Arbitrage funds are risk-free and guarantee profits
Believing that arbitrage funds are risk-free and guarantee profits is a misconception.
Arbitrage funds depend on market inefficiencies, which might not always result in arbitrage opportunities. There’s still a level of risk involved, and returns can be modest during certain market conditions.
The risk level is lower compared to pure equity investments, but it’s not zero. It’s crucial to understand that arbitrage funds, like all investments, come with their own set of risks, and one should carefully assess their risk tolerance and objectives before investing.
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Weekly Wrap-up
This week we discussed
What is an Arbitrage Fund? Is it suitable for short-term investments for you?
Let’s understand how arbitrage fund works, its historical performance, & the pros & cons of investing in it. Then, you can decide if this fund is right for you.
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Let’s break down Equity Savings Fund. Understand what it is, how it works, its historical performance, and the pros and cons. And whether it is suitable for you