Arbitrage funds tries to generate income by taking advantage of the arbitrage opportunities between cash and derivative market
06-Nov-2015 •Research Desk
I was reading your explanation on Arbitrage Fund. I have invested in Reliance Arbitrage Advantage fund. Is this fund similar in every way to an arbitrage fund, with same tax implication?
- Zakir A Contractor
Reliance Arbitrage Advantage Fund is an arbitrage fund. Arbitrage funds tries to generate income by taking advantage of the arbitrage opportunities between cash and derivative market. These funds are considered as equity funds for the purpose of taxation. If investments are sold after a year, you don't have to pay any tax on long-term capital gains.
