The new fund offer (NFO) will close on July 16.
The scheme aims to offer investors a low-risk income solution with enhanced tax efficiency. It targets a blend of stability from fixed-income investments and price differential opportunities through arbitrage strategies.
The fund will allocate around 60–65% to debt-oriented schemes, primarily the Invesco India Debt Fund. It will focus on AAA-rated corporate bonds and government securities, particularly in the 2–15 year maturity segment. The remaining 35–40% will go to the Invesco India Arbitrage Fund, which offers fully hedged equity exposure.
The fund’s portfolio will be actively managed with dynamic rebalancing between debt and arbitrage allocations based on market conditions. Gains from investments held for over 24 months will be taxed at a 12.5% long-term capital gains rate, offering a more tax-efficient alternative to traditional debt funds taxed at individual slab rates.
Vikas Garg, Head of Fixed Income and Fund Manager at Invesco Mutual Fund, said, “This fund provides a smart alternative to traditional debt investments—an efficient combination of arbitrage and fixed income strategies that offers relatively lower risk and better tax efficiency.”
The minimum investment during the NFO is ₹1,000 and in multiples of Re 1 thereafter. SIP investments also start at ₹1,000. The scheme comes with no exit load.
Invesco Asset Management (India) manages over ₹1.25 lakh crore in assets across mutual funds, PMS, and offshore advisory services as of March 2025. Its parent, Invesco Ltd., managed $1.8 trillion in assets globally as of March 31, 2025.
First Published: Jul 2, 2025 12:54 PM IST