Top 10 Good Arbitrage Funds That Are Performing Brilliantly in 2025

In the face of ongoing global economic uncertainty, investors are increasingly steering away from high-risk, high-volatility instruments and turning instead to low-risk trading strategies that prioritize capital protection and consistent returns. This shift in sentiment has led to a resurgence of interest in arbitrage mutual funds investment vehicles designed to deliver stability even when markets are turbulent. So what exactly makes arbitrage funds so compelling in 2025? At their core, arbitrage strategies capitalize on temporary pricing inefficiencies across related assets, markets, or instruments. These funds often involve simultaneous buying and selling of securities such as cash-futures arbitrage, index arbitrage, currency arbitrage, or convertible arbitrage to lock in near risk-free gains. Unlike traditional mutual funds that rise and fall with market sentiment, arbitrage mutual funds operate on a market-neutral basis, meaning they can generate risk-adjusted returns regardl...