Economic TimesLean R·
Experts advise caution as CAS fuels arbitrage fund NAV volatility
Mumbai: Arbitrage fund investors were surprised Monday to see the net asset values (NAV) of their portfolios surge an average 0.46% in a single day, translating into an annualised yield of 167%. What explains such drastic movements in an asset class that barely yields 7% a year or about 0.02% a day? Well, this happened on the first day after the introduction of the closing auction session (CAS) for F&O stocks by the National Stock Exchange (NSE).Fund managers said teething troubles with the…
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