SBI Mutual Fund has announced the launch of SBI Income Plus Arbitrage Active FOF, an open-ended Fund of Fund (FoF) scheme that will invest in units of actively managed debt-oriented schemes and arbitrage mutual fund schemes. The New Fund Offer (NFO) opens for subscription on April 23 and closes on April 30.
The investment objective of the scheme is to generate regular income and capital appreciation by investing in a mix of units of actively managed debt-oriented schemes and arbitrage mutual fund schemes. The scheme’s first-tier benchmark is a blend of 65% Nifty Composite Debt Index and 35% Nifty 50 Arbitrage Index.
“In today’s market environment, stability and tax-efficiency matter. The SBI Income Plus Arbitrage Fund of Fund aims to allocate investments between debt-oriented and arbitrage mutual fund schemes, depending on market conditions, to provide a combination of stability from debt and market-neutral returns from arbitrage. The scheme offers a tax-efficient option for conservative investors, HNIs, corporates managing treasuries, and anyone seeking optimal post-tax returns over a 2–3-year horizon,” said D. P. Singh, Deputy MD & Joint CEO, SBI Funds Management.
The scheme will primarily invest 35%–50% of its assets in units of actively managed arbitrage mutual fund schemes, a minimum of 50% and up to 65% in units of actively managed debt-oriented schemes, and up to 5% in money market instruments, Triparty Repo, reverse repo, cash, and cash equivalents. The fund follows a Fund of Fund (FoF) structure and shall invest in the units of existing mutual fund schemes of SBI Mutual Fund and/or other mutual funds.
Investments in actively managed debt-oriented schemes will be based on an evaluation of macroeconomic factors, policy rates, liquidity expectations, and demand-supply dynamics, enabling active management of credit risk and interest rate sensitivity. The scheme will exclude investments in underlying schemes classified under Cell C III of the PRC matrix.
The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter, with additional investments allowed from Rs 1,000 onwards in similar multiples. Investors can also opt for daily, weekly, monthly, quarterly, semi-annual, and annual Systematic Investment Plans (SIPs).
Also Read | SBI lowers FD rates to 6.9%; Debt mutual funds steal the spotlight with over 118 outperformers
The fund will be managed by Ardhendu Bhattacharya. The scheme is suitable for investors seeking regular income and capital appreciation, and preferring exposure to actively managed debt-oriented and arbitrage mutual fund schemes.
The investment objective of the scheme is to generate regular income and capital appreciation by investing in a mix of units of actively managed debt-oriented schemes and arbitrage mutual fund schemes. The scheme’s first-tier benchmark is a blend of 65% Nifty Composite Debt Index and 35% Nifty 50 Arbitrage Index.
“In today’s market environment, stability and tax-efficiency matter. The SBI Income Plus Arbitrage Fund of Fund aims to allocate investments between debt-oriented and arbitrage mutual fund schemes, depending on market conditions, to provide a combination of stability from debt and market-neutral returns from arbitrage. The scheme offers a tax-efficient option for conservative investors, HNIs, corporates managing treasuries, and anyone seeking optimal post-tax returns over a 2–3-year horizon,” said D. P. Singh, Deputy MD & Joint CEO, SBI Funds Management.
The scheme will primarily invest 35%–50% of its assets in units of actively managed arbitrage mutual fund schemes, a minimum of 50% and up to 65% in units of actively managed debt-oriented schemes, and up to 5% in money market instruments, Triparty Repo, reverse repo, cash, and cash equivalents. The fund follows a Fund of Fund (FoF) structure and shall invest in the units of existing mutual fund schemes of SBI Mutual Fund and/or other mutual funds.
Investments in actively managed debt-oriented schemes will be based on an evaluation of macroeconomic factors, policy rates, liquidity expectations, and demand-supply dynamics, enabling active management of credit risk and interest rate sensitivity. The scheme will exclude investments in underlying schemes classified under Cell C III of the PRC matrix.
The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter, with additional investments allowed from Rs 1,000 onwards in similar multiples. Investors can also opt for daily, weekly, monthly, quarterly, semi-annual, and annual Systematic Investment Plans (SIPs).
Also Read | SBI lowers FD rates to 6.9%; Debt mutual funds steal the spotlight with over 118 outperformers
The fund will be managed by Ardhendu Bhattacharya. The scheme is suitable for investors seeking regular income and capital appreciation, and preferring exposure to actively managed debt-oriented and arbitrage mutual fund schemes.
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