The new fund offer (NFO) opened on April 27 and will close on May 11, with a minimum investment requirement of ₹10 lakh, positioning it for high-net-worth and sophisticated investors.
The scheme is structured as an open-ended equity-oriented fund under the SIF framework, which allows greater flexibility in portfolio construction, including limited short exposure through derivatives.
Focus on sector rotation strategy
The fund will follow a sector rotation approach, allocating capital across a select set of sectors based on evolving market cycles. It can take long positions in sectors expected to outperform and short positions in those likely to underperform.
The strategy typically focuses on a concentrated portfolio of sectors—often up to four at a time—to capture cyclical opportunities and improve return potential.
Investment approach and structure
The scheme aims to generate long-term capital appreciation by investing in equity and equity-related instruments while using derivatives selectively for short exposure.
Such long-short strategies seek to benefit from both rising and falling market conditions, while also attempting to manage downside risks more actively compared to traditional long-only funds.
The fund will benchmark its performance against the Nifty 500 Total Return Index and carries a ‘very high’ risk classification.
Key investment details
The offer price for the NFO is set at ₹10 per unit. Investors can participate through a lump sum investment, with the minimum ticket size set at ₹10 lakh.
The scheme will be managed by a team including Sandeep Tandon, along with other fund managers within the asset management company.
Part of expanding SIF category
The launch comes amid a broader expansion of specialised investment funds in India’s mutual fund industry, where asset managers are introducing differentiated strategies such as equity long-short, hybrid long-short, and sector-focused approaches.
SIFs are designed to offer more flexibility than traditional mutual funds, but they also involve higher complexity and risk, making them more suitable for informed investors.
