Arudha SIF launches maiden hybrid long-short strategy targeting risk-managed, tax-efficient returns

According to the AMC, the name “Arudha,” meaning ascent and progress, reflects the firm’s intent to support investors as they transition towards more sophisticated wealth creation strategies.

• Bandhan Mutual Fund launches Arudha Hybrid Long-Short Fund under SIF category
• NFO opens January 9 and closes January 22 for sophisticated investors
• Fund targets risk-adjusted returns through debt, money market, and market-neutral equity.

Did our AI summary help?

Arudha Specialized Investment Funds (SIF), by Bandhan Mutual Fund, on Thursday announced the launch of its maiden SIF strategy—Arudha Hybrid Long-Short Fund, marking the fund house’s entry into the Specialized Investment Fund space with a focus on risk management and post-tax efficiency. The NFO opens on 9th of January and will closed on January 22.

The interval investment strategy, according to a note from the AMC is designed to cater to sophisticated investors such as high net-worth individuals (HNIs), institutional investors and family offices. It aims to deliver optimal risk-adjusted returns through a diversified allocation across debt, money market instruments and fully hedged, market-neutral equity positions.

As per the strategy framework, the fund will allocate up to 65% of its portfolio to short- to medium-term debt and money market instruments, while maintaining a minimum 35% allocation to fully hedged equity positions. The strategy may also take short unhedged derivatives exposure of up to 25%, in line with the limits defined in the Investment Strategy Information Document (ISID).

Commenting on the launch, Vishal Kapoor, CEO of Bandhan AMC Limited, said the fund has been structured to offer a combination of accrual income and arbitrage opportunities within a single product. On the debt side, the strategy will follow active duration management in the range of one to four years. Exposure to AA+/AA-rated instruments will be capped at 10% of the overall portfolio, with the remaining allocation invested in AAA-rated or sovereign securities. This approach is intended to provide relative stability, liquidity and accrual-based income.

The equity component of the fund will remain market-neutral, focusing on exploiting pricing inefficiencies and spreads rather than taking directional market exposure. According to the fund house, this arbitrage-based allocation is expected to add relatively low-risk accruals to the overall portfolio.

According to the AMC, the name “Arudha,” meaning ascent and progress, reflects the firm’s intent to support investors as they transition towards more sophisticated wealth creation strategies.

SIFs are a new class of investment products introduced by SEBI to bridge the gap between traditional mutual funds and portfolio management services. These funds are open to investors committing a minimum investment of Rs 10 lakh and offer fund managers greater flexibility in portfolio construction, while retaining regulatory oversight and investor protection.