Quant MF launches Long-Short SIF funds, stays bullish on large caps, key sectors
Quant Mutual Fund, in its monthly release, announced two new schemes under its Quant Systematic Investment Framework (QSIF) platform — the QSIF Equity Long-Short Fund and the QSIF Hybrid Long-Short Fund — designed to meet the rising demand among investors for risk-managed investment solutions.
The QSIF Equity Long-Short Fund will open for continuous sale and repurchase on October 8, while the QSIF Hybrid Long-Short Fund will close for subscription on October 9. Both funds will employ long-short strategies, using derivatives within SEBI’s prescribed regulatory limits, to capture opportunities on the upside and downside while reducing exposure to market-wide risk.
The equity scheme adopts a flexi-cap approach that is market-cap agnostic and makes extensive use of derivative strategies to enhance returns. The hybrid version aims for low-risk predictable performance through equity arbitrage, accruals from quality fixed income securities, and capital appreciation from selective long-short exposures.
“These funds provide investors with hedging tools and systematic risk management, which the broader ecosystem has yet to fully adopt,” the fund house said. “Our long-short strategies aim to buffer portfolios against sudden downturns while keeping participation intact in growth opportunities.”
Portfolio and sector strategy
Beyond its new launches, Quant Mutual Fund noted that its portfolio remains tilted towards large-cap stocks, with selective increases in mid- and small-cap exposure across equity and hybrid schemes.
The fund house also disclosed recent hikes in allocation to NBFCs and public sector banks, while maintaining a constructive stance on infrastructure, hotels & hospitality, pharmaceuticals, consumption, and telecom.
Macro commentary
On global developments, the fund house said the recent hike in US visa fees by the Trump administration would weigh on Indian tech workers in the short run, with India accounting for 71% of H-1B visas last year. Over the long term, however, the move could encourage more offshoring and domestic tech opportunities.
Quant MF is also optimistic about GST 2.0, which it expects to boost consumption and improve business compliance, although it acknowledged potential revenue challenges for states. The IT sector, it added, is currently trading in the “neglected zone” and has been allocated tactically.
On commodities, the fund house highlighted that India’s appetite for precious metals remains strong, with gold and silver imports nearly doubling despite record prices, as jewellers and banks stocked up ahead of the festive season. While signalling robust consumer demand, this could strain the trade balance.
Market outlook
“At Quant, we remain constructive on Indian equities and believe India is a strong and secular growth story. The coming decade belongs indeed to India,” the release said, adding that 96% of its equity schemes are currently invested.