1 week ago
Hybrid Long-Short SIFs Outperform Nifty 500 Amid Muted Markets
Hybrid long-short SIFs are investment funds that try to earn money in different market conditions.
They buy some shares but can also bet against other shares using derivatives.
They also keep money in debt investments, which can provide steadier income.
Over six months, these funds earned an average of 4.8%, while the Nifty 500 gained 0.1%.
Their strategies may help when markets are volatile or move sideways.
Rules require them to keep at least 25% in equity and 25% in debt.
They are meant for investors who can invest at least ₹10 lakh and accept higher risk.
Investors are advised to examine risk, performance consistency, fund managers and investment strategies before investing.
Hybrid long-short SIFs returned an average 4.8% over six months, compared with 0.1% for the Nifty 500.
These funds represented 66% of the ₹23,177 crore assets under management held by SIFs at July-end.
The strategies combine equity and debt allocations with short positions, derivatives, options and market-neutral trades.
Each fund must hold at least 25% in equity and 25% in debt, while unhedged short positions cannot exceed 25% of net assets.
The funds are positioned as satellite investments for investors with at least ₹10 lakh in surplus and moderate-to-high risk tolerance.
- Who
- Hybrid long-short specialised investment funds (SIFs), fund managers and investors with at least ₹10 lakh in investible surplus.
- What
- The funds generated average six-month returns of 4.8%, outperforming the Nifty 500’s 0.1% return.
- Where
- The article discusses SIFs in the Indian investment market, as indicated by references to the Nifty 500 and rupee-denominated assets.
- When
- The performance comparison covers six months; assets under management were measured at July-end. The article says SIFs launched as a new category in October 2026.
- Why
- They use equity selection, debt carry, short positions, derivatives, options and market-neutral strategies to seek returns and manage market risk.
Key facts
- Average six-month SIF return
- 4.8% for hybrid long-short SIFs
- Nifty 500 return
- 0.1% over the same six-month period
- Total SIF assets under management
- ₹23,177 crore as of July-end
- Hybrid long-short share of SIF assets
- 66%
- Minimum equity allocation
- 25%
- Minimum debt allocation
- 25%
- Maximum unhedged short exposure
- 25% of net assets
- Suggested investor profile
- Investors with ₹10 lakh or more in investible surplus and a moderate-to-high risk appetite
Quotes
Sonam Srivastava
Founder of Wright Research PMS
“In a market that has been stuck in a range with plenty of volatility, covered calls are actually generating real income, and the volatility is keeping arbitrage spreads alive.”
financialexpress.com
“It is why volatility, beta, maximum drawdown and consistency matter more than headline numbers here.”
financialexpress.com
Sources
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