Axis Mutual Fund has announced the launch of the Axis Income Plus Arbitrage Passive FOF, an open-ended scheme aimed at investors seeking stable and tax-efficient returns. The New Fund Offer (NFO) period will run from 28 October to 11 November 2025. This hybrid fund is managed by Devang Shah (Head – Fixed Income), Aditya Pagaria (Senior Fund Manager), Hardik Satra (Senior Fund Manager), and Karthik Kumar (Fund Manager).
The product is tailored for individuals with a conservative risk profile who aim to optimise post-tax yields while maintaining predictable performance.
B. Gopkumar, Managing Director & CEO of Axis Asset Management Company, stated: “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. In a market where predictability and post-tax returns matter more than ever, this fund is designed to empower investors with a smarter way to approach fixed income investing.”
The scheme will allocate approximately 50–65% of its portfolio to passive debt-oriented mutual fund schemes, targeting high-quality instruments with a roll-down strategy designed to accrue income and reduce interest rate risk.
The remainder, about 35–50%, will be invested in arbitrage funds using fully hedged equity positions to generate returns with minimal volatility, thereby avoiding direct market exposure. This dual-component structure is intended to deliver debt-like returns with enhanced tax advantages.
Ashish Gupta, Chief Investment Officer at Axis AMC, commented: “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.
“By leveraging passive roll-down strategies and fully hedged arbitrage exposure, the fund is designed to offer a predictable and transparent investment experience.” This launch comes at a time when the demand for predictable, post-tax efficient investment options is rising in India’s mutual fund industry.
Within the competitive landscape, Axis Mutual Fund competes with established players such as HDFC Mutual Fund, SBI Mutual Fund, and ICICI Prudential Mutual Fund, each offering a wide suite of fixed income and hybrid solutions targeting similar investor segments. The hybrid approach of Axis aims to differentiate itself by blending passive and arbitrage strategies to address evolving investor needs.