The appeal of arbitrage funds stems from the reasonably stable returns and their taxation as equity funds. : Pre-configured baskets of stocks & ETFs that you can invest in with a single click. Developed by hedge funds, global asset management companies, experienced wealth management firms and portfolio managers. Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas Arbitrage funds are receiving substantial inflows of late, which is good from an overall perspective, as it suggests a growing market. However, one needs to have the right understanding and expectation while getting into this category of funds.