Arbitrage Funds Surge in Size

Mutual funds have gained favour this year as markets have scaled new highs. The asset sizes of many funds have surged owing to strong inflows and excellent performance of the funds in the last one year. Comparing equity and hybrid fund size change from March to October, we find some to have grown more than 10x. JM Balanced and Arbitrage Fund has grown from ₹89 crore to close ₹5,700 crore because of a new annual bonus option that has been added. Investors can invest, get the bonus and book losses on the original value invested as the NAV will decrease, which can be set off against gains f