It may suit you:
- In case you are largely risk-averse and are seeking relatively 'low risk' returns, unaffected by market cycles.
- Not seeking a fixed amount of income every month
- In an income tax bracket which benefits from the relatively 'tax-advantaged' status which arbitrage Funds enjoy compared to 'non equity-oriented Funds'.
It may not suit you:
- In case you are seeking returns equivalent to those offered by 'equity oriented Funds'. Over longer time periods, these may be higher than those offered by Arbitrage Funds... but are also more volatile.
- Seeking to earn a fixed amount of income every month
- In an income tax bracket which may not benefit from the relatively 'tax-advantaged' status which arbitrage Funds enjoy compared to 'non equity oriented Funds'.
Note: The product labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same
may vary post NFO when the actual investments are made.
Parag Parikh Arbitrage Fund
This product is suitable for investors who are seeking*
- To generate income by investing in arbitrage opportunities
- Predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market.
*Investors should consult their financial advisers if in doubt about whether the product is suitable