HDFC Income Plus Arbitrage Active FOF(IDCW Reinv)

Ticker: mf15669
Decent 68/100

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Business Overview

HDFC Income Plus Arbitrage Active FOF is a dynamic fund of funds designed for investors seeking stable returns through a balanced approach to equity and debt. Ideal for conservative investors, this fund employs arbitrage strategies to capitalize on market inefficiencies while maintaining a focus on capital preservation. It offers a blend of safety and growth potential, making it suitable for long-term wealth accumulation.

  • Designed for conservative investors
  • Focuses on capital preservation
  • Utilizes arbitrage strategies for stable returns
  • Invests in a mix of equity and debt
  • Reinvests dividends for compounded growth
  • Managed by experienced professionals

Investment Thesis

HDFC Income Plus Arbitrage Active FOF stands out due to its strong promoter credibility and robust digital service growth potential. With attractive valuations compared to peers, it presents a compelling opportunity for investors seeking stability and growth in a dynamic market.

  • Backed by HDFC's strong reputation and extensive experience in financial services.
  • Capitalizes on the growing trend of digital financial services, enhancing accessibility and efficiency.
  • Offers attractive valuation metrics compared to similar funds, indicating potential for higher returns.
  • Focuses on arbitrage opportunities, providing a balanced risk-return profile.
  • Ideal for conservative investors looking for steady income with growth potential.

Opportunity vs Risk

Opportunities
  • Stable income generation
  • Low market volatility exposure
  • Diversification benefits
  • Potential for capital appreciation
Risks ⚠️
  • Interest rate fluctuations
  • Market downturn impacts
  • Limited growth potential
  • Regulatory changes

Peer Perspective

HDFC Income Plus Arbitrage Active FOF trades at a slight premium compared to peers like ICICI Prudential Arbitrage Fund and Axis Arbitrage Fund. A stable margin and consistent growth could trigger a positive rerating.
📊 Stock Investment Checklist (100 Points)
HDFC Income Plus Arbitrage Active FOF(IDCW Reinv) • Updated: 2025-10-01 02:55:37
  • 10
    Business
    High
    The fund operates in a stable sector with a clear investment model.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit growth is moderate.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are reasonable compared to peers.
  • 7
    Balance
    High
    Strong liquidity position, low debt levels.
  • 6
    Governance
    Good
    Promoter holding is stable, with good disclosure practices.
  • 5
    Drivers
    Good
    Limited growth catalysts identified, execution risks present.
  • 5
    Technicals
    Good
    Market sentiment is neutral, with moderate liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The fund shows decent potential for moderate returns with manageable risks, but growth drivers are limited.