Invesco Mutual Fund unveils Invesco India Income Plus Arbitrage Active Fund of Fund

NFO opens: 2nd July 2025; Closes: 16th July, 2025

Bengaluru, July 7 2025: Invesco Mutual Fund today announced the launch of its new fund Invesco India Income Plus Arbitrage Active Fund of Fund. (An open-ended fund of fund scheme investing in units of actively managed debt-oriented schemes and equity arbitrage schemes). The fund is designed to provide investors with a smarter and simpler alternative to traditional debt investments.

This fund aims to generate income by investing in a dynamic mix of actively managed debt-oriented schemes and equity arbitrage schemes, offering a unique blend of stability, tax efficiency, and operational ease. The fund is ideal for investors seeking low-risk income with enhanced tax efficiency in the long term.

Key Highlights

• Underlying Investments

~60-65% will be invested in debt-oriented schemes, with a primary focus on Invesco India Debt Fund, based on market opportunities in high-quality Corporate Bond Funds that invest in AAA-rated corporate bonds and sovereign securities.

Given the current market dynamics, large allocation will be done in Invesco India Corporate Bond Fund (allocation to debt schemes will be less than 65%) which as of now provides participation in AAA rated corporate bonds largely in 2-5 year space and G-Sec in 5-15 year space.

~35–40% in Invesco India Arbitrage Fund, which captures price differentials between cash and derivatives markets with fully hedged equity exposure.

• Active Management

Dynamic rebalancing between debt and arbitrage based on market conditions ensures optimal risk-reward outcomes.

• Tax Efficiency

Investments held for over 24 months are taxed at a 12.5% long-term capital gains rate, compared to traditional debt funds taxed at slab rates.

Speaking at the launch, Mr. Vikas Garg, Head of Fixed Income & Fund Manager, Invesco Mutual Fund said “With the evolving investment landscape, conservative investors are seeking options that align with their risk tolerance while enhancing tax efficiency. As the fixed income market remains in a sweet spot, the Invesco India Income Plus Arbitrage Active Fund of Fund offers a smart alternative to traditional debt investments—an efficient combination of arbitrage and fixed income strategies that provides relatively lower risk & a better tax efficiency.”

The minimum investment amount during the NFO is Rs. 1,000/- and in multiples of Re. 1/- thereafter. For SIP investments, the minimum application amount is Rs. 1000/- and in multiples of Re. 1/- thereafter. No exit load will be charged to investors.