Edelweiss Mutual Fund has introduced the Altiva Hybrid Long-Short Fund, a new investment strategy under its Specialised Investment Fund (SIF) platform. The fund’s New Fund Offer (NFO) is open for subscription from October 1 to October 15. This interval investment strategy combines multiple approaches to generate consistent, income-oriented returns with low volatility. The fund’s core allocation focuses on equity arbitrage and high-quality fixed income, while also exploring selective opportunities in special situations such as IPOs, buybacks, mergers, and pair trades. Additionally, it uses low-risk derivative strategies like covered calls and straddles to enhance returns.
The fund’s multi-strategy approach aims to deliver smoother outcomes regardless of market direction, providing an “all-weather” solution for investors. One of the key benefits of the fund is its tax-efficient structure, with long-term capital gains (LTCG) above a 24-month holding period taxed at 12.5%, plus applicable surcharge and cess. This rate is more attractive than typical Category III AIFs, making post-tax returns potentially higher for investors.
The minimum investment required for the fund is ₹10 lakh, and investors can subscribe through lump sum, SIP, STP, or SWP options. Redemption is allowed twice a week, on Mondays and Wednesdays, while subscription is allowed daily. According to Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, the fund is designed to provide resilience and growth across market cycles by combining disciplined investing, diversification, and selective strategies in equities and derivatives.
The fund’s objective is to provide consistent returns with low volatility, making it an attractive option for investors looking for a stable investment strategy. The fund’s tax-efficient structure and flexible subscription and redemption options also make it an appealing choice for investors. Overall, the Edelweiss Altiva Hybrid Long-Short Fund offers a unique investment opportunity for those looking for a diversified and resilient investment strategy. With its multi-strategy approach and tax-efficient structure, the fund is well-positioned to provide investors with consistent returns and growth across market cycles.