Overview
- SEBI’s Specialised Investment Fund framework, effective April 1, grants mutual funds the ability to pursue long-short strategies within regulated open-ended, closed-ended or interval structures
- Quant SIF, launched on August 1 with SEBI approval, requires a minimum Rs 10 lakh investment and blends long positions on stocks expected to rise with derivatives-based shorts
- The fund aims to generate returns in varied market conditions by hedging downside risk and capturing upside through active equity positions
- At least ten other domestic and foreign AMCs—including ICICI Prudential, SBI Mutual Fund and HDFC AMC—are planning similar long-short SIF offerings
- Managers and advisors are emphasizing transparent strategy disclosures, ongoing performance tracking and investor education on managing dual-sided risk