New Delhi, June 14 -- Arbitrage funds witnessed a notable 33% rise in inflows during May, reflecting growing investor interest in low-risk and tax-efficient investment options amid evolving market dynamics. These hybrid mutual funds, which leverage the price differences between cash and derivatives markets to generate returns, are gaining popularity for their ability to offer stability along with the potential for short-term gains. The significant increase in inflows suggests that more investors are recognizing arbitrage funds as a smart alternative to traditional fixed-income instruments, especially given their equity taxation advantage when held for more than a year. With their relatively lower volatility and the benefit of being taxed ...