Income Plus Arbitrage Debt with a Difference

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 a holding period greater than 24 months, and at the investor’s income tax slab rate^ for a holding period less than or equal to 24 months.

What does HDFC Mutual Fund have to offer?

At the current juncture, fixed income markets provide a good opportunity in view of easing inflation, attractive corporate bonds spreads (over G-Sec), expectations of more rate cuts and improved liquidity. Hence, investors could consider investing in our Fund of Funds named HDFC Income Plus Arbitrage Active FOF (formerly HDFC Dynamic PE Ratio Fund of Funds), in line with their individual risk appetite, as it has flexibility to allocate assets across select debt-oriented schemes.

**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

> Equity portion of Arbitrage Fund will be 100% hedge

> Tax efficient vehicle considering that capital gains is taxed at 12.5%^ tax rate for holding period exceeding 24 months

> No taxation incurred on switching between underlying schemes

^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. *Effective from March 19, 2025, HDFC Dynamic PE Ratio Fund of Funds has undergone a fundamental attribute change along with the change in name from “HDFC Dynamic PE Ratio Fund of Funds” to “HDFC Income Plus Arbitrage Active FOF”. For more details, please refer to Change in Fundamental Attributes of HDFC Dynamic PE Ratio Fund of Funds , Change in Name and Exit Load of HDFC Dynamic PE Ratio Fund of Funds , Change in Fund Manager and SID – HDFC Income Plus Arbitrage Active FOF.