Quant Mutual Fund has announced the launch of India’s first SIF – QSIF Equity Long-Short Fund, an open-ended equity investment strategy that invests in listed equity and equity-related instruments, including limited short exposure through derivative instruments.

The new fund offer (NFO) is open for subscription and will close on October 1. The investment strategy will re-open for continuous sale and repurchase within five business days from the date of allotment of units under the NFO.

Also Read | Quant Mid Cap Fund exits Bharat Forge & 2 others, trims exposure in Ajanta Pharma in August

The scheme’s objective is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments while employing limited short exposure through derivatives to enhance returns and manage risk efficiently.

Performance will be benchmarked against the Nifty 500 Total Return Index and managed by Sandeep Tandon, Lokesh Garg, Sameer Kate, Ankit Pande, and Sanjeev Sharma.

The SIF will allocate:

• 65–100% in all-cap cash equity/equity arbitrage
• 0–35% in all-cap unhedged derivative strategies (long)
• 0–25% in all-cap unhedged derivative strategies (short)
• 0–100% in hedging
• 0–15% in margins (cash, T-bills, G-sec)

According to the fund house, this flexi-cap long-short strategy will benefit from an unconstrained, market-cap-agnostic approach with both long and short exposure via extensive derivative usage within SEBI’s prescribed regulatory limits.

The fund will offer two plans – direct and regular, both with growth and IDCW options. The exit load is 1% if redeemed or switched out on or before 15 days from the date of allotment of units.

The minimum application amount is Rs 10 lakh, in multiples of Re 1 thereafter. For SIP, the minimum amount is Rs 10,000, in multiples of Re 1.

The Equity Long-Short Investment Strategy is designed to achieve consistent capital appreciation across diverse market conditions. By blending long-term equity investments with tactical short exposures, the strategy aims to capture upside potential while mitigating downside risks. This dual approach leverages both fundamental and opportunistic market dynamics to deliver robust returns for investors seeking growth with prudent risk management.

Also Read | Flexi cap mutual funds’ AUM nears Rs 5 lakh crore in August. What’s driving the investor rush?

This SIF is suitable for investors seeking long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments, while using limited short exposure through derivatives to enhance returns and manage risk. The scheme falls on the higher-risk side of the risk spectrum.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)