Tata Mutual Fund Launches New Fund of Fund (FoF) NFO
Investments can begin with ₹5000. This fund will invest in schemes based on debt and arbitrage strategies.
NFO Alert: Tata Mutual Fund has launched a new scheme for investors called the Tata Income Plus Arbitrage Active Fund of Fund (FoF). This is an open-ended scheme that primarily invests in mutual funds based on debt-oriented plans and arbitrage strategies.
This New Fund Offer (NFO) commenced on May 5, 2025, and investments can be made until May 19, 2025. The fund's continuous sale and repurchase process will begin on May 25, 2025.
Invest with just ₹5,000, No Lock-in Period
Investment in this scheme can begin with just ₹5,000. Subsequent investments can be made in multiples of ₹1. Importantly, there is no lock-in period for this scheme.
However, investors withdrawing or switching funds within 30 days of the allotment date will incur a 0.25% exit load.
Investment Strategy: Focus on Debt and Arbitrage Schemes
This scheme will primarily invest in various debt and arbitrage-based schemes of Tata Mutual Fund. If necessary, it may also invest in schemes from other Asset Management Companies (AMCs).
The fund manager will determine the investment allocation across various schemes based on current market conditions and future prospects.
Fund Manager and Benchmark
This scheme is managed by Abhishek Sonthalia and Shailesh Jain. Its benchmark is:
CRISIL Composite Bond Index (60%)
NIFTY 50 Arbitrage TRI (40%)
Investment Portfolio: Where will the investments be made?
According to the Scheme Information Document (SID), the FoF portfolio will be structured as follows:
55% to 65% investment in debt-based mutual funds
35% to 40% investment in arbitrage-based equity funds
0% to 5% investment in money market and other instruments
Who is this scheme for?
This scheme is suitable for investors seeking long-term capital growth with moderate risk. If you aim for balanced returns through mutual funds and are comfortable with debt and arbitrage strategies, this option may be beneficial.
This scheme is categorized as "Low to Moderate Risk," making it a potentially secure option.
