Edelweiss Mutual Fund has launched a new investment strategy, the Altiva Hybrid Long-Short Fund, under its Specialised Investment Fund (SIF) platform. The fund aims to deliver consistent, income-oriented returns through a combination of equity arbitrage, high-quality fixed income, and selective opportunities in special situations in equity markets. The new fund offer (NFO) will be open for subscription from October 1 to October 15.
The Altiva Hybrid Long-Short Fund is an interval investment strategy that combines multiple approaches to generate smoother outcomes regardless of the overall market direction. The fund will allocate 25-75% in equity and equity-related instruments, 25-75% in debt and money market instruments, and up to 25% in short exposure through unhedged derivative positions. The investment strategy will also seek to capitalize on special situations such as IPOs, buybacks, and mergers.
Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, stated that the fund is designed to adapt across market cycles, aiming to generate stable, income-oriented, and tax-efficient returns. The fund is positioned as an interval investment strategy with daily subscriptions and redemptions available twice a week. The minimum application amount is Rs 10 lakh, and the fund allows for taxation efficiency, with long-term capital gains taxed at 12.5% beyond a 24-month holding period.
The Altiva Hybrid Long-Short Fund is managed by a team of experienced fund managers, including Bhavesh Jain, Bharat Lahoti, Dhawal Dalal, and Amit Vora. The fund’s performance will be benchmarked against the NIFTY 50 Hybrid Composite Debt 15:85 Index. The primary objective of the investment strategy is to generate capital appreciation through equity and equity-related instruments and income through arbitrage, derivatives strategies, special situations, and fixed income investments.
The launch of the Altiva Hybrid Long-Short Fund is part of Edelweiss Mutual Fund’s efforts to create innovative investment solutions that address investor needs and add value to their portfolios. The fund house believes that the SIF category has tremendous potential and will leverage its investment team’s experience to offer differentiated investment solutions. With the launch of Altiva SIF, Edelweiss AMC aims to offer a range of investment solutions across equity, hybrid, and fixed income categories, catering to evolving investor needs.