Arbitrage Fund Returns: Performance Insights & Market Trends
Understanding the Role of Arbitrage Funds in 2025 In 2025, the investment landscape is defined by global market volatility, unpredictable interest rate movements, and persistent geopolitical tensions. Against this backdrop, investors ranging from HNIs and family offices to institutional portfolio managers are increasingly turning to low-risk investment strategies that still deliver steady, risk-adjusted returns. One such strategy that is rapidly gaining momentum is the arbitrage fund, a market-neutral investment approach designed to profit from short-lived pricing inefficiencies between related markets or securities. By taking simultaneous long and short positions in the same or equivalent assets, these funds aim to lock in near risk-free gains, regardless of whether the market is bullish, bearish, or moving sideways. Unlike traditional mutual funds that rely on market direction for growth, arbitrage mutual funds are built to perform in all market conditio...