Arbitrage schemes back on investors' radar after Franklin Templeton fiasco

The arbitrage category witnessed Rs 33,767 crore in net outflow during March

Arbitrage schemes are back on investors’ radar, with the category seeing Rs 6,587 crore of net inflows in April. This is because investors are looking for alternatives to debt schemes, in which investor sentiment has weakened following Franklin’s wind-up move.

“In March, the category had witnessed outflows on account of a temporary dislocation between the cash and futures markets, coupled with investors taking out money for their year-end liquidity needs. However, with markets stabilising, investors are looking at the category to park funds and avoid instruments with credit or other debt market-related risks,” said Radhika Gupta, CEO of Edelweiss MF.