SBI Mutual Fund launches SBI Income Plus Arbitrage Active FOF

Mumbai: SBI Mutual Fund announces the launch of SBI Income Plus Arbitrage Active FOF, an open-ended Fund of Fund scheme investing in units of actively managed debt-oriented schemes & actively managing arbitraged mutual fund schemes. The NFO period for scheme is April 23 – 30, 2025.

The investment objective of the scheme shall be to generate regular income and capital appreciation by investing in a mix of units of actively managed debt-oriented schemes and actively managed Arbitrage mutual fund schemes. However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved. The scheme’s first-tier benchmark is 65 per cent Nifty Composite Debt Index + 35 per cent Nifty 50 Arbitrage Index.

D P Singh, Deputy MD & Joint CEO, SBI Funds Management Ltd, said: “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.”

The scheme would primarily invest between 35 per cent and 50 per cent of its assets in Units of actively managed Arbitrage Mutual Fund schemes, invest a minimum of 50 per cent and a maximum of 65 per cent of its assets in Units of actively managed debt-oriented schemes, and up to 5 per cent in Money market instruments, Triparty Repo, reverse Repo, cash and cash equivalents. The minimum application amount is 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 via daily, weekly, monthly, quarterly, semi-annual, and annual SIP.