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A Fast-Emerging Mutual Fund Category for the Stability of your Portfolio
About Income Plus Arbitrage FOF
As per the framework stipulated by SEBI, the investment in underlying debt-oriented schemes will be less than 65% with the balance investment being allocated to Arbitrage Fund. By virtue of such an asset allocation, the capital gains on investments in this product will be taxed at 12.5%^ for an investment holding greater than 24 months, and at the investor’s income tax slab rate^ for an investment holding less than or equal to 24 months.
What does HDFC Mutual Fund have to offer?
At the current juncture, yields are likely to remain rangebound with a downward bias. Falling inflation and front loading of policy rate cuts is positive from yields perspective. Hence, investors could consider investing in our Fund of Funds named HDFC Income Plus Arbitrage Active FOF~ in line with their individual risk appetite, as it has flexibility to allocate assets across select debt oriented schemes.
HDFC Income Plus Arbitrage Active FOF formerly known as HDFC Dynamic PE Ratio Fund of Funds
Key Attributes of HDFC Income Plus Arbitrage Active FOF~:
- Aims to invest dynamically in units of Arbitrage and Debt Mutual Fund Schemes with less than 65% of its total assets in units of Debt Mutual Fund Schemes
- Tax efficient vehicle considering that capital gains is taxed at 12.5%^ tax rate for holding period exceeding 24 months
- Equity portion of Arbitrage Fund will be 100% hedged
- No taxation incurred on switching between underlying schemes of the FOF
~Effective from March 19, 2025, HDFC Dynamic PE Ratio Fund of Funds has undergone a change in name from “HDFC Dynamic PE Ratio Fund of Funds” to HDFC Income Plus Arbitrage Active FOF”.
^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.
HDFC Income Plus Arbitrage Active FOF formerly known as HDFC Dynamic PE Ratio Fund of Funds
Investors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes in which this Fund of Funds scheme makes investment (subject to regulatory limits)
Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to seek professional advice before investing.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
