Arbitrage Funds

Arbitrage Funds look for making a bit more than the debt Funds by taking positions in the Cash & Equity markets; With permission of debt derivatives, more opportunities will be created in this segment. They are high Risk class.

A derivative is a futures contract traded on the exchange. Essentially a contract is an agreement with another to exchange a specified asset(physical/financial)at a pre-determened price on a specified future date. Commodity derivatives are just getting ppularised in India. Futures in the modern form date back to June 2000. Entry of Mutual Fund Products came by later.
Benchmark Derivative Fund(Dec 2004)
Kotak Equity Arbitrgae Fund (Sep 2005)
J M Arbitrage Advantage Fund (Jun 2006)
UTI SPrEAD(Jun 2006)
SBI Arbitrage Opportunities Fund (Oct 2006)
Standard chartered Arbitrage fund( Nov 2006)
ICICI Pru Equity & Income Optimiser(Dec 2006)
Lotus India Arbitrage fund (Apr 2007)