NFO Alert: Axis Mutual Fund Launches Income Plus Arbitrage Passive FoF

Axis Mutual Fund has opened subscriptions for the Axis Income Plus Arbitrage Passive Fund of Fund (FoF). It is an open-ended hybrid scheme. The New Fund Offer (NFO) begins on October 28, 2025, and closes on November 11, 2025. The minimum investment amount is ₹100. The scheme is available in Growth and Income Distribution cum Capital Withdrawal (IDCW) plans.

Category and Structure

The fund falls under the Hybrid: Income plus Arbitrage category. It invests across debt and arbitrage segments to balance income and limited market exposure. The fund does not have a lock-in period and carries no exit load on redemption. It will invest in a portfolio of passive debt-oriented mutual fund schemes and arbitrage funds.

Investment Objective

The main aim of the scheme is to generate returns over the medium term by allocating assets to passive debt funds and arbitrage opportunities. The structure allows for participation in debt markets while taking advantage of short-term arbitrage spreads. It is not designed for active management or stock selection.

Benchmark and Risk Level

The benchmark index for this fund is a mix of NIFTY Short Duration Index (65%) and NIFTY 50 Arbitrage TRI (35%). The blended benchmark mirrors the fund’s allocation between fixed income and arbitrage assets. The riskometer categorises the scheme as Low to Moderate, indicating controlled volatility compared to equity-oriented funds.

Fund Management

The scheme will be managed by Aditya Pagaria under Axis Asset Management Company Ltd. The Registrar and Transfer Agent for the fund is KFin Technologies Ltd. The AMC will oversee fund operations, compliance, and investor servicing.

Read More: Groww Mutual Fund Reopens Subscriptions for Groww Silver ETF FOF!

Conclusion 

The Axis Income Plus Arbitrage Passive FoF provides a mix of debt and arbitrage investments through a passive structure. With a low minimum investment, no exit load, and a moderate risk level, it offers investors exposure to both fixed income and arbitrage strategies within one portfolio.

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.