What Is the Arudha Hybrid Long-Short Fund?
The Arudha Hybrid Long-Short Fund is a Specialised Investment Fund (SIF) that combines equity and debt exposures through a structured hybrid long-short investment strategy. The fund is designed for sophisticated investors, including high-net-worth individuals (HNIs), institutional investors, and family offices, with the objective of delivering optimal risk-adjusted returns while maintaining a strong focus on risk management and tax efficiency.
Under the SIF framework, the strategy is structured as an interval investment fund. Subscriptions and redemptions are permitted at predefined intervals, allowing the fund to balance investor liquidity requirements with efficient portfolio execution.
Key Features & Investment Strategy
1. Hybrid Long-Short Approach
The fund combines both traditional and advanced investment strategies to balance stability with return potential:
- Debt & Money Market Instruments: Up to 65% of the portfolio may be allocated to short- to medium-term debt and money market securities, offering stability and accrual-based income.
- Equity with Market-Neutral Exposure: A minimum of 35% of the strategy is invested in fully hedged equity positions. This market-neutral approach seeks to capture pricing inefficiencies and arbitrage opportunities rather than relying on directional market movements.
2. Optional Limited Derivative Exposure
The strategy may also include unhedged derivative exposure of up to 25%, providing additional flexibility to capture returns from pricing spreads and strategic short positions, as permitted under the SIF regulatory framework.
Why This Strategy Matters
Risk-Managed Returns
The hybrid long-short approach is designed to achieve returns with a strong emphasis on risk management by:
- Reducing dependence on overall market direction
- Generating potential income through debt accruals
- Capturing return opportunities through equity arbitrage and fully hedged equity exposures
At the same time, the strategy seeks to maintain strict risk discipline. The allocation to debt instruments and market-neutral equity positions can help smooth portfolio volatility, particularly during periods of market uncertainty.
Tax Efficiency
SIFs, including the Arudha Hybrid Long-Short Fund, are structured to provide post-tax efficiency benefits, especially relevant for HNIs and institutional investors focused on maximizing after-tax returns.NFO Details: January 9–22, 2026
- Launch Date: January 9, 2026
- Closing Date: January 22, 2026
- Minimum Investment: ₹10 lakh (typical for SIF strategies)
- Listing: Units will be listed on both the NSE and BSE after allotment, enhancing liquidity for investors
This limited subscription window provides eligible investors with an opportunity to participate in the fund at its initial offer price before units begin trading in the secondary market.
Who Is This Fund For?
The Arudha Hybrid Long-Short Fund is designed for investors seeking structured, risk-managed investment opportunities within the SIF framework. It is best suited for:
- High-net-worth individuals (HNIs)
- Institutional investors
- Family offices
- Investors looking for disciplined, risk-managed strategies
- Investors seeking diversified exposure across both debt and equity using advanced investment techniques
As Specialised Investment Funds are relatively nascent and require a higher minimum investment threshold, they are primarily intended for experienced investors rather than the general retail segment.