Jun 1, 2023
"If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck", goes the saying. Arbitrage mutual funds are actually taxed as equity funds but they actually behave as debt funds.
And this tax arbitrage of arbitrage funds is what the regulators may be looking to fix.
In light of this, we have our latest episode of the Capitalmind Podcast, where we dive into the intriguing world of arbitrage mutual funds, also known as arb funds.
In this shorter episode, our hosts, Deepak and Shray, explores the role these funds play in your investment portfolio and delves into the impact of recent changes in debt mutual fund taxation on arbitrage funds.
Here's a sneak peek of what you can expect from this episode
Here are five key questions that will be answered in this episode
Join us as we unravel the complexities of arbitrage mutual funds and gain a deeper understanding of their implications for your investment strategy.
01:00 What do arbitrage funds (arb funds) do and where they fit in your investment portfolio?
08:30 Why didn’t arb funds become the FD replacement?
12:30 How big are arbitrage funds and what does that mean as a percentage of total volumes/positions on the stock market?
18:45 Arbitrage Funds are a huge part of our market and it's a problem. Why?
21:30 First and Second order effects of taxing arb funds like debt
34:00 What are the advice or takeaways?
If you have any feedback, ideas for future topics, or questions, we'd love to hear from you. Send us an email at podcast[at]capitalmind[dot]in.
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