NFO Alert: Nippon India Mutual Fund Launches Income Plus Arbitrage Active FoF

Nippon India Mutual Fund has opened subscriptions for its new scheme, the Nippon India Income Plus Arbitrage Active Fund of Fund, from June 2 to June 11, 2025. The allotment is scheduled for the same day as the closing, June 11, 2025.

Structure and Asset Allocation

This is an open-ended hybrid fund of fund scheme. It will invest in a mix of debt-oriented mutual fund schemes and arbitrage funds. The fund will allocate 95% to 100% of its assets to units of arbitrage and debt mutual fund schemes, and 0% to 5% to debt and money market instruments directly.

Objective and Risk Profile

The fund’s stated objective is to generate stable returns by investing across existing debt and arbitrage schemes. It falls under the moderate risk category. The investment strategy includes dynamic reallocation between arbitrage and debt schemes, based on parameters such as interest rate risk, credit risk, liquidity conditions, and arbitrage spreads between cash and derivatives markets.

Fund Type and Plan Options

• Category: Fund of Funds
• Fund Type: Open-ended
• Plans: Direct and Regular
• Options: Growth and IDCW

There is no entry or exit load applicable. As per SEBI norms, a 0.005% stamp duty is levied on mutual fund purchases.

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Fund Management

The fund will be managed by Sushil Budhia and Rohit Shah. The minimum investment amount is ₹500. There is no exit load, and no additional charges for redemption.

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Conclusion

The Nippon India Income Plus Arbitrage Active Fund of Fund combines existing arbitrage and debt mutual fund schemes under a single umbrella. The fund is open for subscription until June 11, 2025, with no lock-in period or exit load, and aims to maintain a moderate risk level while investing in a mix of instruments across Nippon India and other mutual funds.

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 in the securities market are subject to market risks, read all the related documents carefully before investing.