UTI Mutual Fund Files Draft for Income Plus Arbitrage Active Fund of Fund

UTI Mutual Fund filed a draft offer document with SEBI yesterday, February 24, 2025, for the launch of UTI Income Plus Arbitrage Active Fund of Fund, an open-ended Fund of Funds (FoF). The scheme will invest in a combination of debt-oriented mutual funds and arbitrage mutual funds​.

Fund Details

  • NFO Price: ₹10 per unit
  • Minimum Investment: ₹1,000 (and multiples of ₹1 thereafter)
  • Benchmark: 60% CRISIL Short Duration Debt A-II Index + 40% Nifty 50 Arbitrage TRI
  • Liquidity: Investors can buy and redeem units at applicable Net Asset Value (NAV) on any business day
  • Entry & Exit Load: Nil
  • Fund Manager: Anurag Mittal​

The fund aims to generate long-term capital appreciation by investing in debt and arbitrage mutual funds. However, there is no guarantee of achieving this objective​.

Asset Allocation

The scheme will invest within these ranges:

  • Debt-oriented mutual funds: 35%-65%
  • Arbitrage mutual funds: 35%-65%
  • Money market instruments: 0%-5%​

The fund will not invest in derivatives, credit default swaps, REITs, InvITs, or securitized debt. It also does not allow stock lending or short selling​.

Plans & Expenses

  • Available Plans: Only Growth Option (no IDCW payouts)
  • Expense Ratio: Up to 2.00% of daily net assets
  • Additional Expenses: Up to 0.05%
  • Minimum SIP Investment: ₹500 for daily, weekly, and monthly SIPs​

NFO Period

While the UTI Income Plus Arbitrage Active Fund of Fund has been filed with SEBI, the exact dates for the New Fund Offer (NFO) are yet to be announced. However, as per regulatory norms, the NFO will remain open for a minimum of 3 working days and a maximum of 15 calendar days. The fund house will provide updates once the final dates are confirmed​. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NFO Alert: Franklin India Mutual Fund Launches Low Duration Fund

Franklin Templeton Mutual Fund is introducing the Franklin India Low Duration Fund, an open-ended low-duration debt scheme. The New Fund Offer (NFO) will be open from February 25, 2025, to March 5, 2025. The scheme will reopen for continuous purchases and redemptions on March 7, 2025.

Plans, Options & Other Details

  • Plans: Regular and Direct
  • Options: Growth and Income Distribution cum Capital Withdrawal (IDCW)
  • Minimum Investment: ₹5,000 during NFO, ₹1,000 for additional purchases
  • Exit Load: Nil
  • Lock-in Period: NA
  • Riskometer: Moderate
  • Benchmark: NIFTY Low Duration Debt Index A-I

Annual recurring expenses, including fund management and operational costs, may go up to 2% of daily net assets as per SEBI guidelines.

Investment Objective & Strategy

The scheme aims to generate income through investments in debt and money market instruments, maintaining a Macaulay duration between 6 to 12 months. This means the portfolio will consist of short-term debt instruments to manage risk and liquidity. There is no guarantee of returns.

Where Will the Fund Invest?

  • Debt securities & money market instruments: 0% – 100%
  • Securitized debt: Up to 50%
  • Repo in corporate debt securities: Up to 10%
  • No investment in: Equity, REITs, InvITs, foreign securities, or credit default swaps

The fund’s performance will be measured against the NIFTY Low Duration Debt Index A-I. Since this is a new scheme, past performance data is not available.

Risk Classification

The scheme falls under Potential Risk Class B-III, indicating relatively high interest rate risk and moderate credit risk. Investors should assess their risk tolerance before investing.

Final Notes

Investors should read the scheme document carefully before making any investment decisions.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NFO Alert: Bandhan Mutual Fund Launches CRISIL IBX 10:90 Gilt Plus SDL Index – Dec 2029 Fund

The Bandhan CRISIL IBX 10:90 Gilt Plus SDL Index – Dec 2029 Fund is an open-ended target maturity index fund that primarily invests in government securities (G-Secs) and state development loans (SDLs). 

