-7-1024x482.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-7-300x141.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-7-768x361.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-7.png 1171w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<h4><strong><span style=\"color:#38761d\" class=\"has-inline-color\">Takeaway: Arbitrage funds are a tax efficient alternative and offer better post-tax returns compared to liquid funds over 6M-1Y time frames<\/span><\/strong><\/h4>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">How volatile are arbitrage funds compared to liquid funds?<\/span><\/strong><\/h3>\n\n\n\n<p>We have evaluated volatility by observing the instances of daily or one-day negative returns over the last 15 years.&nbsp;<\/p>\n\n\n\n<div style=\"height:12px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h5><strong><span style=\"color:#38761d\" class=\"has-inline-color\">Daily returns for arbitrage funds were negative 33% of the times vs 0.4% of the times for liquid funds\u2026<\/span><\/strong><\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-8.png\"><img loading=\"lazy\" width=\"682\" height=\"288\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-8.png\" alt=\"\" class=\"wp-image-29370\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-8.png 682w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-8-300x127.png 300w\" sizes=\"(max-width: 682px) 100vw, 682px\" \/><\/a><\/figure><\/div>\n\n\n\n<h5><strong><span style=\"color:#38761d\" class=\"has-inline-color\">This improves once you increase the time frames &#8211; Monthly returns for arbitrage funds were negative only 0.6% of the times vs 0% of the times for liquid funds\u2026<\/span><\/strong><\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-12.png\"><img loading=\"lazy\" width=\"1018\" height=\"577\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-12.png\" alt=\"\" class=\"wp-image-29380\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-12.png 1018w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-12-300x170.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-12-768x435.png 768w\" sizes=\"(max-width: 1018px) 100vw, 1018px\" \/><\/a><\/figure><\/div>\n\n\n\n<h5><strong><span style=\"color:#38761d\" class=\"has-inline-color\">No instances of negative returns for arbitrage funds on a 3 month basis\u2026<\/span><\/strong><\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-9.png\"><img loading=\"lazy\" width=\"1024\" height=\"503\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-9-1024x503.png\" alt=\"\" class=\"wp-image-29371\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-9-1024x503.png 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-9-300x147.png 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-9-768x377.png 768w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2024\/04\/image-9.png 1062w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>While on a 3 month basis there are no instances of negative returns in arbitrage funds, to be on the conservative side we would suggest a minimum time frame of atleast 6 months. If you can hold and extend your time frame by more than 1 year then you also get the benefit of long-term capital gains tax.&nbsp;<\/p>\n\n\n\n<h4><strong><span style=\"color:#38761d\" class=\"has-inline-color\">Takeaway: Arbitrage funds in the short run, are slightly more volatile than liquid fund &#8211; invest with a time frame of atleast 6 months to 1 Year<\/span><\/strong><\/h4>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">Which are the scenarios under which arbitrage fund returns will come under pressure?<\/span><\/strong><\/h3>\n\n\n\n<p>Arbitrage fund returns largely depend on the spreads between the stock and the futures market. The spreads can shrink (or worse still, turn negative) under the following situations:<\/p>\n\n\n\n<ol><li><strong>Bearish or Rangebound markets<\/strong> &#8211; In bearish or range-bound markets, arbitrage opportunities dry up and an arbitrage fund may have to stay invested in debt or hold cash. Also, when the market sentiment is bearish, futures may trade at a discount (and not a premium) to the cash market implying negative spreads.<br><\/li><li><strong>Growing AUMs of arbitrage funds<\/strong> &#8211; As the AUMs of arbitrage funds grow, there is more money chasing arbitrage opportunities and the spreads tend to go down.<br><\/li><li><strong>Falling interest rates<\/strong> &#8211; theoretically, future price is spot price + risk-free rate. Hence, a fall in interest rates, implies lower futures price of a stock and hence lower spreads and reduced arbitrage opportunity.<br><\/li><li><strong>Lower borrowing and currency hedging costs for FIIs <\/strong>&#8211; As these costs come down, there is increased FII participation in Indian equity arbitrage trades. This brings down the overall arbitrage spreads in the market.&nbsp;&nbsp;<\/li><\/ol>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">Are Arbitrage Funds right for you?\u00a0<\/span><\/strong><\/h3>\n\n\n\n<p>Arbitrage funds can be considered if<\/p>\n\n\n\n<ul><li>You have a <strong>time frame of &gt;6 months<\/strong><\/li><li>You are looking for <strong>better post tax returns<\/strong> <strong>than liquid funds<\/strong><\/li><li>You are okay with <strong>slightly higher temporary volatility<\/strong> <strong>(vs liquid funds)<\/strong><\/li><\/ul>\n\n\n\n<h3><strong><span style=\"color:#0b5394\" class=\"has-inline-color\">Summing it up\u00a0<\/span><\/strong><\/h3>\n\n\n\n<ul><li><strong>Arbitrage Funds<\/strong> are <strong>debt oriented<\/strong> <strong>hybrid funds<\/strong> which <strong>invest<\/strong> in a <strong>mix of arbitrage and debt<\/strong>. They usually have <strong>65-75% in arbitrage<\/strong> with <strong>debt and FD\u2019s<\/strong> accounting for the remaining <strong>25-30%<\/strong>.<br><\/li><li>Arbitrage Funds <strong>generate returns<\/strong> by engaging in <strong>arbitrage opportunities<\/strong> and taking advantage of the <strong>spread <\/strong>or the differential in the <strong>price of a stock<\/strong> in the <strong>spot market <\/strong>versus its price in the<strong> futures market.<\/strong><strong><br><\/strong><\/li><li>Arbitrage funds are a <strong>tax efficient alternative<\/strong> (enjoy equity taxation) and offer<strong> better post-tax returns<\/strong> compared to <strong>liquid funds over 6M-1Y time frames<\/strong><strong><br><\/strong><\/li><li>Invest with a <strong>minimum time frame of atleast 6 months <\/strong>as they have slightly higher volatility compared to liquid funds over shorter time frames. By <strong>extending<\/strong> your <strong>time frame <\/strong>to <strong>more than 1 year<\/strong> you can also enjoy the <strong>benefit<\/strong> of<strong> long-term capital gains tax <\/strong>(No tax for gains less than Rs 1 lakh and 10% tax for gains more than 1 lakh)<strong><br><\/strong><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What are Arbitrage Funds? Arbitrage Funds are Debt Oriented Hybrid Funds which invest in a mix of Arbitrage and Debt\/FDs. They usually have 65-75% of their portfolio in \u2018Arbitrage\u2019 investments and the remaining 25-30% in \u2018Debt\/FDs\u2019.&nbsp; Over a 6 month to 1 year period, arbitrage fund returns are typically comparable to liquid fund returns. But [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":29382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[506,509,376],"tags":[210,628,393,209,931,711,92,468,926,205,133,315],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Here is everything that you need to know about Arbitrage Funds<\/title>\n<meta name=\"description\" content=\"These are debt oriented hybrid funds which offer better post-tax returns compared to liquid funds. 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