What is the fund’s investment approach?
The Income Plus – Arbitrage and Active FoF will follow a multi-asset allocation strategy by investing in two other existing Nippon India schemes:
- Nippon India Arbitrage Fund
- Nippon India Strategic Debt Fund
The asset allocation will typically hover around 65–90% in arbitrage opportunities and 10–35% in actively managed debt instruments.
This design aims to deliver tax-efficient, stable returns by leveraging arbitrage opportunities in equity markets while maintaining fixed income exposure through active debt strategies.
The arbitrage portion helps the fund qualify for equity taxation, which is more favourable than debt taxation for investors.
NFO details
- NFO opens: June 3, 2025
- NFO closes: June 10, 2025
- Benchmark: Nifty 50 Arbitrage Index (65%) + CRISIL Dynamic Gilt Index (35%)
- Minimum investment: ₹500 and in multiples of Re 1 thereafter
The fund will be managed by Kinjal Desai (arbitrage allocation) and Sonal Jain (debt allocation).
Other details
The fund is positioned as a low-risk hybrid investment that could appeal to investors seeking alternatives to traditional fixed income products such as FDs or short-term debt funds. It aims to benefit from market volatility through arbitrage while offering potential additional returns from active debt calls.
The fund also aligns with equity taxation, making it a tax-efficient investment for those in higher tax brackets.
“This product is designed to suit investors who are risk-averse but still want to optimise returns in the short to medium term,” the fund house said in its release.
First Published: Jun 3, 2025 12:36 PM IST