It aims to mirror the performance of the CRISIL IBX 10:90 Gilt + SDL Index – Dec 2029, with a passive investment approach to minimize active fund management.

NFO Details

The New Fund Offer (NFO) details are as follows:

  • Opens: February 25, 2025
  • Closes: March 5, 2025
  • Allotment Date: March 5, 2025
  • Maturity Date: December 31, 2029
  • Face Value: ₹10 per unit
  • Fund Manager: Brijesh Shah
  • Risk Level: Moderate
  • Plans: Growth and IDCW
  • Benchmark: CRISIL-IBX 10:90 Gilt + SDL – Dec 2029 

Investment Requirements

  • Minimum Investment: Minimum ₹1,000, in multiples of ₹1 thereafter
  • Additional Purchases: ₹1,000 minimum
  • SIP: Starts at ₹100 per installment (minimum 6 installments)
  • SWP (Systematic Withdrawal Plan): ₹200 per withdrawal
  • STP (Systematic Transfer Plan): ₹500 per transfer

Objective & Asset Allocation

The scheme focuses on investing in SDLs and G-Secs in a predefined ratio, maintaining its composition in line with the benchmark. Since it follows a passive approach, there is minimal fund manager intervention. Asset allocation is as follows:

  • State Development Loans (SDLs): 90%
  • Government Securities (G-Secs): 10%
  • Cash & Money Market Instruments: 0% – 5%

The portfolio will maintain duration alignment with the index and hold securities until maturity.

Liquidity & Redemption

  • Units can be bought or sold on any business day at NAV-based prices.
  • Redemption proceeds will be paid within three working days from the date of the request.
  • In case of delay, an interest compensation of 15% per annum will be applicable from the fourth day.

Taxation & Risk

  • Tax Treatment: Classified as a debt mutual fund, meaning capital gains are taxed based on the investor’s income slab.
  • Risk Level: Moderate, as per the risk-o-meter.

Since this is a target maturity fund, all units will automatically mature on December 31, 2029, and be redeemed at the prevailing NAV. The NAV will be published daily on the AMFI and Bandhan Mutual Fund websites after 11:00 PM on business days.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HSBC Mutual Fund Announces IDCW Payouts Across 4 Schemes

HSBC Mutual Fund has declared income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option for 4 of its schemes. The record date for this is February 25, 2025, meaning investors holding units in these schemes on this date will receive the payout.

Details of Income Distribution

The announced distribution per unit varies across the schemes. Here’s a breakdown of the payouts:

      • Direct Plan – ₹0.240 per unit
      • HSBC Aggressive Hybrid Fund IDCW – ₹0.210 per unit
      • Direct Plan – ₹1.500 per unit
      • Regular Plan – ₹1.500 per unit
      • Direct Plan – ₹0.155 per unit
      • HSBC Balanced Advantage Fund IDCW – ₹0.135 per unit
      • Direct Plan – ₹3.900 per unit
  • HSBC Flexi Cap Fund IDCW – ₹3.750 per unit

Record Date and Distribution Process

The record date determines which investors qualify for the payout. Those holding units in the IDCW option as of February 25, 2025, will receive the declared amounts per unit. After the distribution, the Net Asset Value (NAV) of the schemes will adjust accordingly.

IDCW vs Growth Option

The IDCW option provides payouts at intervals but does not increase the overall returns of the investment.

Tax Considerations

Payouts under IDCW are taxed as per the investor’s applicable tax slab, as they are treated as dividends rather than capital gains. Investors should factor this into their decision when selecting an IDCW plan.

Fund-Specific Observations

The HSBC Flexi Cap Fund has the highest payout among the four, while the Balanced Advantage Fund has the lowest. The Asia Pacific (Ex-Japan) Dividend Yield Fund has the same distribution for both its direct and regular plans.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

US Pushes to Reshore Generic Drug Manufacturing: Potential Impact on Indian Pharma

The US Congress is making a renewed push to bring generic drug manufacturing back home. Congresswoman Claudia Tenney (NY-24) has reintroduced the Producing Incentives for Long-term Production of Lifesaving Supply of Medicines (PILLS) Act, a legislative initiative designed to encourage pharmaceutical companies to relocate their generic drug production to the United States.

