Mahindra Manulife Mutual Fund has launched Mahindra Manulife Arbitrage Yojana, an open ended scheme for investment in arbitrage opportunities available in equity, derivatives and debt markets.
The scheme is suitable for investors who are looking for short term investment options with relatively low risk, tax efficient returns and looking to park money in a scheme relatively less impacted by market volatility.
The NFO opens on August 12, 2020 and closes on August 19, 2020.
The fund house will invest in arbitrage position between cash & futures trading on exchanges, invest in basket of stocks and short the corresponding futures against it or derive higher returns from the implied cost of carry between the underlying and the derivatives market.
In a press release, Ashutosh Bishnoi, MD and CEO, Mahindra Manulife Mutual Fund said, “The investor participation in arbitrage market over years have seen a steady rise due to immense underlying opportunities available. Mahindra Manulife Arbitrage Yojana is suitable for Investors who are seeking income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment over short term. The scheme will uses several strategies to identify arbitrage opportunities across market cycles and offer returns at relatively lower volatility and lower risk.”
