Groww Mutual Fund has launched the Groww Arbitrage Fund, targeting investors seeking steady, low-volatility returns. Open for subscription from April 8 to April 22, the fund employs a 'long cash–short futures' strategy, which entails buying stocks in the cash market while simultaneously selling equivalent futures contracts to capitalize on price discrepancies. This approach aims to reduce exposure to market fluctuations. The fund will maintain over 65% exposure to equity and equity-related instruments to qualify for equity-oriented tax benefits, while up to 35% can be allocated to debt and money market instruments for liquidity. The fund is managed by Paras Matalia, Shashi Kumar, and Wilfred Gonsalves. Investors can enter with a minimum investment of ₹500 and enjoy a redemption timeline of three working days. However, while the fund is positioned as lower-risk, potential investors should be aware of market, liquidity, and operational risks. It is best suited for those looking for a stable investment option with a minimum one-year horizon.