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

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

In the Union Budget 2026, Finance Minister Nirmala Sitharaman announced an increase in STT rates for futures to 0.05% from 0.02% earlier and for options to 0.15% from 0.1%/0.125%, aimed at curbing ...

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.

Investment advisers continue to recommend arbitrage funds, say that the reduction in returns won't affect the lucrativeness of the category.

Arbitrage funds are mutual funds that exploit price differences between cash and derivatives markets. They buy stocks in the ...

The recent increase in securities transaction tax (STT), announced by the Finance Minister Nirmala Sitharaman in the Union Budget 2026, is expected to reduce returns from arbitrage funds by around ...

Union Budget 2026–27 raises STT on derivatives, impacting F&O trading and mutual funds. Capital expenditure and manufacturing-led growth remain priorities.

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 ...

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 ...