HDFC Mutual Fund has entered the specialised investment fund (SIF) segment with the launch of its H-SIF platform and introduced the H-SIF Hybrid Long-Short Fund as its first investment strategy. 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 in both asset classes through derivatives. It is positioned as an ‘Arbitrage+’ strategy and is designed to generate returns through interest income, arbitrage spreads, option premiums and tactical investments in special situations rather than depending solely on market movements.
The launch comes amid heightened volatility in Indian equity markets. According to HDFC Mutual Fund, the Nifty 50 witnessed sharp corrections in March and September 2026, with the latter marking its steepest monthly decline since March. The fund house said such market conditions have made investors increasingly interested in investment options that allow market participation while managing risk.
The assets under management of the SIF category have increased from around ₹2,010 crore in October 2025 to ₹38,287 crore in September 2026, according to data from the Association of Mutual Funds in India (AMFI). Hybrid long-short strategies account for the largest share of this category.
How will the H-SIF Hybrid Long-Short Fund invest?
The fund will be built around a core portfolio comprising high-safety debt instruments, arbitrage opportunities and real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This allocation is intended to provide a relatively stable return profile.
Around this core, the strategy will use derivatives primarily for risk management. These may include hedging positions, earning option premiums and taking limited short positions of up to 25% of net assets.
The fund will also seek opportunities through corporate events such as initial public offerings (IPOs), buybacks, open offers and mergers. Its preferred investment horizon is more than 18 months, and the strategy is intended for flat, mildly rising and volatile market conditions.
Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company, said the platform would offer investors access to sophisticated investment strategies within a regulated and transparent framework. He said H-SIF would draw on the fund house’s experience in equities, derivatives and fixed income, along with its focus on risk management.
Paul S Parampreet, Fund Manager – Equities at HDFC Asset Management Company, said the strategy would seek to diversify its sources of returns and use derivatives to manage risk and potentially benefit during periods of elevated volatility.
Minimum investment and fund management
The minimum investment requirement is ₹10 lakh across SIF strategies at the PAN level. Accredited investors can invest a minimum of ₹10,000, subject to applicable conditions.
Subscriptions will be accepted daily, while redemptions will be available twice a week, on Mondays and Wednesdays. An exit load of 0.5% will apply to units redeemed or switched out within 90 days of allotment. No exit load will be charged after this period.
The strategy will be managed by Paul S Parampreet and Ihab Dalwai for equities, Anil Bamboli for debt and Gopal Agrawal for overseas investments.
The investment strategy is proposed to be listed on the NSE and/or BSE. HDFC Mutual Fund has cautioned that investments in specialised investment funds involve relatively higher risks, including potential loss of capital, liquidity risk and market volatility.