June 13, 2025

FoF cost structure

Funds

Here’s what many investors miss

According to DSP Mutual Fund, within the FoF space, three types have stood out in terms of investor preference: Income plus Arbitrage FoF: This FoF invests in a mix of arbitrage and debt funds, keeping debt exposure below 65%. Thanks to this structure, it qualifies for equity-like taxation, where long-term capital gains after two years are taxed at just 12.5% (plus surcharge

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