Edelweiss launches India’s first Hybrid Long-Short SIF - Altiva

The Altiva SIF (Specialised Investment Fund) from Edelweiss Mutual Fund has recently launched India's first-ever Hybrid Long-Short Fund, which aims for low-volatility investments. The Altiva Hybrid Long-Short Fund is a differentiated investment strategy under its SIF platform. The NFO (New Fund Offer) will be open for subscription from October 1 and will close on October 15. 

The fund house stated in a release that this fund employs an interval investment strategy, aiming to generate consistent and profit-focused returns by primarily investing in equity instruments and high-quality fixed income.

The release further added that this approach includes targeted opportunities in specific situations within equity markets, such as IPOs (Initial Public Offerings), buybacks, open offers and mergers. It also incorporates strategies like pair trades and low-risk derivatives, such as covered calls and straddles. By combining these various strategies, the goal is to achieve more consistent results, irrespective of the overall market direction in the medium term.

Must Read: Best Mutual Funds to Invest in 2025: Low-Risk Options for High Return

Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, remarked, "We are proud to introduce India’s first Hybrid SIF with the launch of the Altiva Hybrid Long-Short Fund. This initiative shows our commitment to developing innovative investment approaches that serve investor needs while adding significant value to their portfolios. We believe that the SIF category holds high potential and we will use our investment team’s expertise, particularly in equity derivatives & special situations"

She also posted on a social media platform, saying, “India's first hybrid long-short SIF, Altiva SIF by @EdelweissMF, launches on October 1. It is a unique solution that delivers absolute returns with low volatility through a combination of debt, arb and low-risk strategies.”

The release by the fund house also said, " The Altiva Hybrid Long Short Fund is designed to adjust in every market condition, whether flat, bullish or bearish. The main goal of this mutual fund is to give stable, tax-efficient and income-oriented returns, while also taking advantage of selective opportunities in special situations and derivatives. At Edelweiss AMC, we understand that investors are looking for both flexibility and growth. This fund represents a significant step forward in achieving those objectives through discipline, diversification and innovation."

The Altiva Hybrid Long-Short Fund offers daily subscriptions and redemptions twice a week (Mondays and Wednesdays). The minimum application amount is Rs 10 lakh, and the available options are lump sum, SIP, STP, and SWP. Additionally, as it is under the SIF framework, it provides efficient tax planning, with long-term capital gains taxed at 12.5% beyond a 24-month holding period.

Also Read: Best SIP Plan for 20 Years: With Equity, Debt & Hybrid Funds

The benchmark against which the fund's performance is measured will be NIFTY 50 Hybrid Composite Debt 15:85 Index. This mutual fund will be managed by Bhavesh Jain, Bharat Lahoti, Dhawal Dalal and Amit Vora. The investment strategy aims to generate capital appreciation through equity and equity-related instruments and income through arbitrage, derivatives strategies, special situations and fixed-income investments.

The fund's asset allocation will be categorized as follows: 25-75% equity, 25-75% debt and money market instruments, 0-25% short exposure through unhedged derivative positions in equity and debt instruments, and 0-20% units issued by REITs and InvITs.

The investment strategy will focus on capitalising on special situations such as IPOs (Initial Public Offerings), FPOs (Follow-on Public Offerings), rights issues, buybacks, open offers, demergers, mergers, QIPs (Qualified Institutional Placements), delistings and index rebalancing events. These event-driven opportunities will be assessed tactically to generate short-term returns.

In May, the fund house announced the launch of Altiva SIF, a new brand identity for its Specialised Investment Funds (SIFs) business. Altiva SIF will provide distinct investment solutions across equity, hybrid and fixed-income categories to meet investors' evolving needs.

Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, said at the launch of Altiva SIF, "By launching Altiva SIF, Edelweiss AMC is making an early strategic entry into the promising and fast-evolving Specialised Investment Funds (SIFs) space. We believe that SIF represents the next evolution in investment solutions, a powerful bridge between traditional mutual funds and PMS/AIFs, offering the flexibility and innovation required to serve the investors of tomorrow”.

Related Blogs:

1. What is AMC SIP: How it Works?

2. How to Calculate Tax On Mutual Fund Redemption?