# Nippon India launches tax-friendly Income Plus Arbitrage Fund of Fund 2026-08-12T19:46:47+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Nippon India Mutual Fund has launched the Income Plus Arbitrage Omni Fund of Fund, an open-ended hybrid fund of funds that invests in domestic active and passive debt-oriented and arbitrage schemes. Its key selling point is tax treatment: under the Income Tax Act 2025, a fund of funds with less than 65 per cent in debt held for over 24 months qualifies for long-term capital gains tax at 12.5 per cent, versus slab rates for specified mutual funds. For an investment of Rs 1 lakh at 8 per cent CAGR over 24 months, the fund yields a post-tax value of Rs 1,14,560 compared to Rs 1,11,648 for a fund taxed at 30 per cent. Rebalancing within the fund does not trigger tax for investors. The fund targets investors with a minimum two-year horizon, and its riskometer is rated Moderate. ## Coverage - thehindubusinessline.com Tags: arbitrage fund, fund of fund, LTCG, mutual fund, Nippon India, tax efficiency Canonical: https://indianopinion.org/nippon-india-launches-tax-friendly-income-plus-arbitrage-fund-of-fund/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nippon-india-launches-tax-friendly-income-plus-arbitrage-fund-of-fund/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.