Bengaluru, 20 November 2025: Mahindra Manulife Mutual Fund, a joint venture between Mahindra & Mahindra Financial Services Limited (‘Mahindra Finance’)and Manulife Investment Management (Singapore) Pte. Ltd has announced the launch of an open-ended fund of fund scheme, Mahindra Manulife Income Plus Arbitrage Active FOF, a product for investors seeking relatively stable and better post tax returns over a holding period of more than 24 months, as per extant income tax laws. The New Fund Offer (NFO) opens on November 21, 2025, and closes on December 1, 2025.
The scheme aims to generate long-term capital appreciation by investing in a mix of actively managed debt schemes and arbitrage schemes, offering flexibility to navigate changing market conditions. This blend seeks to help investors manage reinvestment risks in fixed income and benefit of arbitrage spread in volatile market with tax efficiency for holding periods beyond 24 months.
Anthony Heredia, MD & CEO, Mahindra Manulife Investment Management Pvt. Ltd., said, “Income Plus Arbitrage Active FoF has been designed as an all-season proposition that brings together the strengths of debt and arbitrage strategies. In a market where spreads, interest rate cycles, and reinvestment risks often create uncertainty, this product offers a disciplined approach aimed at better post-tax outcomes.”
The strategy is positioned to help investors manage key challenges in today’s market—reinvestment risk in fixed income, fluctuating arbitrage spreads, and higher slab-based taxation on traditional debt instruments. The structure of the FoF aims to deliver relatively steadier outcomes along with long-term capital gains tax at 12.5% for holding periods beyond 24 months*.
Rahul Pal, CIO – Fixed Income, Mahindra Manulife Investment Management Pvt. Ltd said, “From a fixed income standpoint, the Income Plus Arbitrage Active FoF gives us the ability to balance interest rate dynamics, credit spreads and market liquidity within one solution. The debt portion will be managed through active duration positioning and a disciplined credit framework, while the arbitrage allocation helps smoothen volatility during periods of rate uncertainty. This combination allows us to respond to evolving macro conditions and aims to deliver a relatively steadier experience for investors over a medium-term horizon.”
The scheme will be managed by Mr. Amit Garg, Mr. Rahul Pal, and Mr. Mitul Doshi. It will follow Mahindra Manulife’s investment process, combining active duration management, credit evaluation, and tactical allocation to arbitrage opportunities.
*As per extant income tax laws. Please refer Scheme Information Document for more details. Investors are advised to consult their professional tax advisors before taking investment decision.
For detailed asset allocation pattern, please refer SID/KIM of the Scheme available on our website www.mahindramanulife.com or visit the nearest ISC.
**The product labelling /risk level assigned for the Scheme during the New Fund Offer is based on internal assessment of the Scheme’s characteristics or model portfolio and the same may vary post New Fund Offer when the actual investments are made.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer:
The views expressed here in this document are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the user. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the user. This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. While utmost care has been exercised while preparing this document, Mahindra Manulife Investment Management Private Limited (MMIMPL) does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The data/statistics, wherever provided, are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. Users of this document should rely on information / data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Neither Mahindra Manulife Mutual Fund, MMIMPL nor Mahindra Manulife Trustee Private Limited, its directors or associates shall be liable for any damages that may arise from the use of the information contained herein.
For detailed asset allocation, investment strategy, scheme specific risk factors and more details, please read the Scheme Information Document and Key Information Memorandum of Mahindra Manulife Income Plus Arbitrage Active FOF available at ISCs of MMIMPL and Computer Age Management Services Limited and also available on www.mahindramanulife.com.
Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.
The information contained herein are not for distribution and do not constitute an offer to buy or sell or solicitation of an offer to buy or sell any schemes/Units of Mahindra Manulife Mutual Fund / securities in the United States of America (‘US’) and/or Canada or for the benefit of US Persons (being persons falling within the definition of the term “US Person” under the US Securities Act of 1933 or as defined by the U.S. Commodity Futures Trading Commission, as amended) or residents of Canada as defined under applicable laws of Canada.
