Nippon India Mutual Fund has submitted a draft scheme document dated May 7, 2025, for an open-ended hybrid scheme named Nippon India Income Plus Arbitrage Active Fund of Fund. The scheme intends to invest primarily in debt and arbitrage mutual fund schemes.
This is a hybrid Fund of Fund structure, which will allocate 95% to 100% of its assets to underlying debt and arbitrage mutual funds, and up to 5% in short-term debt or money market instruments. The objective is to generate stable returns by investing in a mix of debt and arbitrage opportunities. The scheme may also invest in government securities, treasury bills, and tri-party repo instruments to manage liquidity.
The Scheme offers the following Plans/Options under the Direct Plan and the Regular Plan:
a ) Growth Plan: Growth Option
The scheme will benchmark its performance against a combination of 60% CRISIL Short Term Bond Index and 40% Nifty 50 Arbitrage Index. NAV will be disclosed on all business days and published by 10 a.m. on the AMC and AMFI websites on the next working day.
The fund will be open for subscription and redemption on all business days. Redemption proceeds will be paid within three working days. There is no exit load applicable.
Mr. Rohit Shah and Mr. Sushil Budhia will manage the scheme. Both have prior experience managing equity and debt portfolios within the AMC.
The scheme will not invest in overseas securities, derivatives, or structured debt products. It will not engage in stock lending or short selling. It offers regular and direct plans with growth and IDCW options.
Read more: NFO Alert: Canara Robeco Mutual Fund Launches Multi Asset Allocation Fund
The scheme is new and does not have past performance data or portfolio holdings. This scheme's core investment objective is to provide stable returns to its investors by employing a strategic approach to manage market volatility. This strategy involves investing in a diverse portfolio encompassing open-ended debt schemes and units of Arbitrage funds from Nippon India Mutual Fund or other Mutual Funds. Investors should note that the achievement of the investment objective is not assured.
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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.
Published on: May 28, 2025, 7:50 PM IST
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