Arbitrage funds benefit from the price difference between cash and futures market. They earn a spread by buying in the cash market and selling in the futures market. Financial planners point out that many investors who are staggering investments into equities use arbitrage funds as a parking vehicle, due to lower taxation as compared to debt funds.
Nilesh Shah on why you should never predict the market
Nilesh Shah of Kotak AMC has advised people not to try to predict the market, stating that more often than not, they will be wrong.