Tax-efficient income solutions: Union Income Plus Arbitrage Active FOF..!

Investment Guru Saturday, May 24, 2025 0

Tax-efficient income solutions: Union Income Plus Arbitrage Active FOF..!

Union Mutual Fund has launched Union Income Plus Arbitrage Active FOF. This is an open-ended scheme that will combine debt investments with arbitrage strategies.

Union Income Plus Arbitrage Active FOF is crafted with an aim to help investors navigate their investments without the burden of constant monitoring. By blending arbitrage and debt funds under a single structure, it simplifies access to professionally managed, tax-efficient income solutions.

Higher taxation on conventional debt-oriented funds tends to impact net returns. This fund aims to offer better tax adjusted outcomes, making it a compelling choice for investors seeking tax efficient income generation within their portfolio.

The fund seeks to deliver medium- to long-term income through dynamic allocation between arbitrage and debt fund components. It may invest up to 65% of its assets in arbitrage strategies or in debt-oriented funds, depending on market conditions.

Union Mutual Fund highlighted that the product is intended for investors looking for a tax-efficient income solution. If held for more than 24 months, the fund may qualify for equity-like long-term capital gains taxation at 12.5%.

The New Fund Offer (NFO) will close for subscription on June 5, 2025. The fund will reopen for ongoing subscriptions within five business days from the date of allotment.

Minimum SIP Investment is set to Rs. 500. Minimum Lumpsum Investment is Rs. 1000.

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