On 17 November 2025, analysis of Indian mutual-fund schemes highlighted arbitrage funds as particularly attractive for investors seeking stability and returns amid market turbulence. These funds exploit price gaps between cash and derivatives markets, and today the recommended schemes include Kotak Equity Arbitrage Fund and Nippon India Arbitrage Fund, thanks to improved roll-yield and offsetting of interest-rate risk by dynamic asset allocation. Portfolio strategists pointed out that arbitrage funds’ tax treatment as equity schemes makes them suitable for investors with a one-year plus horizon. Given the ongoing cash-futures gap in major indices, these funds are positioned to benefit while equity markets remain uncertain.