SIFcase is a research and comparison platform. Information shown is for educational purposes only and should not be considered investment advice. Investments in securities markets are subject to market risks. Please read all official scheme documents carefully before investing. Past performance is not indicative of future results. SIFs require a minimum investment of ₹10 lakh.
This SIF is suitable for investors with a high-risk appetite seeking long-term capital appreciation from a diversified portfolio of equity and equity-related instruments, including derivative-based short exposure. It is appropriate for those who can commit a minimum investment of ₹10,00,000 and have an investment horizon long enough to ride out market volatility.
This SIF is not suitable for risk-averse investors, those with a short investment horizon, or individuals who require immediate liquidity from their investments. Investors with a low tolerance for market volatility or potential capital loss should avoid this fund.
In bull markets, the fund is expected to perform well primarily due to its significant long equity exposure, which aims to capture market upside. The limited short exposure might slightly temper overall gains compared to a pure long-only equity fund, but it would also provide some cushion during minor pullbacks.
In bear markets, the fund's limited short exposure through derivatives is designed to offer a degree of downside protection, potentially mitigating losses compared to a pure long-only equity portfolio. However, given the primary long equity allocation, significant market downturns may still result in capital depreciation, albeit possibly less severe.
In sideways or range-bound markets, the fund may seek to generate returns from both its long equity positions and tactical short exposures, potentially outperforming pure long-only strategies that struggle in such environments. The active management of derivative positions could allow for alpha generation even when broader markets are flat.
The Arudha SIF employs a long-short equity strategy, primarily building a diversified portfolio of listed equity and equity-related instruments. A portion of the portfolio is allocated to debt instruments and cash equivalents for liquidity and as collateral. The fund utilizes limited short exposure through equity derivative instruments, aiming to generate long-term capital appreciation while managing risk through active hedging strategies.
This SIF is comparable to a Hybrid Equity Savings Fund or a Balanced Advantage Fund in the mutual fund space, as it combines equity investments with derivatives for risk management and aims for relatively stable returns through its long-short strategy.
This fund fits into a diversified portfolio as a satellite allocation or an alternative sleeve for investors seeking equity participation with potentially lower volatility and smoother returns than a pure equity fund. It can serve as a return enhancer by diversifying away from traditional long-only equity strategies and providing exposure to a hedged approach.
Taxed at 20% as per equity taxation rules.
Taxed at 12.5% on gains exceeding ₹1.25 lakh per year.
Taxed at applicable slab rate as ordinary income.
Based on fund category (Equity). Consult a tax advisor for your specific situation.