The STT hike on futures and options is set to marginally reduce returns for arbitrage and hybrid mutual funds, as higher transaction costs increase rollover and churn expenses. AMCs estimate an ...

According to estimates shared by Edelweiss Mutual Fund, the incremental increase in STT could lead to an annualised impact of ...

While the increase is small in absolute terms, it has material implications for arbitrage funds, which depend on cash-futures spreads to generate returns.

The Budget 2026 hike in Securities Transaction Tax is expected to reduce arbitrage fund returns by about 0.5% next year, ...

Arbitrage funds are mutual funds that exploit price differences between cash and derivatives markets. They buy stocks in the cash market and sell equivalent stock futures in the derivatives market.

Pairs trading and statistical arbitrage strategies represent a sophisticated suite of quantitative techniques designed to capitalise on pricing inefficiencies in financial markets. At their core, ...