Do you want to park your money for a year or more? Are you looking for the best after-tax returns? Consider investing in arbitrage mutual funds.
Arbitrage funds look for arbitrage opportunities available between the cash and derivatives markets. In other words, the fund managers in these schemes look for the price difference that they can exploit between the cash and derivatives markets. They may also invest in debt securities and equities if there are no arbitrage opportunities available in the market.
