If you want better returns than a fixed deposit but feel worried about stock market ups and downs, there’s a new option to consider.
Groww Mutual Fund has launched the Groww Arbitrage Fund, designed for investors who prefer lower risk while still benefiting from the equity market.
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What is Groww Arbitrage Fund?
As reported by CNBC TV18, this is an open-ended mutual fund scheme. Its New Fund Offer (NFO) started on April 8, 2026, and will remain open till April 22, 2026.
You can begin investing with just ₹500, making it accessible for small investors as well. Another big advantage is that there is no exit load, so you can withdraw your money anytime without extra charges.
How Does This Fund Work?
The fund follows a simple strategy called “Long Cash – Short Futures.”
In easy terms:
The fund buys shares in the cash market
At the same time, it sells those shares in the futures market
This helps the fund earn profit from the price difference between the two markets. The key benefit is that returns are less dependent on market direction, whether it goes up or down.
Tax Benefits You Should Know
This fund keeps at least 65% investment in equities, so it is treated as an equity fund for tax purposes.
If you invest for more than 1 year, you may pay lower tax compared to debt funds or fixed deposits
This makes it a good option for tax-efficient investing
Who Should Invest in This Fund?
This fund is suitable for:
Investors with a minimum 1-year investment horizon
People looking for low-risk returns better than FDs
Those who want to avoid high market volatility
However, remember that it is not completely risk-free. It still carries some market and liquidity risks.
The fund is managed by Paras Matalia, Sashi Kumar, and Wilfred Gonsalves, and it tracks the Nifty 50 Arbitrage TRI benchmark.