NFO: Union MF launches Income Plus Arbitrage Active FoF, Close on 05 June

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Chandigarh: Union Mutual Fund launches an open-ended Fund of Fund combining arbitrage and debt schemes, with NFO open from May 22 to June 5, 2025.

Union Mutual Fund has introduced a new open-ended scheme – Union Income Plus Arbitrage Active Fund of Fund (FoF). The fund combines exposure to arbitrage strategies and debt-oriented mutual fund schemes. Subscriptions for the New Fund Offer (NFO) open on May 22, 2025, and close on June 5, 2025. The scheme will reopen for continuous purchase and redemption within 5 working days from the date of allotment.

Fund Overview

Fund Name: Union Income Plus Arbitrage Active FOF Reg G
Type: Open-ended
Category: Fund of Funds – Debt
Launch Date: May 22, 2025
Close Date: June 5, 2025
Minimum Investment: ₹1,000
Plans: Growth, IDCW
Lock-in Period: NA
Exit Load: 0
Riskometer: Low to Moderate

The fund invests in units of existing arbitrage and debt mutual fund schemes. The asset allocation will be managed actively, with up to 65% of the portfolio allocated to arbitrage or debt-oriented schemes, depending on prevailing market conditions. The goal is to generate income over a medium- to long-term period.
Tax Treatment

If the fund maintains an allocation in arbitrage funds to meet equity classification thresholds, it could qualify for equity-like taxation. This treatment is applicable if units are held for more than 2 years. The structure follows the latest tax regulations applicable to Fund of Funds (FoFs).

The fund offers exposure to arbitrage and debt schemes under a single umbrella and will operate within the tax and regulatory framework applicable to FoFs.