Mumbai: HDFC Mutual Fund has entered the Specialised Investment Fund (SIF) segment with the launch of its first investment strategy, the H-SIF Hybrid Long-Short Fund, as asset management companies increasingly explore investment products beyond traditional mutual fund offerings.
The New Fund Offer (NFO) opened on November 13 and will close on November 27, 2026.
The fund is an interval investment strategy that will invest in equity and debt securities, including limited short exposure through derivatives. It is positioned as an Arbitrage+ strategy, aiming to generate relatively steady returns without depending entirely on the direction of the equity market.
The launch comes at a time when Indian equity markets have witnessed volatility through 2026, with sharp corrections in March and September. According to data cited by the company from the Association of Mutual Funds in India (AMFI), assets under management in the SIF category increased from around ₹2,010 crore in October 2025 to ₹38,287 crore in September 2026.
Hybrid long-short strategies have attracted the largest share of investments in this category.
How will the H-SIF Hybrid Long-Short Fund work?
The fund plans to build its core portfolio around high-quality debt papers, arbitrage opportunities and Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Around this core portfolio, it will use derivatives primarily for risk management through hedging positions, earning option premiums and taking limited short positions.
The fund can take short positions of up to 25% of its net assets. It will also selectively participate in corporate events such as IPOs, buybacks, open offers and mergers to identify additional return opportunities.
The strategy will also use interest income, arbitrage spreads, option premiums and tactical allocation to special situations. It is designed for flat, mildly rising and volatile markets, with a preferred investment horizon of more than 18 months.
₹10 lakh minimum investment
The minimum investment in the strategy is ₹10 lakh across SIF strategies at the PAN level. However, accredited investors can invest a minimum of ₹10,000, subject to applicable conditions.
Subscriptions will be available daily, while redemptions will be permitted twice a week, on Mondays and Wednesdays.
An exit load of 0.5% will apply if units are redeemed or switched out within 90 days of allotment. No exit load will apply thereafter.
The product carries Risk Band Level 2, according to the risk classification displayed in the fund's product document.
Experienced fund management team
The strategy will be managed by Paul S Param preet (Equity), Ihab Dalwai (Equity), Anil Bamboli (Debt) and Gopal Agrawal (Overseas Investments), bringing together experience across equity markets, derivatives, fixed income and overseas investments.
Commenting on the launch, Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company, said the SIF platform would provide investors access to more sophisticated investment strategies within a transparent and regulated framework.
He added that the company's approach would continue to be guided by its focus on risk management, research and investment discipline.
Paul S Param preet, Fund Manager – Equities, said market volatility can create opportunities for strategies designed to use changing market conditions. He added that the fund aims to build a portfolio that does not rely on a single source of returns, while using derivatives to actively manage risk.
Investments in Specialised Investment Funds involve relatively higher risks, including potential loss of capital, liquidity risk and market volatility.
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