The Invisible Hand: Algorithmic Arbitrage in Modern Markets

A common situation for a distributor occurs when a client compares a conservative Arbitrage Fund’s historical returns to a bank deposit and asks why the fund performance fluctuates even when the underlying strategy is...

Understanding Margin and Leverage in Portfolio Risk Management

Picture a client who approaches you with an HNI profile, eager to invest in an arbitrage-focused investment strategy within an AIF or SIF framework. They are confused as to why their capital requirement is restricted to...

Understanding Margin: The Safety Valve in Equity Futures Trading

Consider a client who walks into your office in Mumbai, eager to hedge their equity portfolio using Nifty index futures. They assume that if they want to control a position worth several lakhs, they only need to keep the...

Understanding Short Selling: Beyond the Basics of Arbitrage

A regular client calls from Mumbai, puzzled by how an Arbitrage Fund can consistently generate returns while the market experiences high volatility. They hear the term short selling mentioned in the news and wonder if...

Why Transaction Costs Make Theoretical Arbitrage Difficult in Practice

Consider a HNI client who notices a recurring price gap between an underlying Nifty 50 stock and its corresponding futures contract. They read online that arbitrageurs make risk-free money by buying the cheaper asset and...