Edelweiss Launches Altiva Hybrid Long Short Fund: India’s First Hybrid Long Short SIF

Edelweiss Mutual Fund has announced the launch of Altiva Hybrid Long-Short Fund, the country’s first Hybrid Long-Short Specialised Investment Fund (SIF). The fund brings together equity, debt, arbitrage, and derivatives strategies to create a unique income-oriented solution.

The New Fund Offer (NFO) will be open for subscription from 1st October 2025 to 15th October 2025.

What is a Specialised Investment Fund (SIF)?

Specialised Investment Funds, or SIFs, are a new category of funds introduced by SEBI to offer investors innovative strategies that go beyond traditional mutual funds. These funds provide flexibility to combine different investment approaches, such as equity, debt, derivatives, and arbitrage, helping investors balance risk and reward in a more sophisticated manner.

In simple terms, SIFs are designed for investors who want access to advanced investment strategies, typically available only to institutional players, but within a regulated and structured framework.

Key Details of Altiva Hybrid Long-Short Fund

• Objective: To generate returns by combining equity opportunities with income from arbitrage, derivatives, special situations, and fixed income.
• Benchmark: NIFTY 50 Hybrid Composite Debt 50:50 Index.
• Strategy Category: Hybrid Long-Short Fund.
• Fund Managers:
  
  • Equity: Bharat Lahoti, Bhavesh Jain
  • Debt: Dhawal Dalal, Pranavi Kulkarni
  • Overseas: Amit Vora
• Subscription: Daily.
• Redemption: Twice a week (Monday and Wednesday).
• Plans: Direct and Regular, with options for Growth and IDCW.
• Exit Load:
  
  • 0.5% if redeemed within 180 days.
  • No charge after 180 days.
• Minimum Investment: ₹10 lakh (lump sum, SIP, STP, or SWP options available).

How Will It Be Taxed?

Tax treatment of SIFs is different from traditional equity or debt funds. For Altiva Hybrid Long-Short Fund:

• Short-Term Capital Gains (STCG): Taxed as per the investor’s income tax slab if held for up to 24 months.
• Long-Term Capital Gains (LTCG): 12.5% tax if held for more than 24 months.

Comparison with Other SIF Strategies:

• Debt-focused SIFs: Taxed as per the income slab for both STCG and LTCG.
• Equity-focused SIFs: 20% tax for STCG (up to 12 months) and 12.5% LTCG (beyond 12 months).

Conclusion

The launch of Altiva Hybrid Long-Short Fund marks an important milestone as India’s first Hybrid Long-Short SIF. With its unique mix of arbitrage, fixed income, derivatives, and selective equity plays, the fund aims to provide investors with a more balanced and income-oriented strategy.

For investors seeking a diversified approach with advanced strategies and comfortable with a minimum investment of ₹10 lakh, this fund could be worth exploring during its NFO window from 1st to 15th October 2025.


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