NFO Alert: Sundaram Mutual Fund Launches Income Plus Arbitrage Active FoF

Sundaram Mutual Fund has opened the New Fund Offer (NFO) for the Sundaram Income Plus Arbitrage Active Fund of Fund.  

The offer opened on January 5, 2026, and will close on January 8, 2026. Allotment of units is scheduled for January 8, 2026. The scheme is open-ended in nature. 

Scheme Category and Risk Level 

The fund is classified under the Fund of Funds category. As per the Risk-O-Meter disclosed in the scheme documents, it carries a moderate risk profile. The scheme will invest in other mutual fund schemes rather than directly holding securities. 

Investment Objective  

The stated objective of the scheme is to generate long-term capital appreciation. This is proposed to be achieved by investing in units of debt-oriented mutual fund schemes and arbitrage mutual fund schemes.  

The fund will actively manage allocations across these underlying schemes within the limits set out in its investment mandate. 

Plans, Options and Minimum Investment 

The scheme is available under both Direct and Regular plans. Investors can choose between Growth and Income Distribution cum Capital Withdrawal (IDCW) options.  

The minimum investment amount during the NFO period is ₹5,000. After allotment, investments and redemptions will be permitted on an ongoing basis. 

Fund Management 

The scheme will be managed by Kumaresh Ramakrishnan, Sandeep Agarwal and S Bharath. The fund management team will be responsible for selecting and monitoring the underlying debt-oriented and arbitrage mutual fund schemes forming part of the portfolio. 

Loads and Applicable Charges 

There is no entry load or exit load applicable to investments in the scheme. In line with SEBI regulations, a stamp duty of 0.005% will be levied on the purchase of mutual fund units.  

This applies to lump sum investments as well as systematic investment plans, systematic transfer plans and dividend reinvestments. 

Operational Features 

As the scheme does not carry an exit load, units can be redeemed without a load after allotment. The Fund of Funds structure allows the scheme to adjust its exposure among eligible underlying funds based on the stated strategy. 

Read More:  Sundaram Mutual Fund Temporarily Halts New Investments in Global Brand Theme Equity Active FoF from January 1, 2026! 

Conclusion 

Sundaram Income Plus Arbitrage Active FoF has been introduced as a moderate-risk Fund of Funds investing across debt-oriented and arbitrage mutual fund schemes. With a short NFO period, no entry or exit load and a ₹5,000 minimum investment, the scheme expands the range of Fund of Funds options currently available in the market. 

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