Axis Mutual Fund, one of India’s leading asset management companies, has announced the launch of the Axis Income Plus Arbitrage Passive FOF, an innovative open-ended scheme designed to offer investors a blend of stability, predictability, and tax efficiency. The New Fund Offer (NFO) will open for subscription on Oct 28, 2025, and close on Nov 11, 2025. The fund is managed by Devang Shah (Head – Fixed Income), Aditya Pagaria (Senior Fund Manager), Hardik Satra (Senior Fund Manager), and Karthik Kumar (Fund Manager).
This new offering is tailored for investors seeking to optimize their post-tax returns while maintaining a conservative risk profile. The fund strategically combines investments in passive debt-oriented mutual fund schemes with arbitrage funds, creating a hybrid structure that aims to deliver consistent returns over a medium-term horizon. Commenting on the launch, B. Gopkumar, MD & CEO, Axis AMC said, “At Axis Mutual Fund, our focus has always been on delivering innovative, investor-centric solutions that combine performance with simplicity. The Axis Income Plus Arbitrage Passive FOF is a testament to this philosophy—offering a unique blend of stability, transparency, and tax efficiency.”
The scheme is structured to invest approximately 50–65% of its portfolio in passive debt-oriented mutual fund schemes, targeting high-quality – instruments. The scheme is benchmarked against a composite index comprising 65% NIFTY Short Duration Debt Index and 35% Nifty 50 Arbitrage TRI, reflecting its dual exposure. “With the current market environment offering attractive accrual opportunities and investors increasingly seeking tax-efficient alternatives to traditional fixed income products, the Axis Income Plus Arbitrage Passive FOF can be a timely solution,” said Ashish Gupta, CIO, Axis AMC. Moreover, the fund addresses key investor concerns—often referred to as the “5Ps”: Problem of Plenty, Predictability, Portfolio transparency, Post-tax returns, and Protection from credit events.