Arbitrage Funds: How They Work | Who Should Invest? | ETMONEY

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  • เผยแพร่เมื่อ 23 ธ.ค. 2024

ความคิดเห็น • 80

  • @PrabaPrakash
    @PrabaPrakash 3 ปีที่แล้ว +4

    You're voice clear and concept is clear. Keep doing it Mr vp. Thanks

  • @aeroant
    @aeroant 2 ปีที่แล้ว +1

    Probably the best video on arbitrage funds!

  • @prakashraghunathan2685
    @prakashraghunathan2685 3 ปีที่แล้ว +9

    Very absorbing to learn about arbitrage fund

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      Thanks! Glad the content helped in learning something new

  • @kulkarnirajendra
    @kulkarnirajendra 3 ปีที่แล้ว +4

    Another gem 💎

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Thanks

  • @snklpktr
    @snklpktr 3 ปีที่แล้ว +3

    Would you recommend moving the emergency fund from liquid to arbitrage fund?

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Everyone's risk, situation & goals are different so this can't be generalized. We have, however, done a comparison in this video to this effect.

  • @dtube123
    @dtube123 3 ปีที่แล้ว +2

    Happy to see you sir

  • @ramyasri6093
    @ramyasri6093 3 ปีที่แล้ว +1

    Sir. U always provide newer info on topics which i thought I know .. Thanks a lot

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      Most welcome Ramya Sri. Glad you found it useful

  • @bububabilove
    @bububabilove 4 หลายเดือนก่อน

    From where to know current "SPREAD" of arbritage fund?

  • @sanketjain9320
    @sanketjain9320 3 ปีที่แล้ว +2

    Hi. Why do you say that the arbitrage funds perform poorly in a bear market? As you showed in scenario 2, they can perform well in the bear market too.

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Hi. Can you please be more specific about this? In the entire video, we used the word "bear market" only once and what we said was: "More prominently, its a bear market where it is common to see the future prices of many stocks trading at a discount to the spot price .. which allows for far and few arbitrage opportunities". In our opinion, fewer opportunities does not mean poor performance .. so appreciate if you can clarify your understanding in detail.

    • @sanketjain9320
      @sanketjain9320 3 ปีที่แล้ว

      @@ETMONEY Yes, I was referring to far and few opportunities only.
      What does it mean then, if it doesn't lead to low performance?

    • @sanketjain9320
      @sanketjain9320 3 ปีที่แล้ว

      Also, it would be great if you can make a video on comparing correlation of different debt fund types with equity.

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      ​@@sanketjain9320 Oh, that's explainable. Low opportunities is just one side of the coin. The other side is the amount of money chasing arbitrage. You see, if opportunities are low but money moving into arbitrage is relatively lower, then arbitrage funds continue to make money. It's demand and supply, like everything else.

  • @sachin_2601
    @sachin_2601 3 ปีที่แล้ว +7

    A good informative presentation. I had read only the definition about Arbitrage funds but this video gave in depth, complete knowledge on the subject. Thank you Shankar sir and all as always for amazing topic and educating us👌

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      Glad it was helpful! Thanks for your good wishes

    • @yaniv9
      @yaniv9 3 ปีที่แล้ว

      @@ETMONEY I have invested in few mutual funds. I invested by seeing ETM ranking and value research rating. One of the examples is L&T midcap fund. Now ETM ranking is 17/19 and VR rating is 2 star. Now what should I do?
      There is no option of STP and SWP in ET money app. Tell me when and how to do SWP.?

  • @lakshyasinghkashyap5045
    @lakshyasinghkashyap5045 ปีที่แล้ว

    Fantastic explanation this! Thanks Shankar.

  • @SmartYatri
    @SmartYatri 3 ปีที่แล้ว +3

    Perfect video

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      Thanks. Glad you liked it!

  • @ajsujit
    @ajsujit 2 ปีที่แล้ว +2

    Will more money invested in arbitrage fund mean less returns? Because in arbitrage between exchanges aggressive buying/selling can impact the share price and arbitrage opportunity will get closed.
    Thanks for great video.

    • @ETMONEY
      @ETMONEY  2 ปีที่แล้ว

      Yes, more money closes down arbitrage opportunities. Thanks for the appreciation

    • @vloggerprakhar8193
      @vloggerprakhar8193 ปีที่แล้ว

      How

  • @surajk508
    @surajk508 6 หลายเดือนก่อน

    Is arbitrage funds alternative to FD?

