Arbitrage schemes, a hybrid fund category, received net inflows of Rs 59,000 crore during 2023, which is highest among all fund categories, according to the Association of Mutual Funds of India (AMFI), the industry trade body for mutual funds.
In terms of returns, the average of the arbitrage funds category stands at 7.19 percent on a one-year basis. So, what’s behind the bumper inflows to these funds?