Invesco Mutual Fund’s Summit SIF has launched the Summit Active Asset Allocator Long-Short Fund, an investment strategy that will seek to capture arbitrage opportunities across equity, debt, derivatives, infrastructure investment trusts (InvITs) and commodities.
The new fund offer (NFO) opened for subscription on October 12 and will close on October 26.
The fund will follow a multi-arbitrage approach, combining conventional cash-futures arbitrage with opportunities in synthetic arbitrage, index arbitrage, commodity arbitrage and special situations. It will also be permitted to take limited short exposure through derivatives in eligible instruments.
According to the fund house, the strategy aims to capture price spreads across instruments and asset classes while keeping directional market exposure limited. Returns will depend on the availability of arbitrage opportunities, execution and prevailing market conditions.
Deepak Gupta will manage the fund. Its benchmark is a composite of the Nifty 500 Total Returns Index (40%), CRISIL Short Term Bond Fund Index (40%) and iCOMDEX Composite Index (20%).
The minimum investment during the NFO is ₹10 lakh for regular investors and ₹1 lakh for accredited investors. Systematic investment plan (SIP) applications start at ₹1,000, subject to maintaining a minimum investment threshold of ₹10 lakh across all Summit SIF investment strategies.
Subscriptions will be accepted daily at the applicable net asset value (NAV), while redemptions will be available twice a week, on Mondays and Wednesdays, subject to business-day rules.
An exit load of 0.50% will apply if units are redeemed or switched out within 30 days of investment. The charge will be 0.25% for redemptions or switches after 30 days and up to 60 days. No exit load will apply after 60 days.
Specialised Investment Funds (SIFs) can offer investment strategies with greater flexibility than conventional mutual fund schemes, including permitted use of derivatives and limited short exposure, subject to regulatory requirements.
Such strategies can carry risks, including potential loss of capital, liquidity risk and market volatility. Investors should read the scheme-related documents before investing.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.