  • @krishnamoorthysridhar8536
    @krishnamoorthysridhar8536 ปีที่แล้ว

    Excellent Explanation.. Thanks a ton..

  • @abhinavsingh3045
    @abhinavsingh3045 9 หลายเดือนก่อน

    Hey what if I want to withdraw my money from a liquid fund on the 100th day. How does that work? Can we do that?

  • @venkatasudheer3299
    @venkatasudheer3299 3 ปีที่แล้ว +2

    Nice topic 👍

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Glad you liked it

  • @sreejithrkrishnan3171
    @sreejithrkrishnan3171 3 ปีที่แล้ว

    Which is a better option for long term debt fund or arbitrage fund ..?

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      Hi, we cannot generalize but a better answer can be given if the conditions under which you need the comparison can be made known. Specifically .. is it a low interest rate cycle or a high interest rate cycle? What are the 10Y bond yields? If it a rising stock market, flat stock market or falling stock market? What are the arbitrage spreads? What's the YTM on long term G-Secs? What's the average duration on long term debt funds?

  • @vloggerprakhar8193
    @vloggerprakhar8193 ปีที่แล้ว

    Sir can normal trader do this

  • @srijitmajumdar4724
    @srijitmajumdar4724 3 ปีที่แล้ว +1

    Very useful video..Hope to see more such good contents .

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Thanks

  • @raju2009
    @raju2009 หลายเดือนก่อน

    Nice presentation 👌

  • @chandraprakashsinha3425
    @chandraprakashsinha3425 3 ปีที่แล้ว +2

    Nice background

  • @kanakarajsatyababu440
    @kanakarajsatyababu440 3 ปีที่แล้ว +1

    Informative... and made very interesting

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Glad you liked it!

  • @uttamsingh6712
    @uttamsingh6712 3 ปีที่แล้ว +1

    Good job 👍🆗

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Thanks ✌

  • @sumitjadhav7989
    @sumitjadhav7989 10 หลายเดือนก่อน

    Hello sir i want to invest 25,000 which fund should i invest arbitrage fund or liquid fund ?

    • @AnilSingh-h3v7i
      @AnilSingh-h3v7i 6 หลายเดือนก่อน

      Liquid fund if you want 0% risk.

  • @gauravpande4228
    @gauravpande4228 3 ปีที่แล้ว +1

    Does it mean that we should invest when VIX is low hoping that when volatility increases the fund will produce better returns?

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Maybe one should look at it differently. What we mean is - the utility of arbitrage funds is as fund parking vehicles/emergency fund for an 8 to 15 month period. These are certainly not investment vehicles and by speculating on VIX scores, an investor is only bringing more unpredictability to the fund. Afterall, none can predict when volatility might increase or decrease.

    • @gauravpande4228
      @gauravpande4228 3 ปีที่แล้ว +1

      @@ETMONEY understood. Thanks for explaining and very good video.

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      @@gauravpande4228 Most welcome

  • @siva155b
    @siva155b 2 ปีที่แล้ว

    Wonderful presentation

  • @shakthis_view
    @shakthis_view 3 ปีที่แล้ว +1

    Very informative..

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

      Glad you liked it

  • @shrutikumari6727
    @shrutikumari6727 9 หลายเดือนก่อน

    Very nicely explained

  • @154198465
    @154198465 2 ปีที่แล้ว +1

    Can we invest a lumpsump amount or should we take a sip route for risk mitigation

  • @darshanshah4687
    @darshanshah4687 3 ปีที่แล้ว +1

    Sir, kindly explain Floating Rate Fund category... Thanks

  • @bansalg9467
    @bansalg9467 2 ปีที่แล้ว +2

    thanks for sharing this informative video. Just wanted to understand one more thing. i checked kotak arbitrage fund and icici pru as well .. both arbitrage funds with largest AUMs show falling trend annual returns.. is it because of debt element loosing its power to throw returns to investor these days or some other issue because it is only reducing per year except 2018 ? ( source : value research website, period 2014 to 2021)

    • @ETMONEY
      @ETMONEY  2 ปีที่แล้ว +1

      Hi, we covered large parts of that in the video. To summarize : 1. arbitrage funds schemes get better spreads in bull markets, 2. as size of arbitrage schemes (as a category) becomes larger with higher flows, spreads in the arbitrage market narrows. This is a self-correcting cycle

  • @PassarinhoBabbu
    @PassarinhoBabbu 3 หลายเดือนก่อน

    Thanks for sharing such valuable information! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). Could you explain how to move them to Binance?

