Edelweiss Mutual Fund Files Draft for Income Plus Arbitrage Active FoF

Edelweiss Mutual Fund has filed a draft for a new hybrid offering named Edelweiss Income Plus Arbitrage Active Fund of Fund. It is an open-ended fund of fund (FoF) scheme that plans to invest in actively managed debt and arbitrage mutual fund schemes. The fund’s stated objective is to seek long-term capital appreciation through a mix of these investments. 

There is no guarantee that the stated objective will be achieved.

Asset Allocation and Limits

The scheme will allocate between 95% to 100% of its assets in underlying mutual fund schemes. Within this, 35-65% will be invested in debt-oriented schemes and 35-65% in arbitrage schemes. Up to 5% may be parked in money market instruments. The fund will not invest in derivatives, overseas securities, or structured obligations.

Benchmark and Risk

The fund will be benchmarked against a blended index comprising 60% Nifty Short Duration Debt Index and 40% Nifty 50 Arbitrage TRI. Both the scheme and the benchmark fall under the ‘Moderate’ risk category.

Fund Access and Pricing

Units will be offered at ₹10 each during the New Fund Offer (NFO) period. Minimum application and SIP amounts start at ₹100. There will be no exit load on redemptions or switches. The scheme offers both Regular and Direct Plans, with options for Growth and IDCW (Reinvestment, Payout, or Transfer).

NAV and Liquidity

NAV will be published daily and updated on the fund house’s and AMFI’s websites. Units can be bought or redeemed on any business day at NAV-based prices. Redemption proceeds will be dispatched within three working days. 

Conclusion

The draft was filed with SEBI on June 16, 2025. The scheme will be jointly managed by Bhavesh Jain, Bharat Lahoti (equity portion), and Rahul Dedhia, Hetul Raval (debt portion). The fund is new and has no prior performance track record.

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