Not exact matches
Estee group of companies runs
arbitrage funds and
does market making activities in emerging markets around the world.
Do you mean risk in the sense that when you buy and sell mutual
funds, you get the exact NAV price calculated at the end of the day; when you buy and sell ETFs you have a free market price that while it's unlikely to diverge much from the underlying NAV because arbitrageurs gonna
arbitrage, it theoretically could?
Closed - end
funds do not have such mechanisms and offer greater opportunities for
arbitrage.
Arbitrage Tactical Equity
Fund will
do complicated things in pursuit of capital appreciation.
If the ETF disclosed its holdings frequently enough so that
arbitrage could take place, there'd be no reason to buy the ETF: smart investors would simply let the
fund manager
do all of the research and then wait for the disclosure of his or her best ideas.
Because making markets in NextShares
does not involve
arbitrage, NextShares can maintain efficient share trading without disclosing
fund holdings.
Arbitrage is great and can be a powerful wealth - building tool but if the invested
funds don't perform as expected (a short term investment looking at long - term historic results may not generate consistent monthly payments) the loan still has to be paid every month.
Not very keen on a liq
fund as it is very short term and more skewed towards parking of lumpsum surplus
funds where as i am looking at building a emergency
fund through the SIP route as i
do not have the luxury of surplus
funds and hence
arbitrage looks a better bet.
For accumulating an emergency
fund, kindly
do not consider Equity
funds, you may consider Liquid
funds /
Arbitrage funds (
funds which have less risk profile).
How
do Arbitrage Mutual
Funds work?
But,
do not invest in
Arbitrage funds with an objective to get double digit returns.
Dear Suru, You may surely consider
Arbitrage fund for Emergency
fund, but
do not put entire corpus in an
Arbitrage fund,
do hold some amount in Cash + FDs.
Do you invest in
Arbitrage Funds?
But
do note that Exit load is applicable for
Arbitrage funds (if redeemed between 30 to 90 days, generally).
Also, how
does the mutual
fund avoid
arbitraging its clients?
They may go long and short, but there are so many trying to
do it that the limits of
arbitrage are tested, which is a major reason for why hedge
funds are
doing so badly.
The Budget has created a tax
arbitrage between unit linked insurance policies (ULIP) and mutual
funds as mutual
fund investors have to pay 10 per cent tax on long - term capital gains, whereas ULIP investors
do not.
Although the Journal
did not describe the
arbitrage mechanism, its story claimed that narrowing spreads between the bitcoin price and the GBTC price allowed traders to profit as they would when
arbitraging an exchange - traded
fund (ETF) and its underlying assets.