Specialized Investment Funds (SIFs) are revolutionizing mutual fund investing for high-net-worth individuals. Bandhan Mutual Fund’s Arudha SIF launches two powerful long-short strategies: Arudha Hybrid Long-Short Fund (balanced equity-debt) and Arudha Equity Long-Short Fund (pure equity focus). Both target ₹10 lakh minimum investors (accredited investors start at ₹1 lakh) seeking hedge fund-style alpha through derivatives and tactical positioning.
What Makes Long-Short Strategies Special?
Long-short investing buys promising stocks (“long”) while betting against overvalued ones (“short”) using derivatives like futures and options.
Key benefits:
- Market protection: Shorts profit during downturns
- Alpha generation: Outperforms benchmarks in sideways markets
- Flexibility: Up to 25% unhedged shorts + 100% gross exposure
Arudha SIFs bring this institutional strategy to India’s HNIs under SEBI’s 2025 SIF framework.
Arudha Hybrid Long-Short Fund: Conservative Growth with Protection
This interval scheme balances equity growth (35-65%) with debt stability (35-65%), using shorts across both asset classes for optimal returns.
Key Highlights:
- Type: Interval (daily subscriptions, redeem Mon/Thu).
- Objective: Short-to-medium term optimal returns via equity-debt mix + derivatives.
- Benchmark: CRISIL Hybrid 85:15 Conservative Index.
- Risk Band: Level 3 (moderate).
- Fund Managers: Team-led by Bandhan AMC experts.
- Minimum Investment: ₹10 lakh (SIP ₹10K+ for 6 instalments).
- Exit Load: Nil.
Best for: Investors wanting equity participation with debt safety net and derivative downside protection.
Arudha Equity Long-Short Fund: Pure Equity Alpha Generator
A high-conviction equity strategy (80-100% allocation) targeting long-term capital appreciation across market caps.
Key Highlights:
- Type: Open-ended (daily buy/redeem).
- Objective: Long-term growth via listed equities + limited shorts.
- Allocation: 80-100% equity/equity-related (up to 25% shorts), 0-20% debt/REITs.
- Benchmark: NIFTY 500 TRI (broad market coverage).
- Risk Band: Level 5 (highest).
- Fund Managers: Nilesh Saha (equity) + Brijesh Shah (debt/overlay).
- Minimum Investment: ₹10 lakh (SIP ₹10K+).
- Exit Load: 0.50% within 30 days.
Best for: Aggressive investors chasing superior equity returns with tactical short protection.
Quick Comparison: Hybrid vs Equity Long-Short
| Feature | Arudha Hybrid Long-Short | Arudha Equity Long-Short |
|---|---|---|
| Type | Interval (Mon/Thu redemptions) | Open-ended (daily) |
| Core Allocation | 35-65% equity + 35-65% debt | 80-100% equity |
| Benchmark | CRISIL Hybrid 85:15 Conservative | NIFTY 500 TRI |
| Shorts | Equity + debt (25% cap) | Equity only (25% cap) |
| Risk Band | Level 3 (Moderate) | Level 5 (High) |
| Exit Load | Nil | 0.50% <30 days |
| IDCW Options | Daily/Weekly/Monthly payout/reinvestment | Same flexible IDCW |
| Listing | BSE/NSE proposed | None needed |
| Suitable For | Balanced risk-return seekers | High-growth equity hunters |
Common: Direct/Regular plans, SIP/SWP/STP (₹10K min), ₹10L PAN-level threshold across Arudha SIFs.
Costs, Taxes & Risks Made Simple
- Expense Ratio: Competitive SIF TER (disclosed post-launch).
- Stamp Duty: 0.005% on purchases.
-
Taxes: Equity-oriented treatment
- LTCG (>₹1.25L): 12.5%
- STCG: 20% slab
-
Risks:
- Derivatives (basis/liquidity risk)
- Market volatility + credit events
- Higher than vanilla MFs—Level 5 for Equity fund
NAV: Daily by 11 PM ; portfolios bi-monthly.
Who Should Invest in Arudha SIF Funds?
Perfect for:
- Accredited HNIs (₹2Cr+ income/₹7.5Cr+ net worth)
- Portfolio diversifiers seeking market-neutral returns
- Existing Bandhan MF investors upgrading to SIF sophistication
Both funds offer professional derivative strategies (covered calls, protective puts, spreads, straddles) managed by Bandhan’s experienced team.
Ready to Upgrade Your Portfolio?
NFO Alert: Arudha strategies launch at ₹10/unit. Secure your allocation in Bandhan’s latest SIF innovation.
✅ Accredited Investors: Start at just ₹1 lakh
✅ SIP Ready: ₹10K instalments (min 6)
✅ Flexible Payouts: Daily/weekly/monthly IDCW options
Claim your FREE Arudha SIF Portfolio Assessment — 15-minute CFP professional consultation to match these strategies to your goals. Slots filling fast!
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