Many #investment #experts believe that leveraging arbitrage opportunities is the best way to generate #wealth
Arbitrage is about finding a price difference of the same #security between two or more markets and capitalizing on it.
As an investor, if you find the price of a stock to be different in the futures and spot markets, then you have an opportunity to cash in on it.
However, this requires a lot of research and understanding of the way the market functions.
This is where Arbitrage Mutual Funds step in.
Plus, it has the tax advantage. So, just to give you some numbers, if I compare a debt fund or an FD which is giving me 7% versus an arbitrage fund which is giving me 7% post tax, the FD would turn out to be at 5% and the arbitrage fund would work out at around 6.35%.
Disclaimer: I create the content for educational purpose only
Consult an #experts #CFP #QPFP before investing.
#samparkonline #learnb4uearn #mutualfunds #sip #wealthcreation #financialfreedom
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