Axis Mutual Fund has launched a new fund offer (NFO) called the Axis Income Plus Arbitrage Passive Fund of Fund (FOF).
Subscriptions for this scheme open today, Tuesday, October 28, 2025, and will remain open until November 11, 2025.
This open-ended hybrid scheme aims to generate stable and tax-efficient returns by investing in a balanced mix of debt and arbitrage instruments through a passive investment strategy.
What Makes This Hybrid Fund Special
The Axis Income Plus Arbitrage Passive FOF invests in two major asset classes — passive debt-oriented mutual fund schemes and arbitrage funds.
It is designed to provide investors with a balanced option that maintains a low to moderate risk profile while aiming for better post-tax returns over the medium term.
50%–65% of the investment will go into debt-oriented mutual fund schemes.
35%–50% will be invested in arbitrage funds.
This combination offers the stability of debt and the tax benefits of equity, making it a well-balanced choice for investors.
Who Should Invest in This Scheme
This fund is ideal for investors looking for stable and predictable returns with low risk.
The debt portion uses a roll-down strategy, helping investors earn steady returns while minimizing interest rate risk.
The arbitrage portion holds fully hedged equity positions, reducing the effect of market volatility.
Additionally, this scheme offers T+2 redemption payout and no exit load, allowing investors to withdraw their money easily.
Tax Benefits of the Scheme
One of the biggest advantages of this fund is its favorable tax treatment.
Unlike regular debt funds or fixed deposits, the profits are not taxed at the investor’s income slab rate.
If the investment is held for more than 24 months, it qualifies for long-term capital gains (LTCG) tax at 12.5%.
This makes it more tax-efficient compared to traditional debt funds or FDs.
Fund Management and Key Details
Fund Managers: Devang Shah, Aditya Pagaria, Hardik Satra, and Kartik Kumar
Benchmark Index:
65% Nifty Short Duration Debt Index
35% Nifty 50 Arbitrage TRI
Important NFO Details:
Opening Date: October 28, 2025
Closing Date: November 11, 2025
Fund Type: Open-ended Hybrid FOF (Passive Debt + Arbitrage)
Minimum Investment: ₹100
Exit Load: Nil
Risk Level: Low to Moderate
NAV Disclosure: Every business day by 10 AM
