Arbitrage funds have recorded net inflows for three months straight, after steep outflows for half a year before that.
The trend changed as mutual fund (MF) schemes improved amid a rise in equity market volatility.
Investors redeemed over Rs 31,000 crore from arbitrage schemes between June and November before putting in Rs 3,000 crore in the last three months, shows data from the Association of Mutual Funds in India (Amfi).