Key Takeaways
- • HDFC Mutual Fund's H-SIF Hybrid Long-Short Fund, a Specialized Investment Fund (SIF), opens its NFO on November 13, 2026 and closes on November 27, 2026.
- • The fund can hold short positions of up to 25% of net assets through derivatives, with a core portfolio of debt, arbitrage opportunities, REITs and InvITs.
- • Minimum investment is ₹10 lakh across SIF strategies at the PAN level; accredited investors can invest from ₹10,000, subject to conditions.
- • Redemptions are permitted on Mondays and Wednesdays, with a 0.5% exit load for redemptions or switches within 90 days and nil thereafter; HDFC recommends an investment horizon exceeding 18 months.
- • HDFC states the strategy does not guarantee positive returns in market declines or protection against capital losses, and the fund carries market, liquidity and capital-loss risks.
Summary
HDFC Mutual Fund has launched the H-SIF Hybrid Long-Short Fund, a Specialized Investment Fund, with its new fund offer (NFO) open from November 13 to November 27, 2026. Unlike traditional long-only equity strategies, which benefit mainly from rising prices, the fund's long-short approach combines investments expected to appreciate with positions designed to profit from falling prices or offset portfolio risk.
The strategy is built on a core portfolio of debt securities, arbitrage opportunities, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Around this core, the fund may use derivatives for hedging, earning option premiums and taking limited short positions. Short exposure is capped at 25% of net assets, which the fund could use to offset some losses during market corrections. Short positions can also generate losses if markets move against them.
According to the fund's stated approach, return sources include interest income, arbitrage spreads, option premiums and selective participation in corporate events such as IPOs, buybacks, open offers and mergers. HDFC aims for a relatively steady return profile across flat, mildly rising and volatile markets rather than relying on market direction. Paul S Parampreet, Fund Manager–Equities at HDFC Asset Management Company, said, "Our focus is on building a portfolio that does not rely on a single source of return," adding that derivatives would allow the team to manage risk actively and seek to benefit when volatility is elevated.
For investors, subscriptions are available daily, and redemptions are permitted on Mondays and Wednesdays. The minimum investment is ₹10 lakh across SIF strategies at the PAN level, while accredited investors can invest ₹10,000 subject to applicable conditions. An exit load of 0.5% applies within 90 days, and HDFC recommends an investment horizon exceeding 18 months. The source notes that the strategy does not guarantee positive returns during market declines or protection against capital losses, and that derivatives-based strategies cannot eliminate market uncertainty. Investors are advised to assess their risk appetite, liquidity requirements and investment horizon before committing funds.
The strategy is built on a core portfolio of debt securities, arbitrage opportunities, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Around this core, the fund may use derivatives for hedging, earning option premiums and taking limited short positions. Short exposure is capped at 25% of net assets, which the fund could use to offset some losses during market corrections. Short positions can also generate losses if markets move against them.
According to the fund's stated approach, return sources include interest income, arbitrage spreads, option premiums and selective participation in corporate events such as IPOs, buybacks, open offers and mergers. HDFC aims for a relatively steady return profile across flat, mildly rising and volatile markets rather than relying on market direction. Paul S Parampreet, Fund Manager–Equities at HDFC Asset Management Company, said, "Our focus is on building a portfolio that does not rely on a single source of return," adding that derivatives would allow the team to manage risk actively and seek to benefit when volatility is elevated.
For investors, subscriptions are available daily, and redemptions are permitted on Mondays and Wednesdays. The minimum investment is ₹10 lakh across SIF strategies at the PAN level, while accredited investors can invest ₹10,000 subject to applicable conditions. An exit load of 0.5% applies within 90 days, and HDFC recommends an investment horizon exceeding 18 months. The source notes that the strategy does not guarantee positive returns during market declines or protection against capital losses, and that derivatives-based strategies cannot eliminate market uncertainty. Investors are advised to assess their risk appetite, liquidity requirements and investment horizon before committing funds.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.