The move is primarily driven by concerns over the heavy dependence on India and China for the supply of essential medicines. These nations have become dominant players in the generic drug industry due to their lower production costs and relatively relaxed manufacturing standards. However, this centralisation has raised fears of potential supply chain disruptions and compromised drug quality.

Key Features of the PILLS Act

The PILLS Act proposes a series of tax incentives for pharmaceutical manufacturers that shift their entire production process—including raw material sourcing, drug formulation, and quality testing—to the United States. The goal is to reduce America’s reliance on foreign suppliers while enhancing national security, creating domestic jobs, and ensuring a stable supply of high-quality generic medicines.

Congresswoman Tenney emphasised the urgency of the initiative, stating: “Drug manufacturing has moved overseas, putting American jobs and the security of our essential medical supply chains at risk. By strengthening tax incentives for domestic drug production, the PILLS Act will help prevent dangerous supply chain disruptions, reinforce our pharmaceutical security, and create American jobs.”

Concerns Over US Drug Supply Chains

The reliance on foreign nations for pharmaceuticals has been a growing issue. Zach Mottl, Chairman of the Coalition for a Prosperous America (CPA), highlighted the escalating crisis in the US, where more than 90% of all prescriptions are for generic drugs. Since 2002, imports from India have increased 35 times, while imports from China have surged 165 times. The PILLS Act is viewed as a necessary intervention to counteract this overdependence and safeguard domestic drug availability.

Similarly, David Sanders, Founder and Board Member of Securing America’s Medicines and Supply (SAMS), supported the initiative, stating that the Act aligns with the broader mission to reshore essential medicines, including generic drugs, biologics, and biosimilars, through targeted tax credits.

Potential Impact on Indian Pharma

India is one of the leading leading suppliers of generic drugs to the US. Many Indian pharmaceutical companies have built their business models around exporting to the US market. If the PILLS Act succeeds in attracting more pharmaceutical production back to the US, Indian manufacturers could face a potential decline in export demand and increased competition from US-based production units.

According to the news report, the key concerns for Indian pharma firms with exposure to the US include:

  • Reduced export demand – If US pharmaceutical companies are incentivised to manufacture domestically, demand for imports from India may decline.
  • Increased regulatory scrutiny – Stricter US policies could lead to heightened compliance requirements for Indian firms.
  • Potential price pressures – As the US looks to stabilise its domestic supply chain, Indian firms may need to adjust pricing strategies to remain competitive.

What Lies Ahead?

While the PILLS Act is yet to be passed, it signals a growing shift in US pharmaceutical policy towards self-sufficiency. Indian pharma giants such as Sun Pharma, Dr. Reddy’s Laboratories, Cipla, and Aurobindo Pharma, have substantial exposure to the US market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Sid Swaminathan to Lead Jio BlackRock’s Entry into India’s Asset Management

According to news reports, in a significant development within the financial sector, Jio BlackRock has announced the appointment of Sid Swaminathan, a seasoned professional with extensive experience at BlackRock, to lead its operations. This move comes as the joint venture between BlackRock Inc. and Mukesh Ambani’s financial services unit (Jio Financial Services) prepares to re-enter the Indian market with renewed vigour.

As of 10:10 AM on February 24, 2025, Jio Financial Services share price is trading at ₹230.99 a 1.15% decline.

The Joint Venture’s Background

Jio BlackRock is a 50:50 joint venture that marks a strategic collaboration aimed at capitalising on one of the world’s fastest-growing economies. After BlackRock’s exit from India in 2018, this new partnership represents an opportunity to leverage deep financial expertise alongside Ambani’s expansive business empire. The venture recently received in-principle approval from India’s securities regulator to launch its mutual fund business, signalling a fresh chapter in its evolution.

