Hybrid Long-Short SIF Drawdown Analysis: How Quickly Did India's SIFs Recover?

As India's Specialized Investment Fund (SIF) ecosystem continues to expand, investors are increasingly looking beyond headline returns.

One of the most useful ways to understand a fund's risk behaviour is through drawdown analysis.

Instead of asking only "How much did the SIF return?", drawdown analysis asks:

• How much did the fund fall from its previous peak?
• When did the maximum drawdown occur?
• How long did it take to recover?
• How many trading/NAV days were required to regain the previous peak?

This analysis compares 10 Hybrid Long-Short SIFs across these parameters.

Data note: The figures below are based on the dataset provided for this analysis. Returns and risk characteristics can change as NAVs evolve. This is an analytical comparison and not an investment recommendation.

What Is Maximum Drawdown?

Maximum drawdown measures the largest decline in a fund's NAV from a previous peak to the subsequent trough during a specified period.

For example, if a fund's NAV rises to ₹110 and subsequently falls to ₹100 before recovering, the drawdown is approximately -9.09% from the peak.

A smaller maximum drawdown generally indicates that the fund experienced a smaller peak-to-trough decline during the period being analysed.

However, drawdown should never be viewed in isolation. The recovery period is equally important.

Hybrid Long-Short SIF Drawdown Comparison

The dataset covers the following 10 Hybrid Long-Short SIFs:

Which Hybrid SIFs Had the Lowest Maximum Drawdown?

Based on the supplied data, RedHex SIF recorded the smallest maximum drawdown among the 10 funds at -0.19%.

It was followed by:

1. Arudha SIF --0.24%
2. Infinity SIF --0.26%
3. Apex SIF --0.55%
4. Platinum SIF --0.72%

These figures indicate relatively small peak-to-trough declines during the period analysed.

However, there is an important caveat: several of these funds have relatively short operating histories. For example, Infinity SIF began on 6 July 2026, while RedHex SIF began on 19 June 2026.

Therefore, a lower observed drawdown over a shorter history should not automatically be interpreted as lower long-term risk.

Which Hybrid SIF Had the Largest Drawdown?

Among the funds in this dataset, iSIF recorded the largest maximum drawdown at -8.95%.

The next largest was:

• Titanium SIF: -7.47%
• qSIF: -3.26%
• Magnum SIF: -2.67%
• Altiva SIF: -2.04%

This illustrates why looking at only returns can provide an incomplete picture of an investment strategy.

Two funds may generate attractive returns but experience very different levels of interim volatility and drawdown.

Recovery Time: An Important SIF Risk Metric

Maximum drawdown tells us how far a fund fell.

Recovery time tells us how long it took to get back to its previous peak.

For investors evaluating Hybrid Long-Short SIFs, this can be an important additional metric because two funds with similar drawdowns can have very different recovery experiences.

Fastest Recovery

According to the supplied dataset:

Apex SIF and Platinum SIF recovered their respective drawdowns in 5 calendar days, requiring just 3 NAV/trading days.

They were followed by:

• Infinity -6 days / 4 NAV days
• Arudha -7 days / 4 NAV days
• RedHex -13 days / 9 NAV days
• Altiva -16 days / 10 NAV days
• qSIF -17 days / 11 NAV days

Longest Recovery Periods

At the other end of the spectrum, Titanium SIF took 80 days to recover from its maximum drawdown, requiring 54 NAV/trading days.

iSIF took 79 days, with 53 NAV/trading days required for recovery.

Magnum SIF recorded a recovery period of 38 days, equivalent to 25 NAV/trading days.

This highlights an important point:

The size of a drawdown and the time required to recover from it are two different risk dimensions.

A fund can experience a relatively moderate drawdown but take considerable time to recover, while another fund may experience a larger decline but recover faster.

Drawdown vs Recovery: The Bigger Picture

Looking at both metrics together provides a more complete view.

