"But now arbitrage fund will get impacted. The return in arbitrage fund might get impacted. Why? Because they buy in let's say future and have a position in the cash market. So they try to take the benefit of the opportunity of that arbitrage. But the cost has increased now. So the return henceforth you will see get impacted in the arbitrage fund."
By Finance With Sharan | February 1, 2026 | Correct
From video
BUDGET 2026 EXPLAINED : What Changed for Investors, Traders & Taxes | Nirmala Sitharaman | FWS 94 00:07:31 - 00:07:51
Interpreted Prediction
Returns in arbitrage funds will be impacted due to increased costs (likely referring to the STT increase).
AI Evaluation Notes
Evaluated on 2026-04-27
The Union Budget 2026-27, presented on February 1, 2026, increased the Securities Transaction Tax (STT) on futures from 0.02% to 0.05%. Financial analysts confirmed this hike directly increases transaction costs for arbitrage funds, leading to an estimated annualised return reduction of 25–30 basis points.

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