Suggested InvestmentHorizon: 3 month Time taken to doublemoney: 9.7 YearsReturns from arbitrage schemes have been almost similar to that of liquid schemes. In the past one year, arbitrage schemes have returned 3.01% on an average, while liquid schemes have generated 3.54%. In the past three months, arbitrage schemes have generated 2.68% as against 2.96% by liquid funds. Investment advisors expect returns from arbitrage schemes to improve in the months ahead. “There is heightened volatility in the equity markets which will lead to higher spread between spot and future prices, thereby generating higher returns,” says Viral Bhatt, founder, Money Mantra. He expects arbitrage funds to generate about 50-100 basis points higher returns than liquid funds over the next three to six months.