Lower Drawdown + Faster Recovery

The dataset shows particularly low drawdowns and relatively quick recovery periods for:

RedHex, Arudha, Infinity, Apex and Platinum.

However, their shorter histories mean these observations should be interpreted cautiously.

Higher Drawdown + Longer Recovery

iSIF and Titanium stand out for both relatively large maximum drawdowns and extended recovery periods.

This makes them particularly interesting from a risk-behaviour analysis perspective.

Established SIFs With More History

Funds such as Altiva, Magnum and qSIF have inception dates in October 2025 and therefore have a comparatively longer history within this dataset.

That additional history can make their drawdown observations more informative than very recently launched SIFs, although even these histories remain relatively short compared with traditional mutual fund categories.

Why Recovery Days Matter for SIF Investors

Suppose two funds both experience a 5% decline.

Fund A recovers in one week.

Fund B takes six months.

The headline drawdown is identical, but the investor experience is very different.

This is why SIF analysis should ideally consider multiple dimensions:

Return + Maximum Drawdown + Recovery Time + Consistency + Strategy + AUM + Fund Age

rather than relying on a single performance number.

How Hybrid Long-Short SIFs Differ From Traditional Investments

Hybrid Long-Short SIF strategies can use a combination of equity, debt and derivative exposures, with the ability to take both long and limited short exposure depending on the specific strategy and regulatory framework.

This flexibility can create a different return and risk profile compared with conventional long-only equity strategies.

For investors, this makes metrics such as maximum drawdown and recovery time particularly useful when evaluating how a strategy behaves during different market conditions.

Important Limitation: SIFs Are Still a Young Category

The SIF industry in India is relatively new.

Many SIF strategies have been operational for only a few months, while some funds in this comparison have been around for less than three months.

Therefore, it would be premature to use this data alone to determine:

• Long-term risk
• Long-term return potential
• Consistency across market cycles
• Manager skill across bull and bear markets
• Future drawdown behaviour

A longer track record across different market environments will provide a much stronger basis for comparison.

What Should Investors Look at Beyond Drawdown?

If you're comparing SIF funds in India, maximum drawdown is only one part of the analysis.

A comprehensive SIF comparison should include:

1. Performance

Look at 1-month, 3-month, 6-month and since-inception performance where available.

2. Maximum Drawdown

Understand the largest peak-to-trough decline.

3. Recovery Time

Measure how quickly the fund recovered its previous high.

4. Strategy

Understand whether the SIF follows an equity, hybrid or another specialized investment strategy.

5. Fund Age

A six-month track record and a five-year track record should not be interpreted in the same way.

6. AUM

AUM provides useful context about the scale of the strategy, although it should not be treated as a standalone indicator of quality.

7. Risk Profile

Investors should consider the fund's stated risk band, portfolio construction and use of derivatives.

Key Takeaways From the Hybrid Long-Short SIF Drawdown Analysis

The data provides several interesting observations:

RedHex SIF recorded the lowest maximum drawdown at -0.19%.

Arudha SIF and Infinity SIF followed with maximum drawdowns of -0.24% and -0.26%, respectively.

Apex SIF and Platinum SIF recorded the fastest recovery in the dataset at 5 calendar days and 3 NAV/trading days.

iSIF recorded the highest maximum drawdown at -8.95%.

Titanium SIF recorded the longest recovery period at 80 calendar days and 54 NAV/trading days.

At the same time, the relatively short history of several SIFs means these numbers should be viewed as early-stage observations rather than long-term conclusions.

Final Word

The SIF ecosystem is developing rapidly, and investors now have access to strategies that go beyond traditional mutual fund structures.

As more SIFs build longer track records, metrics such as maximum drawdown, recovery time, rolling returns, volatility and consistency will become increasingly valuable for comparing strategies.

For now, the key lesson is simple:

Don't look at returns alone. Understand how a SIF behaves when markets move against it -and how quickly it recovers.

That is where drawdown analysis can add another layer of insight to SIF investing.