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 seeking short to medium-term optimal returns, with a minimum investment of ₹10,00,000. It targets individuals looking for a balanced profile of relative stability and low volatility, generated through an interval investment strategy primarily in equity and debt securities, complemented by limited short exposure in equity and debt derivatives.
This fund is not suitable for investors seeking high pure equity exposure or very aggressive growth. It may also not be ideal for those with a very short investment horizon or a very low-risk appetite, as it involves inherent market risks and potential capital loss.
In bull markets, the fund's long equity positions are expected to participate in market upside. However, its limited short exposure through derivatives would act as a partial hedge, potentially moderating overall returns compared to a pure long-only equity fund, in exchange for lower volatility.
During bear markets, the fund's short positions through derivatives are designed to provide a cushion against falling equity prices, helping to mitigate losses from its long equity holdings. The substantial debt component further contributes to stability, aiming to deliver relatively more resilient performance compared to pure equity strategies.
In sideways or range-bound markets, the fund's diversified approach, combining equity and debt with an active long-short derivative strategy, allows it to seek optimal returns. The strategy aims to capture opportunities across both asset classes and potentially generate alpha even when market direction is unclear, contributing to its goal of low volatility.
The Arudha Hybrid Long-Short Fund employs an interval investment strategy that blends investments in long equity and debt securities with a limited, active short equity exposure using derivatives. Approximately 36.55% of the portfolio is in long equities, hedged by around 36.90% in short equity futures. The substantial debt portion, comprising corporate bonds, certificates of deposit, and treasury bills (approx. 59.37%), provides a stable base. This combination aims to deliver superior risk-adjusted returns by balancing equity participation with downside protection and income generation from debt.
For investors familiar with mutual funds, this SIF is most comparable to a Conservative Hybrid Fund or an Equity Savings Fund. These categories also combine equity, debt, and arbitrage/hedging strategies to deliver relatively stable returns with lower volatility than pure equity funds.
This fund is best suited as a satellite allocation within a diversified portfolio, rather data than a core equity replacement. It serves as an alternative sleeve for investors seeking equity participation with a focus on risk-adjusted returns and lower volatility, by incorporating active hedging strategies and a significant debt component.
Taxed at applicable slab rate.
Taxed at 12.5% without indexation.
Taxed at applicable slab rate as ordinary income.
Based on fund category (Hybrid). Consult a tax advisor for your specific situation.