If you’re worried about stock market ups and downs but still want better returns than fixed deposits, Groww Mutual Fund has launched a new option called the Groww Arbitrage Fund.
It is designed for investors who prefer lower risk while still benefiting from the equity market.
What is the Groww Arbitrage Fund?
This is an open-ended mutual fund, which means you can invest anytime during the offer period. As per a report by CNBC TV18, the New Fund Offer (NFO) started on April 8 and will remain open until April 22, 2026.
You can begin investing with just ₹500, making it accessible for small investors. Another big advantage is that there is no exit load, so you can withdraw your money anytime without extra charges.
How Does This Fund Work?
The fund follows a simple strategy called “Long Cash – Short Futures.”
In easy terms, the fund manager buys shares in the stock market and at the same time sells them in the futures market. This helps the fund earn from the price difference between the two markets.
The key benefit is that returns are not heavily dependent on whether the market goes up or down. The focus is on capturing small price gaps, which helps reduce risk compared to regular equity funds.
Tax Benefits You Should Know
This fund invests at least 65% in equities, so it is treated like an equity fund for tax purposes.
If you stay invested for more than one year, you may pay lower tax compared to debt funds or fixed income options. This makes it a good choice for investors looking for tax-efficient returns.
Who Should Consider Investing?
This fund is suitable for people who want relatively stable returns with lower risk and are willing to stay invested for at least one year.
However, it’s important to understand that it is not completely risk-free. Like all market-linked investments, it still carries some level of market and liquidity risk.
The fund is managed by Paras Matalia, Sashi Kumar, and Wilfred Gonsalves, and it tracks the Nifty 50 Arbitrage TRI benchmark.
