Edelweiss Altiva Hybrid SIF opens Oct 1: Radhika Gupta lists 8 rules before you invest in this fund
Edelweiss Mutual Fund is launching the Altiva Hybrid Long-Short Fund, India’s first SIF under the hybrid long-short category, open for subscription from October 1 to 15. Ahead of its debut, Edelweiss MF CEO Radhika Gupta shared eight key insights to help investors understand how SIFs differ from traditional mutual funds — and when they make sense.
In a post on X Gupta addressed common investor queries around SIFs (Strategy Investment Funds), positioning them as solutions rather than asset classes. “Instead of asking how much to allocate, ask what the fund is solving for,” she wrote, explaining that SIFs like Altiva Hybrid Long-Short aim to provide tax-efficient income for investors looking to diversify beyond pure growth assets.
Unlike traditional mutual funds, SIFs allow for the use of derivatives beyond hedging, enabling strategies that lower market exposure and aim for better risk-adjusted returns. However, Gupta emphasized that SIFs do not permit leverage and have a 100% exposure cap, maintaining risk discipline.
Altiva Hybrid Long-Short is designed to deliver absolute returns with low volatility using a mix of debt, arbitrage, and low-risk strategies. It will benchmark against the Nifty 50 Hybrid Composite Debt 15:85 Index and be managed by Bhavesh Jain, Bharat Lahoti, Dhawal Dalal, and Amit Vora.
The fund will operate as an interval scheme with daily subscriptions and redemptions available on Mondays and Wednesdays. Minimum investment is ₹10 lakh, and investors can opt for lump sum, SIP, STP, or SWP routes. As per the SIF framework, long-term capital gains are taxed at 12.5% if held for more than 24 months.
Gupta advised investors to evaluate SIFs using metrics like rolling returns, standard deviation, net market exposure, and worst-case monthly drawdowns — rather than just headline returns.
Importantly, she noted that investing in SIFs requires a different mindset than buy-and-hold equity investing. “This is a new category that will evolve. Invest only if you understand it,” she wrote.
With Altiva Hybrid Long-Short, Edelweiss aims to bring structured flexibility and tax efficiency together — offering a new toolkit for those seeking steady, low-volatility income in a volatile market.