New Delhi, Feb 27: HDFC Asset Management Company Limited, Investment Manager to HDFC Mutual Fund, has announced the launch of HDFC Income Plus Arbitrage Omni FOF, an open-ended Fund of Funds (FoF) scheme designed to provide investors exposure to arbitrage schemes and active/passive debt-oriented schemes. The New Fund Offer (NFO) opens on February 27, 2026, and closes on March 11, 2026.
The Scheme will dynamically manage its allocation, adjusting portfolio duration and credit exposure based on factors such as interest rate outlook, RBI monetary policy, yield curve dynamics, liquidity conditions, and arbitrage spreads between cash and futures markets. The portfolio will maintain at least 35% exposure to arbitrage schemes, while the remaining allocation will be invested in debt-oriented mutual fund schemes, debt securities, and money market instruments. This structure allows tax-efficient investment and provides the benefit of active asset allocation without triggering taxation on switching between underlying schemes.
Mr. Navneet Munot, Managing Director & CEO, HDFC AMC, commented,
“In today’s fixed income environment, investors seek solutions that combine income potential with prudent risk management. HDFC Income Plus Arbitrage Omni FOF offers a dynamic approach to allocating across arbitrage and debt schemes, aiming to build yield while managing volatility.”
The Scheme will be managed by Mr. Bhavyesh Divecha and Mr. Praveen Jain. Mr. Jain added,
“With yields supported by benign inflation, ample system liquidity, and the expectation of stable policy rates, accrual assets appear well-positioned. The FoF structure allows investors an easy, convenient, and tax-efficient way to diversify across arbitrage and debt schemes.”
Scheme Details:
-
Benchmark: 40% NIFTY50 Arbitrage Index (TRI) & 60% NIFTY Short Duration Debt Index
-
Minimum Investment: ₹100 during NFO period and ongoing offer
-
Exit Load: 1% if redeemed or switched within 18 months
-
Taxation: 12.5% for holding periods exceeding 24 months, plus applicable surcharge and cess
Investors are advised to consult their professional tax advisors regarding individual tax implications.