JioBlackRock Mutual Fund has filed draft papers with the Securities and Exchange Board of India (SEBI) for the proposed JioBlackRock Income Plus Arbitrage Omni FOF. According to the Scheme Information Document, the scheme will be an open-ended Fund of Fund that will invest in units of active/passive debt-oriented funds and arbitrage funds. The scheme's investment objective is to generate income by investing in active/passive debt-oriented funds and arbitrage funds, though there is no assurance that the investment objective will be achieved.
Under normal circumstances, 95% to 100% of the scheme's total assets will be invested in units of mutual fund schemes. The allocation within this framework includes 35% to 65% in units of actively/passively managed debt-oriented funds and 35% to 65% in units of actively/passively managed arbitrage funds. The scheme may also invest 0% to 5% in debt and money-market instruments. As reported by the draft document, the scheme may invest in debt-oriented schemes and arbitrage schemes of JioBlackRock Mutual Fund as well as schemes of other mutual fund houses having similar objectives, strategy, asset allocation and other attributes.
The proposed scheme will use a composite benchmark comprising 60% NIFTY Composite Debt Index and 40% Nifty 50 Arbitrage Index (TRI). According to the draft document, the composition of the benchmark is in line with the intended asset allocation and investment objective of the scheme. The scheme is proposed for investors seeking income over a short to medium-term investment horizon and investment in units of active/passive debt-oriented funds and arbitrage funds.
The draft papers specify a minimum lump-sum investment of ₹500 during the NFO and on an ongoing basis. The minimum SIP amount will also be ₹500, with the minimum additional purchase amount set at ₹500. The scheme will have no exit load, as stated in the draft document. The proposed scheme will offer facilities including SIP top-up, SIP pause, Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP), subject to the terms specified in the Scheme Information Document.
The scheme includes a Model Portfolios Facility, a digital-only offering that provides investors with pre-constructed model portfolios comprising combinations of existing JioBlackRock Mutual Fund schemes. According to the draft, inclusion of the scheme in this facility will be at the sole discretion of the AMC. The scheme's portfolio will comprise active/passive debt-oriented funds and arbitrage funds, with its primary investment approach being in units of other mutual fund schemes.
