HDFC Income Plus Arbitrage Omni FOF Opens for Subscription Today on February 27, 2026

The HDFC Income Plus Arbitrage Omni FOF opened for subscription on February 27, 2026, as announced in its NFO filing. The scheme aims to provide income and long-term capital appreciation through investments in domestic arbitrage schemes and active or passive debt-oriented schemes.

The fund will operate as an open-ended fund of fund structure with a hybrid benchmark composition. The NFO will remain open until March 11, 2026, after which the scheme will reopen for continuous sales and repurchases.

Scheme Structure and Key Features

The scheme has been launched as an open-ended fund of fund structure that will invest exclusively in domestic arbitrage schemes and debt-oriented schemes. It will not invest directly in equities, derivatives, or debt instruments but will gain exposure through underlying mutual fund schemes.

The minimum application amount has been set at ₹100 during both the NFO period and on a continuous basis. Investors may add any amount thereafter without restrictions, offering flexibility in subsequent investments.

Investment Objective and Benchmark Composition

The stated investment objective is to generate income or long-term capital appreciation by investing in units of arbitrage schemes and active or passive debt-oriented schemes. The benchmark for the scheme is a blend of 40% NIFTY 50 Arbitrage Index (TRI) and 60% NIFTY Short Duration Debt Index, reflecting the fund’s dual focus on arbitrage and short-duration debt exposures.

This benchmark composition aims to represent the risk-return characteristics of the underlying assets. These indices serve as the performance reference for the scheme across different market conditions.

Exit Load and Transaction Terms

The fund has a defined exit load structure that applies to all purchase and switch-in transactions. An exit load of 1.00% will be levied if units are redeemed or switched out within 18 months from the date of allotment.

No exit load will apply if the redemption or switch-out occurs after 18 months, offering clarity on holding period considerations. These conditions ensure transparency for investors evaluating the liquidity and cost implications of the scheme.

NFO Timeline and Subscription Window

The New Fund Offer opened on February 27, 2026, marking the beginning of the subscription period. The NFO will close on March 11, 2026, after which units will be allotted based on the purchase price applicable during the offer period.

Following the NFO closure, the fund will be available for investments on a continuous basis. This timeline provides a clear window for initial participation in the scheme.

Read More: RBI Approves SBI Mutual Fund to Acquire Up To 10% Stake in RBL Bank.

Conclusion

The launch of HDFC Income Plus Arbitrage Omni FOF provides investors with access to a combination of arbitrage and short-duration debt strategies through a fund of fund structure. The defined exit load, benchmark composition, and minimum investment rules offer transparency regarding operations.

The opening and closing dates of the NFO outline the subscription period clearly for participants. The scheme’s design aligns with its objective of generating income or long-term capital appreciation through diversified underlying schemes.

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.