In the Budget 2026, Finance Minister Nirmala Sitharaman announced that STT on futures contracts would be raised to 0.05% from ...

The Budget 2026 hike in Securities Transaction Tax is expected to reduce arbitrage fund returns by about 0.5% next year, according to Capitalmind’s Deepak Shenoy. While retail investors may see ...

Arbitrage fund returns to take a 30-50 bps hit from Budget 2026's F&O tax hike, but post-tax advantage over debt funds intact ...

Arbitrage funds, which have gained popularity recently, will likely see some impact on its returns due to the STT hike on futures and options announced in Union Budget 2026. Analysts have suggested ...

According to estimates shared by Edelweiss Mutual Fund, the incremental increase in STT could lead to an annualised impact of around 0.32 percentage points on arbitrage fund returns.

Bond futures are financial derivative contracts that obligate the buyer and seller to transact a specified bond at a predetermined price and date. These contracts allow market participants to ...

While the increase is small in absolute terms, it has material implications for arbitrage funds, which depend on cash-futures spreads to generate returns.

Mohit Gang, CEO & Co-founder of Moneyfront, said that while arbitrage funds continue to offer a return advantage over liquid ...

Arbitrage funds are mutual funds that exploit price differences between cash and derivatives markets. They buy stocks in the ...