News · BFSI
HDFC Mutual Fund has opened its H-SIF Hybrid Long-Short Fund for subscription, positioning the product as an Arbitrage+ strategy suited to volatile and flat market conditions.
✦ AI SUMMARY 30-second read
- The NFO is open for subscription and closes on November 27, with a minimum investment of Rs 10 lakh for regular investors.
- The fund will use a core of debt, arbitrage and REITs/InvITs alongside derivative strategies, with short positions capped at 25 per cent of net assets.
- The SIF category's assets have grown from about Rs 2,010 crore in October 2025 to Rs 38,287 crore in September 2026, with hybrid long-short strategies attracting the largest share.
Why it matters: The launch expands investor access to regulated, sophisticated long-short strategies as Indian equity markets navigate heightened volatility.
This summary was generated by AI. Editors may review and update it.
HDFC Mutual Fund has launched the H-SIF Hybrid Long-Short Fund through its Specialised Investment Fund platform, H-SIF, with the new fund offer open for subscription and closing on November 27.
The fund house, which serves over 1.75 crore unique investors and has been operating for more than 25 years, is positioning the product as an Arbitrage+ strategy designed for flat, mildly rising and volatile markets, with a preferred investment horizon of more than 18 months.
The strategy will be managed by Paul S Parampreet and Ihab Dalwai for equities, Anil Bamboli for debt and Gopal Agrawal for overseas investments.
What was announced
The H-SIF Hybrid Long-Short Fund proposes to build a stable core around high-degree-of-safety debt instruments, arbitrage positions and REITs/InvITs, aiming to provide a relatively steady return profile.
Around this core, the fund intends to deploy derivative strategies for risk management, including hedging, earning option premiums and taking limited short positions of up to 25 per cent of net assets.
Selective participation in corporate events such as IPOs, buybacks, open offers and mergers is also part of the approach, targeting returns from interest income, arbitrage spreads, option premiums and tactical allocation to special situations.
Investment terms
The minimum investment is Rs 10 lakh across SIF strategies at the PAN level. Accredited investors may invest a minimum of Rs 10,000, subject to applicable conditions.
Subscriptions will be available daily, while redemptions will take place twice a week, on Mondays and Wednesdays. An exit load of 0.5 per cent applies to units redeemed or switched out within 90 days of allotment; no exit load applies thereafter.
Background
Indian equity markets have been volatile through 2026, with sharp corrections in March and again in September, when the Nifty 50 recorded its steepest monthly fall since March. Such conditions have made it harder for investors to remain invested and have driven interest in products that can participate in markets while managing downside risk.
The broader SIF category has seen rapid growth in this environment, with assets rising from about Rs 2,010 crore in October 2025 to Rs 38,287 crore in September 2026, according to AMFI. Hybrid long-short strategies have attracted the largest share of that inflow.
What the fund house said
Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company, said SIFs can give investors access to sophisticated strategies within a transparent and well-regulated framework, and that the launch reflects the firm's emphasis on risk management and deep experience across equities, derivatives and fixed income.
Fund Manager Paul S Parampreet noted that periods of volatility can create opportunities for a strategy designed to use them, adding that derivatives would allow the team to manage risk actively and aim to benefit when volatility is elevated, while remaining selective and disciplined in the positions taken.
