Edelweiss Mutual Fund has successfully completed the first subscription of its Altiva Hybrid Long-Short Specialised Investment Fund (SIF), raising approximately ₹320 crore from both individual and corporate investors. This unique interval fund combines a core allocation to fixed income, equity arbitrage, and long/short equity strategies, with selective opportunities in special situations such as IPOs, buybacks, and mergers. The fund aims to provide consistent, income-oriented returns with relatively low volatility over the medium term.
The Altiva Hybrid Long-Short Fund offers daily subscriptions and allows redemptions twice a week, with a minimum investment requirement of ₹10 lakh. As it falls under the SIF framework, long-term capital gains exceeding 24 months are taxed at 12.5%, which can enhance post-tax returns compared to Category III Alternative Investment Funds. However, investors should be aware that investments in SIFs carry higher risks, including potential capital loss, liquidity risk, and market volatility.
Edelweiss Mutual Fund, part of Edelweiss Financial Services, offers a wide range of investment solutions across equities, hybrid, fixed income, and Specialised Investment Funds. The company has a large customer base of over one crore and manages assets worth nearly ₹2.2 lakh crore. With the launch of the Altiva Hybrid Long-Short Fund, Edelweiss Mutual Fund aims to provide investors with a unique investment opportunity that can help them achieve their financial goals.
It is essential for investors to review all strategy-related documents and understand the risks associated with investing in SIFs before making any investment decisions. The fund’s ability to provide consistent returns with relatively low volatility makes it an attractive option for investors seeking income-oriented returns. Overall, the successful completion of the first subscription of the Altiva Hybrid Long-Short Fund is a positive development for Edelweiss Mutual Fund and its investors, and it will be interesting to see how the fund performs in the future.