Baroda BNP Paribas Launches “Baroda BNP Paribas Income Plus Arbitrage Active Fund of Funds” — A Tax-Efficient# Investment Option for Investors
Baroda BNP Paribas Asset Management India Pvt Ltd(AMC) has launcheda new scheme, the Baroda BNP Paribas Income Plus Arbitrage Active Fund of Fund (FoF). This innovative FoF is designed for conservative investors who seek capital appreciation ®ular income and aims to earn higher post-tax returns than traditional debt instruments and debt funds#.
The New Fund Offer (NFO) opens on May 9, 2025, and closes on May 21, 2025. The scheme will invest 50–65% in units of Debt oriented mutual fund schemes of Baroda BNP Paribas Mutual Fund,30–50% in units of Arbitrage scheme of Baroda BNP Paribas Mutual Fundand 0-5% in Money Market instruments thus aiming to create a balanced and diversified portfolio that helps mitigate risk while enhancing return potential.
“For conservative investors looking beyond Fixed income products or conventional debt funds, this fund offers the potential to earn better post-tax returns, especially for holding periods beyond two years,” said Prashant Pimple, CIO – Fixed Income, AMC. “The concessional long-term capital gains (LTCG) tax rate of 12.5%#makes this an attractive option for long-term savers in higher tax brackets.”
The fund will be co-managed by Prashant Pimple and Neeraj Saxena, who each bring more than 25 and 21+ years of experience respectively in managing fixed income and hybrid fund strategies.
This scheme is ideal for investors seeking lower risk mutual funds, tax-efficient income solutions, and alternatives to fixed income products.
To learn more or invest in the Baroda BNP Paribas Income Plus Arbitrage Active FoF, visit: www.barodabnpparibasmf.in
Surcharge as applicable + Health and Education Cess applicable at 4% on aggregate of base tax + surcharge.
Long-term capital gains (LTCG) taxed at 12.5% if held for over 24 months (for debt allocation <65%) and no tax impact on investors on rebalancing
Investors are requested to take professional advice while making investment decisions. As announced in the Union Budget 2025.
“The AMC has estimated that upto 2.00% of the daily average net assets of the scheme will be charged to the scheme as expenses as permitted under Regulation 52 of SEBI (MF) Regulations. For the actual current expenses being charged, the investor should refer to the website of the Fund
Investors are requested to note that they will be bearing the recurring expenses of the fund of funds scheme in addition to the expenses of the underlying fund(s) in which the fund of funds scheme makes investment.
To know in detail about the features of the Scheme please refer the Scheme Information Document.”
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