HDFC Mutual Fund Files Draft for Income Plus Arbitrage Omni FOF With SEBI

HDFC Mutual Fund has filed the draft for HDFC Income Plus Arbitrage Omni, a domestic Hybrid Fund of Funds (FOF). The scheme will invest in units of domestic arbitrage schemes and active or passive debt-oriented schemes. It is open-ended, allowing investors to enter or exit on any business day.

Investment Objective

The scheme is to provide income and potential long-term capital growth through its investments in arbitrage and debt schemes. Returns are not guaranteed, and the scheme may perform differently depending on market conditions.

The fund will track a composite benchmark of 40% NIFTY 50 Arbitrage Index (TRI) and 60% NIFTY Short Duration Debt Index. This benchmark is chosen to reflect the mix of arbitrage and debt instruments in the portfolio.

NAV and Disclosure

The Net Asset Value (NAV) will be calculated and published within five business days from allotment during the New Fund Offer (NFO). After that, the NAV will be updated daily by 10 a.m. on the AMC and AMFI websites.

Units can be redeemed or switched out at NAV-based prices on any business day. Redemption proceeds are generally processed within three working days. IDCW payouts are transferred within seven working days from the record date, following SEBI/AMFI guidelines.

Plans and Options

The fund will have Regular and Direct plans with Growth and IDCW options. The default plan is Growth, and the default IDCW facility is reinvestment. An exit load of 1% applies if units are redeemed within 18 months; no load applies afterwards.

Minimum Investment and NFO

The minimum investment is ₹100 during the NFO and on a continuous basis. Additional purchases also start at ₹100. The NFO price is ₹10 per unit, and the offer period will run for 3 to 15 working days.

Read More: UTI AMC Suspends Fresh Investments in Silver ETF Fund of Fund!

Conclusion

The HDFC Income Plus Arbitrage Omni FOF allows investors to access arbitrage and debt schemes through a single fund. It offers flexibility in entry and exit, options for growth or income distribution, and a low minimum investment.

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.