# Income plus arbitrage funds see Rs 2,000 crore outflow in 2026 2026-08-17T16:47:47+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet (2 source reports) Investors pulled out around Rs 2,000 crore from income plus arbitrage funds in the first seven months of 2026, reversing last year's inflows of nearly Rs 21,000 crore, according to MFI360 Explorer. The category, launched in 2024, now has 22 schemes, with major houses like HDFC Mutual Fund and Sundaram Mutual Fund entering this year. These funds combine debt investments with arbitrage strategies and qualify for equity-like taxation by allocating at least 35% to arbitrage funds, making them attractive for investors in higher tax brackets. Average returns over the year to 11 August stood at 5.7%, lagging money market funds (6.22%) and arbitrage funds (5.73%), but ahead of short-duration debt funds (5.33%) and corporate debt funds (5.43%), Value Research data shows. Financial experts say the funds suit investors in the 25% or higher tax bracket with a two-to-three-year horizon. The two largest schemes are Kotak Income Plus Arbitrage Omni Fund (Rs 7,900 crore) and ICICI Prudential Income Plus Arbitrage Omni Fund (Rs 3,200 crore), both mainly holding AAA-rated debt. ## Coverage - livemint.com - livemint.com (2) This story was synthesised by AI from the 2 sources linked above. Updated: this story now draws on 2 sources. Last updated 2026-09-27T06:18:14+00:00. Tags: HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mahindra Asset Management, Sundaram Mutual Fund Canonical: https://indianopinion.org/income-plus-arbitrage-funds-see-rs-2000-crore-outflow-after-strong-2025/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/income-plus-arbitrage-funds-see-rs-2000-crore-outflow-after-strong-2025/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/