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Time of India
09-05-2025
- Business
- Time of India
NFO Alert: Baroda BNP Paribas Mutual Fund launches Income Plus Arbitrage Active Fund of Funds
Baroda BNP Paribas AMC has launched the Income Plus Arbitrage Active Fund of Fund, targeting conservative investors seeking better post-tax returns than traditional debt products. The scheme invests in a mix of debt and arbitrage mutual funds and is open for subscription till May 21. It offers tax-efficient income with a low-risk profile and diversified allocation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Baroda BNP Paribas Asset Management India has announced the launch of the Baroda BNP Paribas Income Plus Arbitrage Active Fund of Fund (FoF). The scheme is designed for conservative investors who seek capital appreciation with regular income and aim to earn higher post-tax returns than traditional debt instruments and debt new fund offer or NFO of the scheme is open for subscription and will close on May Read | SIP inflows climb 3% to all-time high of Rs 26,632 crore in April The scheme will invest 50–65% in units of debt oriented mutual fund schemes of Baroda BNP Paribas Mutual Fund , 30–50% in units of arbitrage scheme of Baroda BNP Paribas Mutual Fund and 0-5% in money market instrumentsthus aiming to create a balanced and diversified portfolio that helps mitigate risk while enhancing return potential.'For conservative investors looking beyond fixed income products or conventional debt funds, this fund offers the potential to earn better post-tax returns, especially for holding periods beyond two years,' said Prashant Pimple, CIO – Fixed Income, AMC.'The concessional long-term capital gains (LTCG) tax rate of 12.5% makes this an attractive option for long-term savers in higher tax brackets,' he fund will be co-managed by Prashant Pimple and Neeraj Saxena. The scheme will be benchmarked against Nifty Composite Debt Index 60% + Nifty Arbitrage Index 40% - minimum application amount for lump sum investment is Rs 1,000 and in multiples of Re 1 thereafter. For daily, weekly, and monthly SIP, the minimum amount is Rs 500 and in multiples of Re 1 thereafter. For quarterly SIP, the minimum investment amount is Rs 1,500 and in multiples of Re 1 Baroda BNP Paribas Income Plus Arbitrage Active FoF seeks to invest in a portfolio of fixed income and arbitrage schemes. It seeks to build a risk profile similar to lower-risk fixed-income schemes and would invest in the Baroda BNP Paribas Arbitrage Fund for its arbitrage Read | NFO Insight: Can this multi asset allocation fund save your portfolio in this volatile market? The portfolio manager would select a fixed income scheme or multiple fixed income schemes with differential weights based on their views on macroeconomic variables, interest rates, credit environment, etc. The scheme intends to predominantly invest in debt schemes, thus providing investors a low-risk investment optionThis scheme is ideal for investors seeking lower-risk mutual funds, tax-efficient income solutions, and alternatives to fixed-income products.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
23-04-2025
- Business
- Business Standard
Looking for low-risk returns? SBI's new fund mixes debt and arbitrage
SBI Mutual Fund, India's largest asset management company, on Tuesday launched a new hybrid investment vehicle — the SBI Income Plus Arbitrage Active Fund of Fund (FOF). The New Fund Offer (NFO) opens on April 23, 2025, and closes on April 30, 2025. This open-ended scheme offers investors a blend of actively managed debt schemes and arbitrage mutual fund schemes, aiming to provide regular income with capital appreciation — all with a layer of tax efficiency. However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved. The objective of the SBI Income Plus Arbitrage Active FOF is to deliver stable, tax-efficient returns by dynamically allocating funds between: Actively managed debt-oriented mutual fund schemes (50–65% of portfolio) Actively managed arbitrage mutual fund schemes (35–50% of portfolio) Cash or money market instruments (up to 5%) Benchmark: 65% Nifty Composite Debt Index + 35% Nifty 50 Arbitrage Index Structure: Fund of Fund – invests in existing SBI Mutual Fund schemes or those of other AMCs Also Read "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 suitable tax efficient option for conservative investors, HNIs, corporates managing treasuries, and anyone looking for optimal post-tax returns over a 2–3-year horizon," said D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited. The scheme would primarily invest between 35% and 50% of its assets in Units of actively managed Arbitrage Mutual Fund schemes, invest a minimum of 50% and a maximum of 65% of its assets 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 minimum application amount required is of Rs. 5,000 and in multiples of Re. 1 thereafter with additional investment of Rs. 1,000 and in multiples of Re. 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP (Systematic Investment Plan). The fund manager for the SBI Income Plus Arbitrage Active Fund of Funds is Ardhendu Bhattacharya, who has been with the fund house since April 2019. He currently manages the debt portion of several funds, including the SBI Retirement Benefit Fund - Aggressive Plan, SBI Retirement Benefit Fund - Aggressive Hybrid Plan, SBI Retirement Benefit Fund - Conservative Hybrid Plan, SBI Retirement Benefit Fund - Conservative Plan, SBI Floating Rate Debt Fund, and SBI Arbitrage Opportunities Fund. Additionally, he is the co-Fund Manager of the SBI Corporate Bond Fund, SBI Banking & PSU Fund, SBI Magnum Ultra Short Duration Fund, and SBI-ETF 10 Year Gilt. Who should consider this fund? This fund may be a suitable fit for: Conservative investors seeking stable returns High-net-worth individuals (HNIs) looking for tax-advantaged income Corporate treasuries managing cash with a balanced risk appetite Investors with a 2–3 year investment horizon Investment Details
