Stock market this week ends volatile-Here are the top gainers and losers to track
Arbitrage funds witnessed a notable 33% rise in inflows during May, reflecting growing investor interest in low-risk and tax-efficient investment options amid evolving market dynamics. These hybrid mutual funds, which leverage the price differences between cash and derivatives markets to generate returns, are gaining popularity for their ability to offer stability along with the potential for short-term gains. The significant increase in inflows suggests that more investors are recognizing arbitrage funds as a smart alternative to traditional fixed-income instruments, especially given their equity taxation advantage when held for more than a year. With their relatively lower volatility and the benefit of being taxed like equity mutual funds, arbitrage funds have emerged as an attractive choice for conservative investors seeking capital preservation with better post-tax returns.
In times when markets may be experiencing temporary fluctuations, arbitrage funds provide a balanced route by capitalizing on market inefficiencies without taking directional equity exposure. The surge in inflows also reflects growing awareness among retail and institutional investors about the role such funds can play in diversifying portfolios and managing liquidity needs effectively. Supported by their consistent performance and efficient risk-return profile, arbitrage funds continue to draw attention from those looking to make the most of short-term idle funds while maintaining a low-risk stance. This trend is expected to sustain as investors increasingly prioritize safety, tax efficiency, and liquidity, making arbitrage funds a relevant and reliable component of a well-rounded investment strategy.
The IPO of Oswal Pumps received a positive response from investors, being oversubscribed by 0.34 times, reflecting growing confidence in the company’s business model and future potential. Known for its strong presence in the water pump and motor manufacturing industry, Oswal Pumps aims to utilize the funds raised to enhance its production capacity, invest in advanced technology, and support working capital needs. The oversubscription indicates healthy demand, particularly from retail and HNI investors, who were drawn to the company’s consistent performance, trusted brand, and expansion plans. With a solid track record, strong distribution network, and focus on innovation, Oswal Pumps is well-positioned to capitalize on growth opportunities in both domestic and international markets. This successful IPO marks an important milestone in the company’s journey and paves the way for long-term value creation.
Baroda BNP Paribas AMC, ICICI Prudential AMC, and Groww AMC have launched new fund offers (NFOs), each offering investors distinct opportunities aligned with emerging market trends. Baroda BNP Paribas has introduced the Health & Wellness Fund – Growth Direct Plan, aiming to capitalize on the rising demand in the healthcare and wellness sector by investing in companies focused on pharmaceuticals, diagnostics, and lifestyle improvement.
ICICI Prudential's Nifty Top 15 Equal Weight Index Fund – Growth Direct Plan offers exposure to India's top 15 blue-chip companies with an equal-weight strategy, providing balanced diversification and reduced concentration risk. Meanwhile, Groww AMC has launched the Nifty India Internet ETF FoF – Growth Direct Plan, targeting the booming digital and internet-based economy by investing in sectors such as e-commerce, fintech, and technology services. These NFOs present attractive opportunities for investors looking to diversify their portfolios with sector-focused and growth-oriented strategies.
Kuvera is a free direct mutual fund investing platform. Unless otherwise stated data sourced from BSE, NSE and kuvera.
