Mirae Asset Income Plus Arbitrage Active FOF - NFO Details

Mirae Asset Income Plus Arbitrage Active FOF is an open-ended fund of fund scheme that dynamically allocates between arbitrage and debt mutual fund schemes. It aims to provide investors with long-term capital appreciation by investing in a mix of actively managed arbitrage and debt-oriented mutual fund schemes. The fund's unique structure allows for tax-efficient rebalancing and potentially lower long-term capital gains tax rates.

Key Features of Mirae Asset Income Plus Arbitrage Active FOF

Opening Date: June 16, 2025
Closing Date: June 30, 2025
Exit Load: 0.25%
Minimum Investment: ₹5,000
Benchmark Index: Nifty Short Duration Debt Index (60%) + Nifty 50 Arbitrage Index (TRI) (40%)

Objective of Mirae Asset Income Plus Arbitrage Active FOF

The investment objective of Mirae Asset Income Plus Arbitrage Active FOF-Dir(G) is to provide long-term capital appreciation from a portfolio investing in units of actively managed debt-oriented and Arbitrage mutual fund schemes. The Scheme does not guarantee or assure any returns. There is no assurance that the investment objective of the Scheme will be achieved.

Investment Strategy of Mirae Asset Income Plus Arbitrage Active FOF

Mirae Asset Income Plus Arbitrage Active FOF  is an actively managed Fund of Funds. The Scheme shall invest in units of actively managed Arbitrage Fund and Debt-oriented Mutual Fund schemes, subject to permissible limits. The Scheme has the flexibility to manage its allocation of its assets between the units of actively managed Arbitrage Fund and debt-oriented mutual fund schemes after evaluating various parameters like arbitrage spreads between the cash market and Future & Options market, credit risk, interest rate risk, liquidity risk and others as found suitable by the Fund Managers.

A part of the fund may be invested in Government Securities, T-Bills and Repo on Government Securities, as defined under the asset allocation table to meet liquidity requirements.

Investments made from the net assets of the Scheme would be per the investment objective of the Scheme and the provisions of the SEBI (MF) Regulations.

Risks Associated with Mirae Asset Income Plus Arbitrage Active FOF

• Some of the specific risk factors related to the Scheme include, but are not limited to, the following:  
• As the investors are incurring expenditure at both the Fund of Funds level and the scheme into which the Fund of Funds invests, the returns that they may obtain may be materially impacted or may at times be lower than the returns that investors may obtain by directly investing in such schemes.  
• As the Fund of Funds scheme will invest in underlying scheme(s), the expense charged are dependent on the structure of the underlying scheme (being different), which may lead to a non-uniform charging of expenses over a period of time.  
• In the Fund of Funds (FOF) factsheets and disclosures of the portfolio, will be limited to providing the particulars of the schemes invested at the FOF level will be limited, thus investors may not be able to obtain specific details of the investments of the underlying schemes.  
• The fund of funds scheme may have different returns/performance than the underlying scheme(s) due to various reasons. The return of the Fund of Funds may be adversely impacted by Total expense ratio, cash drag, timing and pricing difference b/w the subscription/redemption in the Fund of Funds v/s the underlying scheme, operational and transactional reasons, etc.  
• The scheme-specific risk factors of the underlying schemes become applicable where a fund of funds invests. Investors who intend to invest in Fund of Funds are required to and are deemed to have read and understood the risk factors of the underlying scheme in which the Fund of Funds scheme invests. Copies of the Scheme Information Documents of the various schemes of Mirae Asset Mutual Fund, which disclose the relevant risk factors, are available at the Investor/Customer Service Centres or may be accessed at www.miraeassetmf.co.in.  
• A Fund Manager managing the Fund of Funds scheme may also be the Fund Manager for any underlying schemes.

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Risk Mitigation Strategy by Mirae Asset Income Plus Arbitrage Active FOF

• Any investments in debt securities would be undertaken after assessing the associated credit risk, interest rate risk and liquidity risk. 
• The Scheme will also invest in debt securities and money market instruments.  
• The credit quality of the portfolio will be maintained and monitored using in-house research capabilities as well as inputs from external sources such as independent credit rating agencies.  The investment team will primarily use a top-down approach for taking an interest rate view, sector allocation, along with a bottom-up approach for security/instrument selection.  
• The bottom-up approach will assess the quality of security/instrument (including the financial health of the issuer) as well as the liquidity of the security.  
• Investments in debt instruments carry various risks such as interest rate risk, reinvestment risk, credit risk and liquidity risk, etc. Whilst such risks cannot be eliminated, they may be minimised through diversification.

What Type of Investor Should Invest in Mirae Asset Income Plus Arbitrage Active FOF?

The Mirae Asset Income Plus Arbitrage Active FOF (Fund of Funds) is best suited for investors seeking stable, moderate-risk returns with a medium- to long-term investment horizon. This fund is particularly attractive to investors looking for a tax-efficient way to generate income through a mix of arbitrage and debt-oriented mutual fund schemes.