Appointment of Sid Swaminathan

London-based Sid Swaminathan brings 2 decades of experience from the world’s largest asset manager to his new role. His appointment is seen as a cornerstone in assembling a robust leadership team for Jio BlackRock Asset Management. Swaminathan’s vast expertise in asset management is expected to be instrumental as the firm charts its course into India’s dynamic market.

Strengthening the Leadership Team

Alongside Swaminathan’s appointment, Jio BlackRock has bolstered its senior leadership with several key hires. Komal Narang has been named the chief client officer, while R. Arun has joined the fixed-income team. Additionally, Prateek Nigudkar has transitioned from DSP Asset Managers to serve as a fund manager, and Tanvi Kacheria has relocated from BlackRock US to support the venture. These appointments underscore the joint venture’s commitment to building a diverse and experienced team.

Strategic Implications for the Indian Market

This series of high-profile appointments arrives at a time when Ambani is keen to disrupt India’s financial landscape by leveraging his extensive interests in telecommunications and retail. For BlackRock, the renewed focus on India offers a pathway to re-establish its presence in a market characterised by rapid growth and evolving investor dynamics. The collaboration is set to combine international expertise with local market insights, fostering a platform for future growth in asset management.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

KKR to Take Majority Control Stake of Healthcare Global Enterprises

KKR has signed definitive agreements to acquire a controlling stake in Healthcare Global Enterprises (HCG) from CVC Asia V. The acquisition will be carried out at ₹445 per share, with KKR purchasing up to 54% of HCG’s equity from CVC. An open offer will be conducted to acquire an additional 26% stake from public shareholders, in accordance with SEBI regulations. If fully subscribed, KKR’s total holding could range between 54% and 77%.

Open Offer Terms

As part of the open offer, KKR and its entities plan to acquire 3,70,90,327 equity shares, representing 26% of HCG’s expanded voting share capital. The offer price has been set at ₹504.41 per share, with a total potential consideration of ₹1,870.87 crore. 

Kotak Mahindra Capital Company Limited is managing the offer.

Change in Management 

Following the acquisition, KKR will assume sole control of HCG. Dr BS Ajaikumar, HCG’s founder, will transition to the role of Non-Executive Chairman and focus on clinical and research aspects. The board will undergo changes, with KKR’s nominees taking seats after the first phase of the transaction closes.

Overview

As per the reports, Healthcare Global Enterprises operates 25 medical care centres across 19 cities in India, specializing in oncology. It has 2,500 beds, 100 operating theatres, and 40 linear accelerator (LINAC) machines. HCG has been active in cancer treatment services in India since its founding in 1989.

Healthcare Global Enterprises share price is trading at ₹514.30, up ₹14.55 (2.91%) as of February 24, 12:05 PM. Over the past month, the stock has risen by 2.36%, and it has gained 34.14% in the past year.

Investments

KKR has made multiple investments in India’s healthcare sector. Its portfolio includes Baby Memorial Hospital, Healthium, Infinx, Max Healthcare, JB Pharmaceuticals, and Gland Pharma. The HCG acquisition, as per the filing, aligns with its focus on expanding healthcare infrastructure in India. The acquisition is expected to close by Q3 2025, subject to regulatory approvals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NSE Index Rejig: Jio Financial and Zomato To Join Nifty 50, BPCL and Britannia To Exit

The National Stock Exchange (NSE) has announced changes to its benchmark Nifty 50 index, with Jio Financial Services Ltd. (JFS) and Zomato Ltd. set to be added, while Bharat Petroleum Corporation Ltd. (BPCL) and Britannia Industries Ltd. will be removed. These changes will take effect from March 28, 2025, as part of the semi-annual index review.

Basis for Inclusion and Exclusion

NSE follows a set methodology for these adjustments, primarily looking at the 6-month average free-float market capitalisation. Companies that qualify for inclusion must have a market cap at least 1.5 times that of the smallest current constituent.

