NFO Alert: Old Bridge Mutual Fund Unveils Arbitrage Fund

Old Bridge Mutual Fund has announced the launch of the Old Bridge Arbitrage Fund, an open-ended hybrid scheme. The New Fund Offer (NFO) will open for subscription on November 6, 2025, and close on November 10, 2025. The scheme will reopen for continuous sale and repurchase from November 14, 2025. The issue price is fixed at ₹10 per unit.

Fund Objective

The scheme aims to generate income by taking advantage of arbitrage opportunities between the cash and derivatives segments of the equity markets. The remaining portion of the portfolio will be invested in debt and money market instruments. The fund follows a fully hedged approach to manage risk and maintain stability in returns.

Benchmark and Management

The fund will be benchmarked against the Nifty 50 Arbitrage TRI. It will be managed by Kenneth Andrade, under the Old Bridge Mutual Fund, which has an asset base of ₹1,953 crore. The scheme will be classified under the Hybrid – Arbitrage Fund category.

Asset Allocation

The fund will invest 65% to 100% of its assets in equity and equity-related instruments and 0% to 35% in debt and money market instruments. Additionally, up to 10% may be invested in units issued by REITs and InvITs. The allocation strategy is designed to keep the fund’s exposure balanced between equity and debt segments.

Investment Details

The minimum investment amount is ₹5,000, and additional investments can be made in multiples of ₹1. The scheme does not allow leveraged positions. An exit load of 0.25% will apply if units are redeemed or switched within seven days of allotment; there will be no exit load thereafter.

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Conclusion

The Old Bridge Arbitrage Fund offers investors an option to park short- to medium-term surplus funds while maintaining liquidity. The scheme carries a low-risk rating and aims to provide returns through a structured arbitrage and debt allocation framework.

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.