NFO Alert: UTI Mutual Fund Launches UTI Income Plus Arbitrage Active FOF

UTI Mutual Fund has launched a new open-ended scheme — UTI Income Plus Arbitrage Active FoF. The New Fund Offer (NFO) is open from March 21, 2025, to April 3, 2025. The fund will invest in a mix of debt-oriented mutual fund schemes and arbitrage mutual fund schemes.

Basic Details

• Scheme Type: Open-ended fund of fund
• Category: Debt: Others
• Fund House: UTI Mutual Fund
• Benchmark: 60% CRISIL Short Duration Debt A-II Index + 40% Nifty 50 Arbitrage TRI
• Fund Manager: Anurag Mittal
• Registrar & Transfer Agent: KFin Technologies Ltd.
• Risk Level: Moderate
• Exit Load: Nil
• Lock-in Period: None
• Plans: Growth

Investment Objective

The fund aims to generate long-term capital appreciation by investing in a mix of debt and arbitrage mutual fund schemes. It does not invest directly in equity or debt instruments, but rather in the units of other mutual fund schemes that follow these strategies.

Investment Strategy
The fund will allocate assets between two types of schemes:

• Debt-oriented mutual fund schemes
• Arbitrage mutual fund schemes

The debt portion focuses on short-duration instruments, while the arbitrage portion looks to benefit from pricing inefficiencies between cash and derivatives markets.

Minimum Investment and Plan Options

• Minimum Investment: ₹1,000 and in multiples of ₹1 thereafter
• Plans Available: Direct Plan and Regular Plan
• Options: Growth Option only (No IDCW option available)

Suitability

This scheme is structured for investors who want capital appreciation through a mix of low-risk debt and market-neutral arbitrage strategies. It does not guarantee returns and carries a moderate level of risk, as per the scheme’s riskometer.

Conclusion 

The UTI Income Plus Arbitrage Active FoF combines two types of mutual fund strategies under a single scheme. With no lock-in, no exit load, and a relatively low minimum investment requirement, it is available for subscription until April 3, 2025.

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.