Mumbai: Tata Mutual Fund has launched the Tata Income Plus Arbitrage Active Fund of Fund. This FoF will allocate 65% its total corpus to Tata Corporate Bond Fund and 35% to Tata Arbitrage Fund.
Income Plus Arbitrage FoF is a new fund category and is similar to debt funds but with additional tax benefits compared to pure debt funds. Under this, any gains arising from FoFs will be considered long-term after 24 months. Such long-term capital gains will be taxed in line with equity taxation, i.e., at 12.5% on gains.
“In the current environment where debt yields are attractive and volatility in equity market persists, a hybrid strategy like this can potentially offer superior post-tax returns compared to traditional debt funds,” said Sailesh Jain, Fund Manager, Tata MF. “The fund’s active allocation and smart liquidity management aim at optimizing returns.”
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You can certainly see your skills in the work you write. The world hopes for even more passionate writers like you who aren’t afraid to say how they believe. All the time follow your heart.