In the Budget 2026, Finance Minister Nirmala Sitharaman announced that STT on futures contracts would be raised to 0.05% from ...

The STT hike on futures and options is set to marginally reduce returns for arbitrage and hybrid mutual funds, as higher ...

According to estimates shared by Edelweiss Mutual Fund, the incremental increase in STT could lead to an annualised impact of ...

The Budget 2026 hike in Securities Transaction Tax is expected to reduce arbitrage fund returns by about 0.5% next year, according to Capitalmind’s Deepak Shenoy. While retail investors may see ...

Arbitrage funds, which have gained popularity recently, will likely see some impact on its returns due to the STT hike on futures and options announced in Union Budget 2026. Analysts have suggested ...

Arbitrage fund returns to take a 30-50 bps hit from Budget 2026's F&O tax hike, but post-tax advantage over debt funds intact ...

While the increase is small in absolute terms, it has material implications for arbitrage funds, which depend on cash-futures spreads to generate returns.

The hike in securities transaction tax (STT) on futures and options (F&O) trades is set to pinch arbitrage funds — the short-term investment option preferred by investors to park extra cash. Experts ...

Arbitrage funds are mutual funds that exploit price differences between cash and derivatives markets. They buy stocks in the cash market and sell equivalent stock futures in the derivatives market.