Upcoming NFO: JioBlackRock Mutual Fund Files Draft for JioBlackRock Income Plus Arbitrage Omni FOF

JioBlackRock Mutual Fund has filed the draft Scheme Information Document for its JioBlackRock Income Plus Arbitrage Omni FOF.  

The scheme falls under the Hybrid FOF (Domestic) – Income Plus Arbitrage FOF (Omni) category and will invest in units of debt-oriented and arbitrage funds. The document describes it as the fund house’s first scheme in the fund-of-fund category.  

How Be the Money Will Allocated? 

The scheme will invest 95%-100% of its total assets in mutual fund units under normal conditions. Within this, 35%-65% can be allocated to active or passive debt-oriented funds, while another 35%-65% can go into arbitrage funds. 

Debt and money market instruments can account for 0%-5% of the portfolio. The scheme can invest in funds managed by JioBlackRock as well as other funds with similar objectives, strategies, and asset allocation.  

Investment Approach 

The scheme is open-ended and will be actively managed. The investment strategy will consider factors including interest rates, economic conditions, credit risk, liquidity and arbitrage opportunities between the cash and futures and options markets. 

A part of the portfolio can also be held in government securities, Treasury Bills, money market instruments, corporate debt through repo or reverse repo transactions and short-term bank deposits, within the stated limits.  

Benchmark And Fund Details 

The scheme will use a benchmark comprising 60% NIFTY Composite Debt Index and 40% Nifty 50 Arbitrage Index (TRI). It aims to generate income over a short to medium-term investment horizon.  

The document states that there is no assurance that the investment objective will be achieved.  

Minimum Investment 

The scheme will have Direct and Regular Plans, with Growth as the only option. The minimum lump-sum investment and SIP instalment are ₹500. There will be no exit load, while the NFO price is ₹10 per unit.  

Read More: NFO Alert: SBI Mutual Fund Launches SBI Nifty200 Value 30 ETF FoF! 

Conclusion  

The draft outlines a fund-of-fund structure that combines debt-oriented and arbitrage funds, with mutual fund units forming the bulk of the proposed 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.