 "ICICI Prudential MF")
Arbitrage funds, which buy in the cash markets and sell in the futures at higher prices, have been feeling the impact of the ongoing volatility, with futures trading at a discount to spot market prices. This led to spreads for such funds shrinking, with some fund houses suspending fresh flows into these schemes. This is to insulate new investors from the dislocation in the market.
Both Tata MF and ICICI Prudential MF had suspended fresh flows into their arbitrage schemes. ICICI MF has stopped accepting fresh investments till March 31.
“Opportunities in the arbitrage space have reduced drastically, in the Futures market.
