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Long-short equity strategies for growth-focused investors seeking alpha generation through sophisticated stock selection and hedging.

How Long-Short Hedge Works

Equity SIFs employ a sophisticated long-short strategy that allows fund managers to profit from both rising and falling stock prices. This approach involves:

  • Long Positions: Buying stocks expected to increase in value based on fundamental analysis
  • Short Positions: Selling borrowed stocks expected to decrease, profiting from the price decline
  • Hedging: Using derivatives to protect against market downturns while maintaining upside potential

Available Equity SIF Schemes

QSIF Equity Long-Short Fund

Long-Short Equity

Quant Mutual Fund

A sophisticated equity strategy that combines long positions in undervalued stocks with short positions in overvalued ones, aiming to generate alpha regardless of market direction.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

15 Days / 1%

Benchmark

NIFTY 500 Total Return Index (TRI)

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

QSIF Ex-Top 100 Small and Mid Cap Long-Short Fund

Long-Short Equity

Quant Mutual Fund

A focused equity strategy targeting small and mid-cap stocks excluding the top 100 companies, employing long-short techniques to capture alpha in this segment.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

15 Days / 1%

Benchmark

NIFTY 500 Total Return Index (TRI)

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

Diviniti Equity Long Short Fund

Long-Short Equity

ITI Mutual Fund

A sophisticated equity long-short strategy that combines long positions in undervalued stocks with short positions in overvalued ones, aiming to generate alpha regardless of market direction.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

6 months/ 0.5%

Benchmark

NIFTY 50 (TRI INDEX)

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

iSIF Equity Ex-Top 100 SMID Long-Short Fund

Long-Short Equity

ICICI Prudential Mutual Fund

A focused equity strategy targeting small and mid-cap stocks excluding the top 100 companies, employing long-short techniques to capture alpha in this segment.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

12 months / 1%

Benchmark

Nifty 500 TRI

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

Arudha Equity Long-Short Fund

Long-Short Equity

Bandhan Mutual Fund

A sophisticated equity long-short strategy that combines long positions in undervalued stocks with short positions in overvalued ones, aiming to generate alpha regardless of market direction.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

30 days / 0.5%

Benchmark

Nifty 500 TRI

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

WSIF Equity Long Short Fund

Long-Short Equity

The Wealth Company Mutual Fund

A sophisticated equity long-short strategy that combines long positions in undervalued stocks with short positions in overvalued ones, aiming to generate alpha regardless of market direction.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

No exit load

Benchmark

Nifty 500 TRI

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

WSIF Equity Ex-Top 100 SMID Long-Short Fund

Long-Short Equity

The Wealth Company Mutual Fund

A focused equity strategy targeting small and mid-cap stocks excluding the top 100 companies, employing long-short techniques to capture alpha in this segment.

Risk: Risk Band 5

Min. Investment

Rs 10 Lakh

Expense Ratio

2.25%

Exit Load

No exit load

Benchmark

Nifty 500 TRI

Redemption

Daily

Taxation

Equity STCG-20% (holding<12 months); Equity LTCG – 12.5% (holding >12 months)

Dividend

Growth & IDCW options available

Risks to Consider

Market Risk

Equity markets can be volatile. Long-short strategies aim to reduce but cannot eliminate market risk entirely.

Derivative Risk

Use of derivatives for hedging introduces counterparty risk and potential for amplified losses.

Short Selling Risk

Short positions have theoretically unlimited loss potential if the shorted stock rises significantly.

Liquidity Risk

Some positions may be difficult to exit during market stress, affecting fund performance.

Ready to Invest in Equity SIF?

Book a consultation to understand which equity strategy suits your investment goals.

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