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market volatility: What are arbitrage funds & how do they work? Nemish Sheth of Bandhan AMC explains

"Arbitrage funds are equity-oriented hybrid funds where the fund manager buys a security in the cash market and sells it in the future or derivative market at a premium, known as spreads. Bandhan AMC s arbitrage fund has seen positive momentum and outperformed its peers in the last three to six months. The fund has around 65-75% exposure in equity, with the remainder in debt and money market instruments." ....

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