Arbitrage Schemes
KOTAK ARBITRAGE
I had started re recommending investments in Arbitrage Schemes as an asset class since February this year. This asset class made even more sense once DDT became uniform for all debt schemes (at 30% plus surcharge) as against nil DDT on arbitrage schemes. This scheme is treated as equity scheme for tax treatment & hence [...]
MOST IGNORED ASSET CLASS
I have been once again recommending arbitrage schemes since February 2011 onwards (Refer to my Blog Notes Dated: 08-02-2011- SILVERLINING TO OTHERWISE GLOOMY DEBT & EQUITY MARKETS & 21-04-2011- ASSET CLASS POST NEW DDT REGIME). For some strange reasons, investors are still ignoring this asset class (as is evident from the total AUM of [...]
ASSET CLASS POST NEW REGIME OF DIVIDEND DISTRIBUTION TAX
Under the new regime of Dividend Distribution Tax post June 01’2011, selection of debt schemes based on tax arbitrage will be a thing of the past. All debt schemes will have to compete with other direct investments like FDs, NCDs, etc based on pre tax returns generated (as tax treatment for all instruments will be [...]
ARBITRAGE SCHEMES – SILVER LINING TO THE OTHERWISE GLOOMY DEBT & EQUITY MARKETS
Arbitrage schemes were one of my favourite asset classes since their inception in the year 2004. This asset class had performed consistently with almost near 100% dividend track record on month on month or q on q basis. As this asset class thrives on Bull market runs with some volatility, I started recommending the same [...]