However, it can invest in equity and debt instruments as well as arbitrage opportunities using hedging positions. Whereas, the equity component offers growth and appreciation of capital, the upside can be constrained but resultantly, risk is also limited due to the inbuilt arbitrage component.
The arbitrage portion of these funds allows the biggest advantage as far as stable returns are concerned.
Essentially, it seeks to capitalize on pricing inefficiencies in the equities market's cash and derivative components. As a result, the fund's overall stock exposure is partially hedged, lowering volatility as compared to an aggressive hybrid fund with wholly unhedged equity exposure.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Israel passes law to deport families of attackers
ISRAEL's parliament passed a law early on Thursday that would allow it to deport family members of Palestinian attackers, including the country's own citizens, to the Gaza Strip or other locations.
German coalition govt in minority as Scholz sacks FM
AFTER Germany's government coalition collapsed in a dramatic fashion when Chancellor Olaf Scholz fired Finance Minister Christian Lindner of the pro-business Free Democrats, Scholz said he would lead the country with a minority government, despite calls from opposition leaders on Thursday for early elections.
US, China must get along, Xi tells Trump
Says in his message history shows \"China and the US benefit from cooperation and suffer from confrontation\"
Wind-fuelled wildfire in LA area puts 10,000 on evacuation notice
A fast-moving wildfire fueled by heavy winds was tearing through a community northwest of Los Angeles for a second day Thursday after destroying dozens of homes and forcing thousands of residents to flee when it exploded in size in only a few hours.
Modi to hold roadshow and rallies in J'khand on Nov 10
PRIME Minister Narendra Modi will hold a mega roadshow of about five km after addressing election rallies at Chandankiyari in Bokaro and Gumla on November 10.
Panchayat, civic body polls after 2 years in Gujarat
AFTER a two-year delay since the end of the last five-year term, Gujarat is set to hold panchayat and civic body elections.
Sharad blames BJP for 'lack' of Maha growth in last 10 yrs
IN the run-up to the November 20 Maharashtra Assembly elections, former union minister and NCP chief Sharad Pawar on Thursday alleged that after the BJP came to power in 2022, it has halted the state's growth leading to its decline in ranking from first to sixth in terms of development and industrial growth.
Biren hits back at Mizo CM over Kuki-Zo remarks
MANIPUR Chief Minister N Biren Singh said anyone challenging India's integrity would get a befitting reply.
J&K Assembly turns battleground
Sloganeering, scuffles, exchange of blows and House staff marshalling out BJP MLAS
Bypoll battle: Chouhan, Pilot hit campaign trail
AHEAD of bypolls on November 13 in Madhya Pradesh, BJP and Congress hit campaign trail in the state with focus on Budhni.
