The reason why arbitrage funds are going up and up
SummaryAs the size of these funds go up, it will be difficult for them to find higher number of opportunities for arbitrage
Arbitrage funds had seen a record net inflow of ₹14,924 crore in July. This is the highest monthly net inflows received by the category of funds at least since April 2018. The inflows in these funds have been robust in calendar year 2021 as they have received a net inflow of ₹49,106 crore, while last year during the same period, arbitrage funds saw a net outflow of ₹15,248 crore. So, what is driving investors to these funds now?