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 fund is suitable for investors seeking long-term capital appreciation from an open-ended equity investment strategy. It is designed for investors who are comfortable with higher risk (Risk band level 5) and wish to invest in equity and equity-related instruments, including derivatives for taking short positions, with a minimum investment of ₹10,00,000 and an investment horizon suited for generating long-term returns through structural, cyclical, and tactical opportunities.
This fund is not suitable for investors with a low-risk appetite or those seeking short-term capital preservation. Individuals with immediate liquidity needs or an investment horizon shorter than 3-5 years should avoid this fund due to its higher risk profile and exposure to market volatility through equity and derivatives.
In a bull market, the fund is expected to capture upside primarily through its significant long equity positions, which constitute a majority of the portfolio. While the short positions taken via derivatives may act as a partial hedge or dampen extreme volatility, the fund's net long exposure to equities is designed to benefit from rising market trends and generate capital appreciation.
During a bear market, the fund's short positions in equity derivatives are intended to provide downside protection and potentially generate positive returns, thereby cushioning the impact on the overall portfolio. However, the long equity book will likely face headwinds, resulting in a potentially lower downside capture compared to a pure long-only fund, but still subject to market risks.
In a sideways or range-bound market, the fund aims to generate returns through its tactical investing opportunities and active management of both long and short positions. The flexibility to take short positions through derivatives allows the fund to potentially profit from both upward and downward movements within a range, offering an advantage over traditional long-only strategies that struggle in such markets.
The DynaSIF Equity Long-Short Fund is an open-ended strategy that combines a core portfolio of long equity holdings with tactical short positions taken through equity derivatives. Approximately 72% of the portfolio is invested in a diversified basket of listed equities, aiming for long-term growth. The remaining allocation, primarily to money market instruments and cash, provides liquidity and collateral for derivative trades. This dual approach allows the fund to generate capital appreciation from rising equities while using short positions to hedge risks and potentially profit from downward-trending stocks or indices.
The fund's blend of long equity positions, coupled with dynamic allocation to debt/money market instruments and the use of derivatives for hedging and shorting, makes it comparable to a Balanced Advantage Fund or Equity Savings Fund in the mutual fund universe, offering equity participation with managed risk.
This fund is suitable as a satellite allocation or an alternative sleeve within a diversified portfolio, rather than a core holding. It can serve as a return enhancer for investors seeking equity-like growth with potentially lower volatility, leveraging its long-short strategy to navigate various market conditions and provide differentiated returns.
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.
