India’s largest mutual fund company, SBI Mutual Fund, announced a new scheme called “SBI Income Plus Arbitrage Active FOF” on 22 April 2025.
This is an open-ended Fund of Funds (FOF) that will actively invest in mutual fund schemes focused on debt and arbitrage strategies.
The New Fund Offer (NFO) will be open from 23 April to 30 April 2025.
What Makes This Fund Special?
The aim of the fund is to generate regular income and capital growth. To do this, it will invest in mutual funds that already follow debt and arbitrage investment strategies.
However, it’s important to note that the scheme does not guarantee any returns.
The scheme’s performance will be measured using a benchmark made up of 65% Nifty Composite Debt Index and 35% Nifty 50 Arbitrage Index, which helps provide balanced and fair comparison.
What Did the Fund House Say?
Mr. D.P. Singh, Deputy MD and Joint CEO of SBI Funds Management Ltd., said that stability and tax efficiency are very important in the current market.
He added that this scheme is ideal for those who want to avoid market ups and downs and are looking for better post-tax returns.
He also mentioned it’s a good choice for conservative investors, high-net-worth individuals (HNIs), companies, and treasury managers.
Investment Details
50% to 65% of the fund will be invested in debt-oriented schemes
35% to 50% in arbitrage schemes
Up to 5% in money market instruments and cash
The minimum investment required is ₹5,000, and after that, additional investments can be made in multiples of ₹1.
Investors can also choose to invest through Systematic Investment Plans (SIPs) with options for daily, weekly, monthly, quarterly, half-yearly, or yearly contributions.
The fund will be managed by Mr. Ardhendu Bhattacharya, a seasoned fund manager with SBI Mutual Fund since 2019. He has handled several retirement and debt funds successfully.
Overall, SBI Income Plus Arbitrage Active FOF offers a unique mix of stability, tax efficiency, and investment flexibility for investors through a fund of funds approach.
