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Deutsche In India Rolls Out Arbitrage Fund

Tom Burroughes

14 August 2014

Deutsche Asset Management India, part of Germany’s , has launched an arbitrage fund in the form of an open-ended equity scheme portfolio, media reports said.  

"The DWS Arbitrage Fund is an ideal investment solution for investors, seeking returns through arbitrage opportunities that exist in the equity and derivatives markets," Deutsche AMC India head Suresh Soni was quoted as saying.

The new fund invests in arbitrage opportunities that may exist in the equity and derivatives markets. Its managers expects to predominantly invest in the cash futures arbitrage strategy: buying a stock in the cash market and selling it in the futures market, resulting in a hedge. The hedge means the fund portfolio is locked in a spread and therefore unaffected by price movements in the spot market and futures markets, according to the reports.