02-07-2025
Invesco Launches New Low-Risk Fund with Better Tax Benefits
Invesco Mutual Fund has launched a new fund called the Invesco India Income Plus Arbitrage Active Fund of Fund. This fund aims to offer investors a smart and simple alternative to traditional debt investments by combining the benefits of debt and arbitrage strategies.
The fund invests around 60–65% in debt-oriented schemes, mainly in high-quality AAA-rated corporate bonds and government securities, with a focus on the Invesco India Corporate Bond Fund. The remaining 35–40% is allocated to the Invesco India Arbitrage Fund, which earns from the price differences in the cash and futures markets, while fully hedging the equity exposure.
The fund is actively managed, meaning the investment mix between debt and arbitrage will change based on market conditions to give better risk-reward balance.
One of the key benefits of this fund is its tax efficiency. If the investment is held for more than 24 months, the capital gains are taxed at 12.5%, which is lower than the tax rates for traditional debt funds.
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 New Fund Offer (NFO) is ₹1,000, and the fund has no exit load, which means investors won't be charged any fee for withdrawing their money.
This fund is ideal for conservative investors looking for low-risk income and long-term tax benefits.
