Edelweiss Mutual Fund has announced a new product in the alternative investment space. The company will launch a hybrid long-short fund under its Altiva SIF platform.
According to the Economic Times, this will be India’s first fund of its kind available to investors through the mutual fund route. The fund is designed to combine equity, debt, and derivatives strategies.
The long-short structure allows managers to take both buy (long) and sell (short) positions in stocks. This flexibility can help generate returns even when markets are volatile. It also gives the fund the ability to hedge against sudden downturns.
Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, said the fund was created to meet demand for products that balance growth with risk protection. She added that global investors have used such strategies for years, and India is now ready for them at scale.
The launch also comes at a time when Indian investors are looking for more sophisticated products. Rising market uncertainty and geopolitical risks have pushed demand for funds that go beyond traditional equity and debt.
Market experts believe the hybrid long-short approach could appeal to high-net-worth investors and institutions. Retail participation, however, may depend on how clearly the risks and mechanics are explained.
The fund will open for subscription later this year, subject to regulatory approvals. Edelweiss says it will actively manage allocations between equity and debt, while using derivatives to manage downside risks.
