NFO Alert: SBI Mutual Fund Launches New Arbitrage-Based Fund of Fund

SBI Mutual Fund has introduced a new open-ended scheme named the SBI Income Plus Arbitrage Active Fund of Fund. The New Fund Offer (NFO) will open on April 23, 2025, and close on April 30, 2025. The fund follows a Fund of Fund structure, meaning it will invest in other mutual fund schemes rather than directly in market instruments.

Structure and Allocation

The scheme will invest in a mix of actively managed debt-oriented schemes and arbitrage mutual fund schemes. According to the fund’s investment strategy, 50-65% of the portfolio will be allocated to debt-oriented mutual fund schemes. Between 35%-50%  will go into arbitrage schemes. Up to 5% of the portfolio may be invested in money market instruments, tri-party repo, reverse repo, and cash equivalents.

Benchmark and Risk Profile

The benchmark for the scheme is a composite index consisting of 65% Nifty Composite Debt Index and 35% Nifty 50 Arbitrage Index. The risk classification for the scheme is low to moderate, as per the scheme’s riskometer.

Application Terms

The minimum investment required is ₹5,000. Further investments can be made in multiples of ₹1,000. The scheme offers systematic investment plan (SIP) options with multiple frequency choices, including daily, weekly, monthly, quarterly, semi-annual, and annual. There is no lock-in period, and no exit load will be applicable for redemptions.

Read More: How Is SBI Jan Nivesh Different from Other SBI Mutual Fund Schemes?

Fund Management

The scheme will be managed by Ardhendu Bhattacharya, who has been associated with SBI Mutual Fund since 2019 and currently oversees several debt and hybrid mutual fund products.

About the Fund House

SBI Mutual Fund is a joint venture between the State Bank of India and Amundi Asset Management. It is currently the largest asset management company in India by assets under management, with total AUM exceeding ₹10 lakh crore.

Conclusion

The fund is available for subscription for a limited period in April 2025 and offers a mixed allocation approach through investments in debt and arbitrage mutual fund schemes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.