  • @stains9678
    @stains9678 ปีที่แล้ว +2

    Equity fund. Market Take over.
    Reassurance for Quality insurance
    Out stander in buy. Makes new title control. In every form that's mutual.

  • @neelamvalecha4837
    @neelamvalecha4837 8 หลายเดือนก่อน

    good show....thanks

  • @raghuyaduvanshi1502
    @raghuyaduvanshi1502 4 หลายเดือนก่อน

    great 👍

  • @msb4632
    @msb4632 3 ปีที่แล้ว +1

    Can you make a video on NPS when we change allocation between G E C ..what happens to current fund on these

  • @jiti5034
    @jiti5034 2 ปีที่แล้ว

    Few questions:
    1) Do Stock futures settle in Cash or actual shares? if they settle in shares then why they need to close the positions on last day ... auto settlement will happen wont it ? a swap will be made
    2) Stock/ Stock futures arbitrage returns are they that much bigger than risk free FD returns? if Yes generally by what % because that will determine whether it is really worth doing it ( specially at retail level)
    3) Some people talk about instead of using physicals stock position one leg can be synthetic futures.. does it work at retail level? and considering , bid ask spreads on options , slippage lack of Margin offset

    • @ajsujit
      @ajsujit 2 ปีที่แล้ว

      1) I guess settlement will require more money as leverage will be gone.

  • @FrancoiseSensibaugh
    @FrancoiseSensibaugh 3 หลายเดือนก่อน

    Thank you so much for your hard work! 😊 Just a small off-topic question: 😅 I have a set of words 🤷‍♂️. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Can someone explain what this is? 😅

  • @anujoybardhan
    @anujoybardhan 2 ปีที่แล้ว

    Hi, can someone explain when this type of funds can give negative return?...I think Shankar did mention on a very short term it could be negative, but why so, all three movement of stock was considered in video all of which resulted in profit

  • @matric8130
    @matric8130 2 ปีที่แล้ว

    Why to invest in fund houses when it's easy to deploy it ourselves by spotting opportunity using API and execution through bots ?

    • @ETMONEY
      @ETMONEY  2 ปีที่แล้ว +1

      The method/strategy discussed in the video is for people who cannot create bots, cant develop APIs, dont have huge capital to execute trades, don't have regulatory licenses, don't have a trading terminal and don't have researcher to tell which stocks to pick.

  • @saqawatkhan5880
    @saqawatkhan5880 2 ปีที่แล้ว

    Can this be implemented by traders too?

  • @fanofkimi
    @fanofkimi 3 ปีที่แล้ว

    Sir,
    Please make a educational video about monthly RDs vs Monthly SIP
    Many of us are investing in monthly RDs so a better return if possible via SIP with a level of risk can still be taken.

  • @sharathbhat1720
    @sharathbhat1720 3 ปีที่แล้ว

    Please make a video on Futures and Options..I found this concept hard as I do not understand much of Futures vs options

  • @pavankumar-pt8mu
    @pavankumar-pt8mu 3 ปีที่แล้ว

    Is it right time to invest in arbitrage funds?

  • @akar.3997
    @akar.3997 3 ปีที่แล้ว +2

    Sir please information hindi me दो

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

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    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว

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      th-cam.com/channels/zWtyDo9KmEC1JoAqa1LIEw.htmlvideos

  • @shoolpanisinghbess9156
    @shoolpanisinghbess9156 2 ปีที่แล้ว

    With the market falling owing to the Ukraine crisis.. should arbitrage funds over a 6 months period be a okay option ?

  • @yourpal.
    @yourpal. 3 ปีที่แล้ว +2

    Get to learn new lesson.

    • @ETMONEY
      @ETMONEY  3 ปีที่แล้ว +1

      Great to know that

  • @utkarshpant5297
    @utkarshpant5297 2 หลายเดือนก่อน

    Too much jargon

  • @vloggerprakhar8193
    @vloggerprakhar8193 ปีที่แล้ว

    आपका दिन मंगलमय हो sir mai aapse important baat karna chhta hu how to contact you