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Fund Radar: 6 debt funds with a tax edge

Fund houses revamp FoFs, introduce arbitrage for tax efficiency

6 debt funds that have become tax efficient

A newer trend is picking up where fund houses are tweaking their FoFs (Fund of Funds) by employing arbitrage strategies to provide tax-efficient alternatives for debt mutual funds. While four of these funds were previously debt-oriented funds, the other two had different strategies - one was an international fund, and the other a dynamic asset allocation fund. Now, these FoFs will be investing in a combination of debt-oriented funds and arbitrage funds. For those unfamiliar, arbitrage is a strategy that profits from price differences by simultaneously buying low in one market and selling h

This story is not available as it is from the Mutual Fund Insight March 2025 issue

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