Invesco Mutual Fund launches Income Plus Arbitrage Fund of Fund
This open-ended scheme is designed to provide investors with a balanced mix of debt-oriented and equity arbitrage schemes.
- Jul 2, 2025,
- Updated Jul 2, 2025 3:13 PM IST
Invesco Mutual Fund has announced the launch of its latest offering, the Invesco India Income Plus Arbitrage Active Fund of Fund. This open-ended scheme is designed to provide investors with a balanced mix of debt-oriented and equity arbitrage schemes, aiming for a low-risk income solution with enhanced tax efficiency. The new fund offer (NFO) is set to close on 16 July 2025, providing potential investors with a limited window to participate.
The fund will dynamically balance its portfolio between debt and arbitrage allocations based on prevailing market conditions. Approximately 60–65% of the fund will be allocated to debt-oriented schemes, focusing on AAA-rated corporate bonds and government securities within a maturity range of 2 to 15 years.
The remaining 35–40% will be allocated to the Invesco India Arbitrage Fund, which is expected to offer fully hedged equity exposure. Gains from investments held for over 24 months will attract a 12.5% long-term capital gains tax, making it more tax-efficient compared to traditional debt funds taxed at individual slab rates.
Invesco Mutual Fund requires a minimum investment of ₹1,000 for this scheme, with systematic investment plans (SIP) also starting at the same amount. The scheme features no exit load, enhancing its appeal for investors seeking flexibility. Invesco Asset Management (India) manages over ₹1.25 lakh crore in assets, while its parent company, Invesco Ltd., oversees $1.8 trillion globally. This new fund continues Invesco's strategy to offer innovative investment solutions that meet diverse investor needs in the Indian market.
Invesco Mutual Fund has announced the launch of its latest offering, the Invesco India Income Plus Arbitrage Active Fund of Fund. This open-ended scheme is designed to provide investors with a balanced mix of debt-oriented and equity arbitrage schemes, aiming for a low-risk income solution with enhanced tax efficiency. The new fund offer (NFO) is set to close on 16 July 2025, providing potential investors with a limited window to participate.
The fund will dynamically balance its portfolio between debt and arbitrage allocations based on prevailing market conditions. Approximately 60–65% of the fund will be allocated to debt-oriented schemes, focusing on AAA-rated corporate bonds and government securities within a maturity range of 2 to 15 years.
The remaining 35–40% will be allocated to the Invesco India Arbitrage Fund, which is expected to offer fully hedged equity exposure. Gains from investments held for over 24 months will attract a 12.5% long-term capital gains tax, making it more tax-efficient compared to traditional debt funds taxed at individual slab rates.
Invesco Mutual Fund requires a minimum investment of ₹1,000 for this scheme, with systematic investment plans (SIP) also starting at the same amount. The scheme features no exit load, enhancing its appeal for investors seeking flexibility. Invesco Asset Management (India) manages over ₹1.25 lakh crore in assets, while its parent company, Invesco Ltd., oversees $1.8 trillion globally. This new fund continues Invesco's strategy to offer innovative investment solutions that meet diverse investor needs in the Indian market.