Assessing SIF Performance: Navigating Market Cycles for Alpha Generation
Sophisticated investors are scrutinizing Specialised Investment Funds (SIFs) to understand their performance across market cycles. These flexible vehicles, structured as AIFs, offer managers strategic freedom for capital preservation and alpha generation.
Leveraging Interest Rate Futures for Portfolio Protection
Interest rate futures allow SIF managers to hedge or speculate on rate movements without buying bonds directly. Long futures profit when rates fall; short futures hedge when rates rise. SEBI permits unhedged short exposure in Debt Long-Short and Sectoral Debt Long-Short funds.
Put Options (Long & Short)
Put options grant the buyer the right to sell an underlying asset at a strike price, while the seller incurs the obligation to buy. This guide delves into long and short put options, explaining their distinct mechanics, profit/loss profiles, and strategic application by SIF managers. Discover how these derivatives are used for hedging against
Call Options (Long & Short)
A call option grants the buyer the right, but not the obligation, to purchase an asset at a set price, while the seller assumes the obligation. Learn how SIF managers utilize long and short call options for capital-efficient bullish views, income generation, and risk management. Understand the profit/loss dynamics and SEBI's exposure calculation
Sector Rotation Long-Short Fund
Explore the unique Sector Rotation Long-Short Fund strategy, which concentrates investments in up to four key sectors and utilizes sector-level short positions to capitalize on economic cycles.
Long-Short Strategies: Playing both sides
For decades, Indian investing was a one-way game: buy, hold, and hope the market climbs. SEBI’s SIF framework changes that by bringing long-short strategies to a ₹10 lakh entry point. By running a 25% short book alongside traditional long positions, these funds can hedge risk and generate returns even when the market falls or goes sideways.