Nippon India Income Plus Arbitrage Active Fund of Fund is designed for conservative investors seeking relatively better risk adjusted returns. Debt Mutual Fund and Money Market Instruments will have an allocation below 65% at all times, the fund offers taxation at 12.5% if held for over 24 months.
A blend of debt-oriented and arbitrage approach
Seeking to navigate market Volatilities
STCG (<24 months): As per Income tax slab
LTCG (>24 months): 12.5%
(source: https: nipponindiaim.com)
Nippon India Income Plus Arbitrage Active Fund of Fund NFO Details:
| Mutual Fund | Nippon India Mutual Fund |
| Scheme Name | Nippon India Income Plus Arbitrage Active Fund of Fund |
| Objective of Scheme | The primary investment objective of the scheme is to achieve stable returns while navigating market volatilities for its investors. This objective will be pursued by strategically investing in a diversified portfolio of open-ended debt oriented schemes, and units of Arbitrage funds of Nippon India Mutual Fund or any other Mutual Fund(s). There is no assurance that the investment objective of the Scheme will be achieved. |
| Scheme Type | Open Ended |
| Scheme Category | Hybrid Scheme – Conservative Hybrid Fund |
| New Fund Launch Date | 02-Jun-2025 |
| New Fund Earliest Closure Date | |
| New Fund Offer Closure Date | 11-Jun-2025 |
| Indicate Load Seperately | Exit Load: NIL Exit load if charged, by NIMF to the unit holders shall be credited to the scheme immediately net of Goods & Service Tax, if any |
| Minimum Subscription Amount | Minimum amount of Rs.500 and in multiples of Re.1 |
| For Further Details Please Visit Website | https://mf.nipponindiaim.com |
(source: https://www.amfiindia.com/)
Product Differentiation
| Features | Debt Funds | Arbitrage Funds | Income Plus Arbitrage Active Fund of Fund |
|---|---|---|---|
| Asset Allocation | Limited to Debt Allocation Only | Hedged Equity allocation is > 65% | Mix of Debt Oriented Schemes & Arbitrage Scheme. |
| Key Factors In Fund Selection | Investor Takes fund selection Call | Fund Manager Takes The fund selection Call | |
| Taxation On Switch | Switching between schemes triggers taxation each time for investors. | No tax liability on the scheme due to rebalancing of underlying scheme | |
| Return Profile | Range bound with low volatility | Contingent on prevailing arbitrage spreads in the equity market | The debt portion endeavours to generate relatively better risk adjusted returns, while the arbitrage component seeks to captures equity market spreads |
| Tax Rate % | Applicable Slab Rate | STCG (<12 months): 20% | STCG (<24 months): Slab Rate |
| LTCG (>12 months): 12.5% | LTCG (>24 months): 12.5% | ||
(source: https: nipponindiaim.com)
Tax Benefit Illustration
| Mutual Fund | ||
|---|---|---|
| Type | Specified Mutual Fund | Fund of Fund Scheme with < 65% Debt allocation |
| Taxation | Slab rate | STCG (<24 months): Slab Rate |
| LTCG (>24 months): 12.5% | ||
| Amount Invested | 100000 | 100000 |
| Investment Period | Any holding Period $ | > 24 months |
| Assumed CAGR (% | 7% | 7% |
| Market value of Investment | 114490 | 114490 |
| Capital Gains | 14490 | 14490 |
| Tax Rate | 30% | 12.50% |
| Tax on Capital Gains | 4347 | 1811.25 |
| Post Tax Gains | 10143 | 12678.75 |
| Post Tax Value of Investment | 110143 | 112678.75 |
| Post Tax CAGR % | 4.95% | 6.15% |
CAGR: Compounded Annual Growth Rate. This table is only for illustrative purposes and based on assumption. The above illustration should not be construed to be an investment or tax advice of any nature. Actual results may vary. This example assumes a30%taxslab and is solely for demonstrating tax calculations and excludes cess and surcharge in tax calculations $ Investment into specified mutual fund scheme always subject to short-term capital asset irrespective of the holding period
(source: https: nipponindiaim.com)
Scheme Details
- Investment Objective:
- The primary investment objective of the scheme is to achieve stable returns while navigating market volatilities for its investors. This objective will be pursued by strategically investing in a diversified portfolio of open-ended debt-oriented schemes, and units of Arbitrage funds of Nippon India Mutual Fund or any other Mutual Fund(s). There is no assurance that the investment objective of the Scheme will be achieved.
- Asset Allocation:
-
Instruments Indicative Asset Allocation
(% of total assets)Risk Profile Minimum Maximum Units of Arbitrage Fund and Debt Mutual Fund Schemes# 95% 100% Medium to High Debt & Money Market Instruments^ 0% 5% Low to Medium #The exposure to units of Debt oriented mutual fund schemes & Debt & Money Market instruments ^including Triparty repo on Government securities or treasury bills, cash & cash equivalents shall be below 65% at all points of time.
- Type of Scheme:
- An open-ended Hybrid Fund of Fund scheme investing in Debt and Arbitrage Funds.
(source: https: nipponindiaim.com)
Nippon India Income Plus Arbitrage Active Fund of Fund NFO
Application Form
Scheme Documents
(source: https: nipponindiaim.com)
Nippon India Income Plus Arbitrage Active Fund of Fund NFO Riskometer:
(source: https: nipponindiaim.com)