The ICICI Prudential Income plus Arbitrage Omni Fund of Funds (FOF) has delivered a 3.6% return over the past six months, outperforming peers in the hybrid category. While the fund has shown consistent performance, investors should consider its 1% exit load and inherent market risks when evaluating this investment.
ICICI Prudential Income plus Arbitrage Omni Fund of Funds has emerged as a top performer within the hybrid fund-of-funds category, recording a 3.6% return over the last six months. This category of mutual funds is designed to offer a blend of debt and arbitrage strategies, typically aiming to generate regular income while managing overall portfolio volatility.
The fund’s performance remains consistent across different timeframes. Beyond the six-month figure, it has also led in the three-month category with a 2.4% gain. Over a longer three-year period, the fund has demonstrated stability, posting a compound annual growth rate (CAGR) of approximately 9.5%. This long-term trend has allowed the fund to consistently outperform its designated benchmark.
When comparing performance within the sector, peers like the Bandhan Income Plus Arbitrage Active FOF and HDFC Income Plus Arbitrage Active FOF have also shown competitive returns, trailing closely at 3.5% and 3.3% respectively. While ICICI Prudential’s fund is a significant player with assets under management (AUM) of approximately ₹3,040 crore, it operates in a landscape where larger players exist. For instance, the Kotak Income Plus Arbitrage Omni FOF holds a larger corpus of over ₹7,729 crore, highlighting the variation in fund sizes within this segment.
Investors looking at these funds should understand the mechanics of fund-of-funds (FOFs). These funds invest in other underlying mutual fund schemes rather than directly in stocks or bonds. This structure provides diversification but also means investors are effectively paying expenses at two levels—the FOF level and the underlying schemes.
Risk management is a critical component for investors to monitor. This fund carries a moderate risk rating. A specific cost factor for investors to track is the exit load. The fund charges a 1% exit load if units are redeemed within 12 months, which is designed to discourage short-term trading and protect the fund's stability. Additionally, like all market-linked products, past performance is not a guarantee of future results, and returns can fluctuate based on market conditions.
Recently, ICICI Prudential Mutual Fund announced an Income Distribution cum Capital Withdrawal (IDCW) record date of August 3, 2026, for specific schemes. Investors tracking these funds may want to review the scheme information document (SID) to understand the underlying asset allocation and expense ratios, as these factors significantly influence net returns over the long term.