AlphaGrep Mutual Fund has launched the Eminence Hybrid Long-Short Fund under its Specialised Investment Fund (SIF) platform, with the new fund offer (NFO) scheduled to open on October 14 and close on October 28.
The interval investment strategy will combine equity long-short positions, special situations, options strategies, arbitrage and fixed-income investments in a single portfolio. It will also permit limited short exposure in equity and debt through derivatives, subject to the applicable framework.
According to the fund house, the strategy aims to generate returns from multiple investment opportunities rather than depending primarily on the direction of equity markets. However, returns will depend on market conditions, the performance of individual strategies and the fund manager’s investment decisions.
The fund will be benchmarked against the Nifty 50 Hybrid Composite Debt 50:50 Index (TRI). The suggested investment horizon is 12 months or longer, according to the fund house.
The minimum investment is ₹10 lakh for regular investors and ₹1 lakh for accredited investors.
Bhautik Ambani, CEO of AlphaGrep Mutual Fund, said the strategy draws on the group’s experience managing quantitative long-short strategies through its Category III Alternative Investment Fund (AIF) business.
Specialised Investment Funds are designed to offer investment strategies with greater flexibility than conventional mutual fund schemes, including the use of permitted derivatives and limited short exposure.
Such strategies can carry risks arising from market movements, derivatives positions and liquidity conditions.
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