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New Fund Offers Stable Post-Tax Returns
19 Nov
Summary
- New fund aims for stable, tax-efficient returns over 24 months.
- Combines debt and arbitrage schemes for risk management.
- Investment strategy balances interest rates, credit, and liquidity.
Mahindra Manulife Mutual Fund has introduced the Income Plus Arbitrage Active FOF, an open-ended investment scheme catering to those seeking stable post-tax returns over a minimum holding period of 24 months. The fund's strategy involves a diversified investment approach, combining actively managed debt schemes with arbitrage schemes to navigate market fluctuations effectively.
The primary objective is to generate long-term capital appreciation by balancing the strengths of debt instruments and arbitrage opportunities. This dual strategy aims to manage reinvestment risks associated with fixed income and capitalize on arbitrage spreads in volatile markets, thereby enhancing tax efficiency for longer-term investors.
This new fund is positioned to address key investor concerns such as reinvestment risk in fixed income, fluctuating arbitrage spreads, and the impact of higher tax slabs on traditional debt instruments. By blending these strategies, the fund aims to deliver steadier outcomes and benefit from long-term capital gains tax rates.
