The UTI Income Plus Arbitrage Active Fund of Fund is an open-ended mutual fund scheme that aims to generate long-term capital appreciation by investing in units of debt-oriented and arbitrage mutual fund schemes. The scheme is launched by UTI Mutual Fund and is categorized under Other Scheme – FoF Domestic. The New Fund Offer (NFO) opens on March 21, 2025, and closes on April 3, 2025. The minimum subscription amount is Rs 1,000, with no entry or exit load charges. Please note that there is no assurance that the investment objective will be achieved.
| NFO Details | Description |
| Fund Name | UTI Income Plus Arbitrage Active Fund of Fund – Direct (G) |
| Fund Type | Open Ended |
| Category | Other Scheme – FoF Domestic |
| NFO Open Date | 21-March-2025 |
| NFO End Date | 03-April-2025 |
| Minimum Investment Amt | ₹100/- and 1₹ amount thereafter |
| Entry Load | -Nil- |
| Exit Load |
-Nil- |
| Fund Manager | Mr. Anurag Mittal |
| Benchmark | 60% CRISIL Short Duration Debt A-II Index + 40% Nifty 50 Arbitrage TRI |
Investment Objective and Strategy
Objective:
The UTI Income Plus Arbitrage Active Fund of Fund – Direct (G) shall seek to generate long-term capital appreciation by investing in units of debt oriented mutual fund schemes and arbitrage mutual fund schemes. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
What are the Investment Strategies of UTI Income Plus Arbitrage Active Fund of Fund – Direct (G)?
The fund seeks to optimize risk-adjusted returns by allocating investments across various domestic debt oriented mutual fund schemes and arbitrage mutual fund schemes.
Since the underlying schemes are open ended, it could facilitate active management of the portfolio.
The fund manager based on their outlook will decide on the weightage of each underlying fund.
The allocation across the underlying funds will be done taking into consideration the prevailing interest rate scenario, yield curve, yield spread, liquidity, general macroeconomic condition, political and fiscal environment, inflationary expectations, other economic considerations, and arbitrage opportunities in the cash and derivatives segments of the equity market.
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What are the risks associated with this UTI Income Plus Arbitrage Active Fund of Fund – Direct (G)?
UTI Income Plus Arbitrage Active Fund of Fund – Direct (G) comes with several risks due to its focus on investing in debt-oriented and arbitrage mutual fund schemes. As with any investment in debt instruments, there is exposure to interest rate risk, credit risk, and liquidity risk. Additionally, the fund may experience volatility linked to fluctuations in equity markets, particularly in the arbitrage segment. Changes in macroeconomic factors like inflation, fiscal policies, and political instability can impact returns. Since the fund relies on arbitrage opportunities in the cash and derivatives market, there is also a risk that such opportunities may not always yield expected returns, impacting overall performance. Furthermore, the lack of assurance in achieving the investment objective increases the uncertainty associated with this NFO.
What type of investor should invest in UTI Income Plus Arbitrage Active Fund of Fund – Direct (G)?
This NFO is suitable for investors with a moderate risk tolerance who are looking to diversify their portfolios through a combination of debt-oriented and arbitrage mutual fund schemes. It is ideal for long-term investors seeking capital appreciation, especially those looking to capitalize on domestic debt market dynamics and arbitrage opportunities in the equity market. Investors who have an understanding of macroeconomic factors, interest rate movements, and equity market trends would benefit from this NFO. However, this scheme may not be suitable for risk-averse investors due to its exposure to both debt and equity market fluctuations.
