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OTHER EQUITY SCHEMES :

 

Arbitrage Funds

These invest simultaneously in the cash and the derivatives market and take advantage of the price differential of a stock and derivatives by taking opposite positions in the two markets (for e.g. stock and stock futures).

 

Multicap Funds

These funds can, theoretically, have a smallcap portfolio today and a largecap portfolio tomorrow. The fund manager has total freedom to invest in any stock from any sector.

 

Quant Funds

A typical description of this type of scheme is that ‘The system is the fund manager’, i.e. there are some predefined conditions based upon rigorous backtesting entered into the system and as and when the system throws ‘buy’ and ‘sell’ calls, the scheme enters, and/ or exits those stocks.