Arbitrage Funds

Silver Lining During this Extreme Risk Aversion Investment Mindsets of Investors

Investors are wary of investing even in Liquid schemes or Ultra Short-Term Bond funds due to all the various events and circumstances. Many have in fact, redeemed out of these schemes; thereby showing extreme risk aversion to investing. Equity market corrections and COVID issue has also added fuel to fire. In such circumstances, there is one Asset Class which is capable of fulfilling the investment needs and criteria of suck risk averse investors. Ideal for investment horizons upwards of 3 months plus. This Asset Class is Arbitrage Schemes. This fits the bill for all such risk averse Investors.

Arbitrage Funds

Looking Back To Look Forward

If industry was optimistic in the beginning of January 2013 & had given an aggressive duration call; currently it is in a better position to capture higher yields & maybe a clearer direction of interest rates going forward. These rates might inch by 10-15 bps from now to March; however, it should be southward journey thereafter.

Arbitrage Funds

New Year Resolution – Keep It Simple & Uncomplicated

Let us as an industry take New Year Resolution of thinking investor centric & keeping things simple & uncomplicated. Industry’s biggest competition is from Fixed Deposits & other traditional debt market instruments like PPF, etc. If we focus all our energies to convince investors on why Mutual Fund schemes are better than Fixed Deposits, half our battle will be won.