Sandeep Tandon-led Quant Mutual Fund, the first in India to launch a Systematic Investment Fund (SIF) product, intends to assert its presence in the market with more aggressive launches in the coming months. Already the first to launch a long–short flexicap equity SIF, which closes today, the fund has also rolled out a long–short hybrid SIF. “The objective of both schemes is to fully exploit the maximum derivatives exposure and flexibility allowed by regulation to create starkly differentiated products from our mutual fund offerings,” Tandon said.
Quant MF was the first to file Scheme Information Documents (SIDs) for SIF products. The fund has filed documents for five schemes with SEBI—of which approvals for three are already in place. Two schemes have been launched, and a third scheme is on its way. “The approvals for the fourth and fifth should also come any time soon,” Tandon said. “We will have the whole range of products, and all of them will be structured in a way that is starkly differentiated compared to our existing mutual fund schemes.”
Quant Mutual Fund has been the fastest growing mutual funds in recent years. The Sandeep Tandon founded Quant Capital Finance transformed itself into a mutual fund in 2018 after acquiring Escorts Mutual Fund with asset under management of Rs 235 crore. The fund has grown aggressively commanding assets of Rs 96,000 crore as of August 2025.
India’s First Equity Long–Short SIF
The Quant Equity SIF, India’s inaugural equity-focused Systematic Investment Fund, is designed as a flexicap fund that can take tactical long and short positions. Total gross exposure is capped at 100 percent—the maximum permitted by regulations—while short positions can reach up to 25 percent of the portfolio. The scheme, benchmarked to the Nifty 500 Total Return Index, follows a flexicap portfolio style with beta management. Indicative allocations include cash equities/equity arbitrage (65–100%, high/low risk), unhedged derivative strategies on the long side (0–35%, high risk), unhedged derivative strategies on the short side (0–25%, high risk), hedging instruments (0–100%, moderate risk), and margins such as cash, T-bills, and government securities (0–15%, minimal risk). The fund will maintain a minimum equity exposure (long plus short) of 80 percent.
The Hybrid Long-Short
The QSIF Hybrid Long–Short Fund combines equity long–short strategies with a conservative debt component. Opened on September 25, 2025, and closing on October 9, the hybrid SIF is described by Tandon as a long–short Balanced Advantage Fund aimed at delivering steady returns with lower volatility and reduced drawdowns. The fund balances equity arbitrage, opportunistic long and short derivative positions, and investment-grade debt with durations from three months to three years. It also explores IPOs, pair trades, covered calls, and REITs/InvITs, with shorts allowed across equity and debt derivatives up to 25 percent.
Quant’s Edge
Tandon highlighted Quant’s long experience in managing long–short trading strategies as a significant competitive advantage. “We (Quant in its earlier avatar) were among the first in India to secure NSE co-location licenses in 2008 and ran one of the country’s earliest high-frequency trading operations for nearly a decade, generating consistent profits even during the Lehman crisis. That experience allows us to manage risk at a level most in the industry haven’t faced,” he said.
The two SIFs on offer currently—the Long–Short Flexicap and Long–Short BAF—follow Quant’s Systematic Active Investing philosophy, blending the structural discipline of passive investing with active responsiveness. “We set boundaries in advance—what you will do, what you will never do, and under what conditions. Discipline cuts risk while still allowing you to capture alpha,” Tandon said.
Portfolio Construction and Return Guidance
While the fund house has not provided return targets, Tandon said beta management and hedging reduce volatility, allowing a focus on risk-adjusted performance rather than maximizing returns. For medium- to long-term investors, he recommends combining traditional mutual funds with SIF strategies to enhance diversification and reduce portfolio volatility. “Mutual funds provide core holdings. Our SIFs are completely tactical. Together, they create a more balanced, resilient portfolio,” he said.
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