Upcoming NFO: Helios Mutual Fund Filed Draft for Arbitrage Fund

Helios Mutual Fund is introducing the Helios Arbitrage Fund, an open-ended arbitrage scheme. The fund will offer units at ₹10 each during the New Fund Offer (NFO), after which subscriptions and redemptions will take place at NAV-based prices.  

The scheme is categorised as a hybrid arbitrage fund and will operate under SEBI’s mutual fund regulations. 

Investment Objective 

According to the scheme document, the objective is to earn income and capital appreciation by mainly investing in arbitrage opportunities across equity cash and derivative markets.  

When suitable arbitrage positions are not available, the fund may deploy part of its corpus in debt and money market instruments. The document clearly states that there is no assurance of returns. 

Asset Allocation 

The indicative asset allocation allows 65% to 100% of the portfolio to be invested in equity and equity-related instruments, including derivatives and REITs.  

The remaining portion, up to 35%, can be invested in debt securities and money market instruments. Derivatives are intended to support arbitrage and hedging positions, not to increase directional exposure to equities. 

Benchmark and Risk Classification 

The scheme will be benchmarked against the NIFTY 50 Arbitrage Total Return Index (TRI), which is classified by AMFI as a Tier I benchmark for arbitrage funds.  

Based on internal assessment at the time of launch, both the scheme and the benchmark fall under the low-risk category, as reflected in the risk-o-meter disclosed in the scheme information document. 

Liquidity and Structure 

As an open-ended scheme, the Helios Arbitrage Fund will permit subscriptions and redemptions on all business days.  

The units are not proposed to be listed on any stock exchange. The fund will offer Direct and Regular plans, with Growth and IDCW options available under each plan. 

Loads and Minimum Investment 

An exit load of 0.25% will be charged if units are redeemed or switched out within 15 days from the date of allotment. No exit load will apply after this period.  

The minimum investment amount during the NFO is ₹5,000, with additional purchases allowed from ₹1,000 onwards, subject to scheme terms. 

Read More: NFO Alert: Groww Mutual Fund Launches Nifty Chemicals ETF! 

Conclusion 

The Helios Arbitrage Fund NFO sets out a structure focused on arbitrage positions with defined allocation limits, standard liquidity features and a recognised arbitrage benchmark. Investors are expected to review the scheme information document for complete details before taking any investment decision. 

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.