The investment objective of the scheme is to generate regular income and capital appreciation by investing in a mix of units of actively managed debt-oriented schemes and arbitrage mutual fund schemes. The scheme’s first-tier benchmark is a blend of 65% Nifty Composite Debt Index and 35% Nifty 50 Arbitrage Index.
“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 tax-efficient option for conservative investors, HNIs, corporates managing treasuries, and anyone seeking optimal post-tax returns over a 2–3-year horizon,” said D. P. Singh, Deputy MD & Joint CEO, SBI Funds Management.
The scheme will primarily invest 35%–50% of its assets in units of actively managed arbitrage mutual fund schemes, a minimum of 50% and up to 65% 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 fund follows a Fund of Fund (FoF) structure and shall invest in the units of existing mutual fund schemes of SBI Mutual Fund and/or other mutual funds.
Investments in actively managed debt-oriented schemes will be based on an evaluation of macroeconomic factors, policy rates, liquidity expectations, and demand-supply dynamics, enabling active management of credit risk and interest rate sensitivity. The scheme will exclude investments in underlying schemes classified under Cell C III of the PRC matrix.
The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter, with additional investments allowed from Rs 1,000 onwards in similar multiples. Investors can also opt for daily, weekly, monthly, quarterly, semi-annual, and annual Systematic Investment Plans (SIPs).
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The fund will be managed by Ardhendu Bhattacharya. The scheme is suitable for investors seeking regular income and capital appreciation, and preferring exposure to actively managed debt-oriented and arbitrage mutual fund schemes.