SBI Mutual Fund, India's largest asset management company, has announced the launch of its latest offering — the SBI Income Plus Arbitrage Active Fund of Fund (FoF). This open-ended scheme is designed to provide a balanced investment approach, targeting regular income and capital appreciation by allocating capital across debt-oriented and arbitrage mutual fund schemes.
The New Fund Offer (NFO) opens on 23 April 2025, and will close on 30 April 2025. The fund aims to deliver tax-efficient, moderate returns over a medium-term horizon of two to three years, though it does not guarantee any returns.
The fund will allocate 50% to 65% of its portfolio to debt mutual fund schemes for income stability, while 35% to 50% will be directed towards arbitrage strategies to capture market opportunities. Additionally, up to 5% may be invested in cash, money market instruments, triparty repos, and reverse repos, adding liquidity and flexibility to the portfolio.
Its performance will be benchmarked against a composite index made up of 65% Nifty Composite Debt Index and 35% Nifty 50 Arbitrage Index, reflecting its hybrid strategy. The scheme will be managed by Ardhendu Bhattacharya, a seasoned fund manager associated with SBI Mutual Fund since 2019, who brings considerable experience in overseeing debt and hybrid portfolios.
The minimum investment required is Rs 5,000, with additional contributions allowed in multiples of Rs 1,000. Investors can also opt for Systematic Investment Plans (SIPs), available in daily, weekly, monthly, quarterly, semi-annual, and annual frequencies, offering accessibility and convenience.
This fund is targeted at investors seeking a diversified approach that combines the relative safety of debt instruments with the return potential of arbitrage strategies. It is especially suited for those looking for regular income, moderate capital growth, and an actively managed portfolio without the need to track individual mutual fund schemes.