UTI Mutual Fund Files Draft for Income Plus Arbitrage Active Fund of Fund

UTI Mutual Fund filed a draft offer document with SEBI yesterday, February 24, 2025, for the launch of UTI Income Plus Arbitrage Active Fund of Fund, an open-ended Fund of Funds (FoF). The scheme will invest in a combination of debt-oriented mutual funds and arbitrage mutual funds​.

Fund Details

• NFO Price: ₹10 per unit
• Minimum Investment: ₹1,000 (and multiples of ₹1 thereafter)
• Benchmark: 60% CRISIL Short Duration Debt A-II Index + 40% Nifty 50 Arbitrage TRI
• Liquidity: Investors can buy and redeem units at applicable Net Asset Value (NAV) on any business day
• Entry & Exit Load: Nil
• Fund Manager: Anurag Mittal​

The fund aims to generate long-term capital appreciation by investing in debt and arbitrage mutual funds. However, there is no guarantee of achieving this objective​.

Asset Allocation

The scheme will invest within these ranges:

• Debt-oriented mutual funds: 35%-65%
• Arbitrage mutual funds: 35%-65%
• Money market instruments: 0%-5%​

The fund will not invest in derivatives, credit default swaps, REITs, InvITs, or securitized debt. It also does not allow stock lending or short selling​.

Plans & Expenses

• Available Plans: Only Growth Option (no IDCW payouts)
• Expense Ratio: Up to 2.00% of daily net assets
• Additional Expenses: Up to 0.05%
• Minimum SIP Investment: ₹500 for daily, weekly, and monthly SIPs​

NFO Period

While the UTI Income Plus Arbitrage Active Fund of Fund has been filed with SEBI, the exact dates for the New Fund Offer (NFO) are yet to be announced. However, as per regulatory norms, the NFO will remain open for a minimum of 3 working days and a maximum of 15 calendar days. The fund house will provide updates once the final dates are confirmed​. 

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.