New Delhi, February 27, 2026: HDFC Asset Management Company Limited (HDFC AMC), Investment Manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses, has announced the launch of HDFC Income Plus Arbitrage Omni FOF (the “Scheme”), an open-ended Fund of Fund scheme designed to provide investors exposure to arbitrage schemes and active / passive debt-oriented schemes. The New Fund Offer (NFO) opens on February 27, 2026 and closes on March 11, 2026.
HDFC Income Plus Arbitrage Omni FOF will dynamically manage its allocation by adjusting portfolio duration and credit exposure based on factors such as the interest rate outlook, RBI monetary policy, yield curve dynamics, liquidity conditions and arbitrage spreads between the cash and futures markets. The Scheme will aim to maintain the exposure to units of debt-oriented mutual fund schemes, debt securities and money market instruments below 65%. At least 35% of the portfolio will be allocated to arbitrage schemes. By virtue of this allocation strategy, the Scheme will be tax-efficient*. In addition to this, the FOF structure seeks to provide investors the benefit of active asset allocation without triggering taxation on switching between underlying schemes.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “In today’s fixed income environment, investors are increasingly seeking solutions that combine income potential and prudent risk management. With HDFC Income Plus Arbitrage Omni FOF, we endeavour to provide a solution that will allow investors to dynamically allocate across arbitrage schemes and active and passive debt-oriented schemes, with the objective of building yield potential while aiming to manage volatility. Anchored in our rigorous credit evaluation process and execution discipline, this product seeks to provide a differentiated approach to accrual investing.”
This Scheme will be managed by Mr. Bhavyesh Divecha and Mr. Praveen Jain. Commenting on the launch, Praveen mentioned, “Currently, while growth remains healthy, we remain cautiously optimistic on the yields in view of benign inflation outlook, ample system durable liquidity in FY27 and expectation of low policy rates to continue in the foreseeable future. Furthermore, in our view, most negative sentiments look to be largely priced into the current yield levels, thereby providing scope for yields to drift lower hereon. Considering RBI is close to end of rate cut cycle, accrual assets appear to be well- placed, with the spreads of non-AAA corporate bonds sitting at a higher level versus AAA corporate bonds, and higher than its long-term averages. This could create room for spread compression, along with possible easing of yields over the medium term. Hence, investors could explore investing in HDFC Income Plus Arbitrage Omni FOF – an easy and convenient way to allocate across units of arbitrage schemes and active and passive debt-
oriented schemes in a tax-efficient* manner.”
The benchmark for this Scheme is 40% NIFTY 50 Arbitrage Index (TRI) and 60% NIFTY Short Duration Debt Index. Investors can invest with a minimum amount of ₹100 during the NFO period and during the continuous offer period after the scheme reopens for subscription and redemption. There is no upper limit on investment, and allotment of units will be done after deduction of applicable stamp duty, if any. An exit load of 1% is applicable if units are redeemed or switched out within 18 months from the date of allotment.
*12.5%^ tax rate for holding period exceeding 24 months. ^Surcharge as applicable + Health and Education Cess applicable at 4% on aggregate of base tax + surcharge. In view of the individual nature of tax consequences, each investor is advised to consult his / her own professional tax advisor. The information given here is neither a complete disclosure of every material fact of Income Tax Act (1961), nor it constitutes a legal or tax advice.
