Nippon India MF Launches New Diversified Fund

Nippon India Mutual Fund (NIMF) has launched a new investment option called the Nippon India Income Plus Arbitrage Omni Fund of Fund. This open-ended scheme is designed to offer you a diversified portfolio by investing in a mix of other mutual funds.

It specifically targets domestic active and passive debt schemes, along with an arbitrage scheme. The goal is to provide potentially better risk-adjusted returns, lower volatility, and enhanced tax efficiency through a single investment.

Understanding the Fund’s Focus

This fund aims to create a balanced approach by combining different types of schemes. It’s benchmarked against a combination of two indices to track its performance.

The fund will be managed by Mr. Sushil Hari Prasad Budhia and Mr. Vikash Agarwal.

Key Numbers and Allocations

• Benchmark: 60% CRISIL Short Term Bond Index + 40% Nifty 50 Arbitrage Index.
• Asset Allocation: 95%-100% in domestic arbitrage and active/passive debt-oriented mutual fund schemes.
• Debt Instruments: A maximum of 5% in debt and money market instruments.
• Debt Exposure Limit: Debt exposure will remain below 65% at all times.

Tax Efficiency for Your Gains

A notable feature of this fund is its potential for tax efficiency on your long-term capital gains. This can make a real difference to your overall returns.

You could see a long-term capital gains taxation rate of 12.5% after holding your investment for more than 24 months. This specific rate applies provided the fund maintains its investment strategy of less than 65% in debt mutual fund schemes and debt/money market instruments.

When You Can Invest

The New Fund Offer (NFO) for the Nippon India Income Plus Arbitrage Omni Fund of Fund is opening soon. This is your window to invest initially.

The NFO is scheduled to open on August 17, 2026, and will close on August 31, 2026. Mark these dates if you’re considering this investment opportunity.