Edelweiss Mutual Fund has successfully raised ₹320 crore in the first subscription round of its Altiva Hybrid Long-Short Specialised Investment Fund (SIF), marking a strong debut for its new alternative investment offering. The fund drew significant interest from both individual investors and corporate treasuries, reflecting rising appetite for hybrid and alternative investment vehicles in India’s wealth management space.
A Diversified, Multi-Asset Strategy
The Altiva Hybrid Long-Short SIF is designed to generate steady, income-oriented returns while managing market volatility through a multi-asset allocation strategy. The fund combines exposure to fixed income instruments, equity arbitrage positions, and long/short equity opportunities, while also allocating selectively to special situations such as IPOs, buybacks, mergers, and low-risk derivative strategies.
This balanced and flexible framework aims to deliver consistent risk-adjusted returns and capital protection over the medium term—making it suitable for investors seeking diversification beyond traditional debt or equity mutual funds.
Flexible Investment Terms and Tax Efficiency
The fund offers investors daily subscription options and allows redemptions twice a week—on Mondays and Wednesdays—offering higher liquidity compared to typical alternative investment structures. The minimum investment size is ₹10 lakh, catering to high-net-worth individuals and institutional investors.
Under the SIF framework, long-term capital gains (for holdings beyond 24 months) are taxed at 12.5%, making it more tax-efficient than Category III Alternative Investment Funds (AIFs). This structure aligns with Edelweiss’s broader strategy to offer flexible, performance-driven, and tax-optimized investment products within the alternative investment segment.
Investor Caution and Risk Outlook
Despite its hybrid and hedged structure, Edelweiss cautioned that SIF investments carry higher risk relative to traditional funds. These include market fluctuations, liquidity constraints, and potential capital loss in volatile conditions. Investors are advised to evaluate their risk profile and investment horizon carefully before participating.
The fund’s design and asset mix, however, underscore Edelweiss’s continued push toward innovation in alternative and hybrid fund offerings, catering to investors looking for non-traditional avenues of stable wealth creation amid uncertain market cycles.
Summary
Edelweiss Mutual Fund’s Altiva Hybrid Long-Short SIF raised ₹320 crore in its maiden subscription round, signaling strong demand for diversified, tax-efficient hybrid funds. The SIF combines fixed income, equity, arbitrage, and special-situation strategies to deliver stable, medium-term returns with reduced volatility. Daily subscriptions, twice-weekly redemptions, and a 12.5% long-term capital gains tax rate add to its investor appeal, though participants are urged to weigh associated risks carefully.
Disclaimer:
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