  • Zomato’s average free-float market cap: ₹1.70 lakh crore
  • Jio Financial’s average free-float market cap: ₹1.04 lakh crore
  • BPCL’s average free-float market cap: ₹60,928 crore
  • Britannia’s average free-float market cap: ₹64,151 crore

Changes in Nifty 100 and Nifty Next 50

Several other indices will also undergo revisions. In Nifty 100 and Nifty Next 50, the following companies will be added:

These will replace:

Nifty 500 Reshuffle

A total of 30 stocks will be added to the Nifty 500 index, including:

Some of the stocks being removed include:

These index changes are aimed at maintaining market representation based on updated stock performance and sector relevance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NFO Alert: WhiteOak Capital Mutual Fund Launches Equity Savings Fund

WhiteOak Capital Mutual Fund has introduced the WhiteOak Capital Equity Savings Fund, an open-ended hybrid scheme. The New Fund Offer (NFO) opens on February 25, 2025, and closes on March 5, 2025. This fund aims to balance capital appreciation and stability by investing across equity, arbitrage, and debt instruments.

Investment Objective and Strategy

The scheme follows a three-part allocation strategy:

  1. Equity & Equity-related Instruments (65-90%) – This includes both hedged (arbitrage) and unhedged (net long equity) positions.
  2. Debt & Money Market Instruments (10-35%) – Aimed at providing liquidity and stability.
  3. Exchange-Traded Commodity Derivatives & REITs/InvITs (up to 10%) – To add diversification.

The fund manager, Ramesh Mantri, will oversee the investment decisions, with a focus on managing market volatility through arbitrage strategies.

Fund Details

Metrics Details
Fund House WhiteOak Capital Mutual Fund
Fund Manager Ramesh Mantri
Benchmark NIFTY Equity Savings TRI
Type Open-ended
Category Hybrid: Equity Savings
Risk Level Moderately High
Exit Load 0.25% if redeemed within 7 days
Minimum Investment ₹500
Lock-in Period None

Performance Benchmark

The scheme will be benchmarked against the NIFTY Equity Savings TRI, which tracks portfolios exposed to a mix of equity, arbitrage, and debt instruments.

Liquidity and Exit Load

Units can be bought and sold on any business day at NAV-based prices. There is no lock-in period, but an exit load of 0.25% applies if redeemed within 7 days of investment.

The scheme will invest across market capitalisation and sectors, using arbitrage to manage risk. Investors should assess their risk appetite before investing, as the fund falls under the moderately high-risk category.

Ready to watch your savings grow? Try our SIP Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Aditya Birla Sun Life MF Announces Income Distribution Across 3 Schemes

Aditya Birla Sun Life Mutual Fund has declared income distribution under the IDCW (Income Distribution cum Capital Withdrawal) option for 3 of its schemes. The record date for the payout is February 25, 2025. Investors holding units in these schemes as of this date will be eligible for the announced distribution.

Payout Details Across Schemes

The Aditya Birla SL ELSS Tax Saver Fund has the highest income distribution among the three schemes.

  • Direct Plan IDCW: ₹12.230 per unit
  • Regular Plan IDCW: ₹13.067 per unit

The Aditya Birla SL Balanced Advantage Fund, which allocates investments across equity and debt, has declared:

  • Direct Plan IDCW: ₹0.166 per unit
  • Regular Plan IDCW: ₹0.147 per unit

The Aditya Birla SL Arbitrage Fund, which focuses on arbitrage opportunities between equity and derivatives markets, has declared the lowest payout among the three:

  • Direct Plan IDCW: ₹0.067 per unit
  • Regular Plan IDCW: ₹0.065 per unit

Record Date and Eligibility

The record date for income distribution is February 25, 2025. Investors who hold units in these schemes by the end of this date will receive the declared IDCW payouts. Any purchases made after the record date will not qualify for this distribution.

Tax Implications

IDCW payouts are taxed as per the investor’s applicable income tax slab. Unlike growth options, where returns are realised upon redemption, IDCW distributions are subject to tax in the year they are received.

The distribution amounts vary across schemes, with ELSS offering the highest payout. Investors receiving IDCW should be aware of tax implications.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.