What are the potential risks and rewards of investing in arbitrage funds during a bear market

Thus LTCM failed as a fixed income arbitrage fund, although it is unclear what sort of profit was realised by the banks that bailed LTCM out. See also. edit ... Feb 7, 2025 ... Arbitrage funds are mutual funds that seeks to generate returns by exploiting price differences between the cash (spot) market and the futures ... In an arbitrage fund, the fund manager invests in equities only when he finds a definite opportunity to earn returns. If there are no arbitrage opportunities ... The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of ... The First Trust Merger Arbitrage Fund seeks returns that are largely uncorrelated to the returns of the general stock market, and capital appreciation. An arbitrage fund is a hybrid mutual fund that aims to generate profit from the difference in prices of securities in the derivatives and cash market. NexPoint Merger Arbitrage Fund. Investment Objective: The investment objective of NexPoint Merger Arbitrage Fund (the “Merger Arbitrage Fund” or the “Fund”) is ... The Fund aims to have exposure across merger arbitrage, convertible arbitrage, and corporate event-driven strategies and tilt toward the most attractive ... As per existing mutual fund taxation rules, an investor holds shares in an arbitrage fund for more than a year, then any profits are tax-free up to Rs. 1 lakh ... Oct 7, 2022 ... ... Arbitrage Fund trading pure arbitrage in digital assets on major cryptocurrency exchanges. The Fund started trading in May 2022, employing a ...