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 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.?
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.
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.
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 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.
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)
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
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?
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?
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? 😅
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.
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
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.
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
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.
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You're voice clear and concept is clear. Keep doing it Mr vp. Thanks
Probably the best video on arbitrage funds!
Very absorbing to learn about arbitrage fund
Thanks! Glad the content helped in learning something new
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👌
Glad it was helpful! Thanks for your good wishes
@@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.?
Sir. U always provide newer info on topics which i thought I know .. Thanks a lot
Most welcome Ramya Sri. Glad you found it useful
Another gem 💎
Thanks
Fantastic explanation this! Thanks Shankar.
Would you recommend moving the emergency fund from liquid to arbitrage fund?
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.
Happy to see you sir
Excellent Explanation.. Thanks a ton..
Perfect video
Thanks. Glad you liked it!
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.
Yes, more money closes down arbitrage opportunities. Thanks for the appreciation
How
Nice presentation 👌
Very useful video..Hope to see more such good contents .
Thanks
From where to know current "SPREAD" of arbritage fund?
Nice background
Nice topic 👍
Glad you liked it
Informative... and made very interesting
Glad you liked it!
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.
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.
@@ETMONEY Yes, I was referring to far and few opportunities only.
What does it mean then, if it doesn't lead to low performance?
Also, it would be great if you can make a video on comparing correlation of different debt fund types with equity.
@@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.
Wonderful presentation
Very nicely explained
Good job 👍🆗
Thanks ✌
Is arbitrage funds alternative to FD?
Very informative..
Glad you liked it
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)
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
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?
Equity fund. Market Take over.
Reassurance for Quality insurance
Out stander in buy. Makes new title control. In every form that's mutual.
great 👍
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?
Sir can normal trader do this
Which is a better option for long term debt fund or arbitrage fund ..?
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?
good show....thanks
Hello sir i want to invest 25,000 which fund should i invest arbitrage fund or liquid fund ?
Liquid fund if you want 0% risk.
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? 😅
Can you make a video on NPS when we change allocation between G E C ..what happens to current fund on these
Sir, kindly explain Floating Rate Fund category... Thanks
+1
Can we invest a lumpsump amount or should we take a sip route for risk mitigation
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.
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
1) I guess settlement will require more money as leverage will be gone.
Does it mean that we should invest when VIX is low hoping that when volatility increases the fund will produce better returns?
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.
@@ETMONEY understood. Thanks for explaining and very good video.
@@gauravpande4228 Most welcome
Can this be implemented by traders too?
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
Is it right time to invest in arbitrage funds?
Please make a video on Futures and Options..I found this concept hard as I do not understand much of Futures vs options
Why to invest in fund houses when it's easy to deploy it ourselves by spotting opportunity using API and execution through bots ?
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.
Sir please information hindi me दो
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Get to learn new lesson.
Great to know that
With the market falling owing to the Ukraine crisis.. should arbitrage funds over a 6 months period be a okay option ?
Too much jargon
आपका दिन मंगलमय हो sir mai aapse important baat karna chhta hu how to contact you