India’s First Hybrid SIF (Specialized Investment Fund): What Makes Edelweiss’s Altiva Fund a Game-Changer?
The Indian investment landscape is changing rapidly. Over the years, we have seen the rise of equity mutual funds, debt funds, balanced funds, and even international funds. But now, a new chapter is opening with the arrival of Specialized Investment Funds (SIFs). Leading this move is Edelweiss Mutual Fund, which has filed draft papers for its Altiva Hybrid Long-Short Fund, India’s first hybrid long-short SIF.
For many investors, this sounds like a complex product. What exactly is a hybrid long-short fund? How does it differ from traditional mutual funds? What benefits does it offer, and who should consider investing in it? Let’s explore these key questions in detail.
📌 What is the Altiva Hybrid Long-Short Fund?
The Altiva Hybrid Long-Short Fund is part of Edelweiss Mutual Fund’s new Altiva SIF platform. It is designed as a hybrid long-short interval strategy, which means it will invest in both equity (stocks) and debt (bonds and fixed-income securities).
Unlike traditional mutual funds, this scheme will also use derivatives and arbitrage strategies in a limited manner to balance growth potential and risk management. In simple words, the fund aims to generate capital appreciation (growth) through equity while also ensuring a steady income flow through debt and special strategies.
The fund is positioned as a unique product because it brings together the strengths of multiple investment styles—equity investing, debt allocation, and derivatives—within a regulated and structured SIF framework.
📌 Key Announcement by Edelweiss CEO
Radhika Gupta, CEO of Edelweiss Mutual Fund, announced the launch of this fund on social media. She expressed her excitement about introducing India’s first hybrid SIF, stating that the team has been in discussions with investors and partners for months. She highlighted that Altiva Long Short SIF is intended to be a solution-driven fund for sophisticated investors looking for differentiated opportunities.
Her post made it clear that Edelweiss is not just launching a new product, but opening up a new category of investments in India through SIFs.
📌 Investment Objective
The official objective of the Altiva Hybrid Long-Short Fund is:
To generate capital appreciation through equities (by investing in company shares).
To earn income through arbitrage, derivative strategies, special situations, and fixed-income investments.
It is important to note that the fund does not guarantee or assure returns. Like all market-linked products, the actual performance will depend on market conditions, fund management decisions, and overall economic factors.
📌 Benchmark
The performance of the fund will be measured against the NIFTY 50 Hybrid Composite Debt 15:85 Index.
This index is designed to reflect a blend of equity (15%) and debt (85%) exposure, which matches the fund’s strategy.
The choice of benchmark shows that the scheme is built around balanced diversification rather than being overly aggressive on equities.
📌 Who Will Manage the Fund?
The Altiva Hybrid Long-Short Fund will be managed by a team of experienced fund managers, including:
Bhavesh Jain
Bharat Lahoti
Dhawal Dalal
Amit Vora
Each of them brings expertise in different aspects of fund management—ranging from equity strategies to debt investments and derivatives. A team-based approach ensures that different market perspectives are combined to optimize returns.
📌 Liquidity and Redemption Rules
Since this is an interval fund, investors cannot redeem their money daily like in open-ended mutual funds. Instead:
Direct redemption or switch facility will be available twice a week—on Mondays and Wednesdays.
For demat investors, the fund will also be listed on NSE, allowing them to sell units in the secondary market.
This structure provides some liquidity but encourages investors to remain invested for the medium to long term.
📌 Plans and Options
The scheme will be available in:
Regular Plan (through distributors)
Direct Plan (for investors investing directly without intermediaries)
Both plans will offer two options:
Growth Option – Profits remain invested, helping compounding over time.
IDCW Option (Income Distribution cum Capital Withdrawal) – Allows investors to receive periodic payouts.
The default option is the Growth Plan, which suits long-term wealth creation.
📌 Minimum Investment
The fund has different entry points depending on the type of investor:
General investors: Minimum ₹10 lakh (and multiples of ₹1 thereafter)
Accredited investors: Minimum ₹1 lakh (and multiples of ₹1 thereafter)
SIP/STP/SWP: Minimum ₹10,000 (and multiples of ₹1 thereafter)
This shows that the scheme is primarily targeted at high-net-worth individuals (HNIs) and sophisticated investors, given the relatively high minimum investment for general investors.
📌 Exit Load
The fund has a simple exit load structure:
0.5% if redeemed within 180 days
No exit load after 180 days
This encourages investors to stay invested for at least six months to realize the full potential of the strategy.
📌 NAV Disclosure
The first NAV (Net Asset Value) will be declared within 5 business days of allotment.
After that, NAVs will be updated daily on the Edelweiss AMC and AMFI websites.
Regular NAV updates help investors track performance transparently.
📌 What is a Specialized Investment Fund (SIF)?
To understand why the Altiva Hybrid Long-Short Fund is important, one must know what a SIF is.
A Specialized Investment Fund (SIF) is a regulated investment structure designed for niche investment strategies.
Unlike traditional mutual funds, SIFs allow fund managers to explore alternative strategies like long-short positions, arbitrage, event-based investing, and hybrid allocations.
They are usually targeted at sophisticated investors who are comfortable with higher risks in exchange for potentially higher returns.
In May 2025, Edelweiss announced the creation of Altiva SIF, its platform to offer specialized investment solutions across equity, hybrid, and fixed-income categories. The Hybrid Long-Short Fund is the first product under this platform.
📌 Why a Long-Short Strategy?
A long-short strategy allows fund managers to:
Go long (buy shares expected to rise in value).
Go short (sell borrowed shares of companies expected to fall in value).
This way, the fund can potentially make money in both rising and falling markets.
By combining long equity positions with short derivative positions and debt securities, the Altiva Hybrid Long-Short Fund aims to:
Reduce volatility
Hedge against market downturns
Provide smoother returns compared to pure equity funds
📌 Who Should Invest in Altiva Hybrid Long-Short Fund?
This scheme is not designed for every investor. It is more suitable for:
High-Net-Worth Individuals (HNIs) looking for diversification.
Accredited investors who want access to specialized strategies.
Experienced investors who understand the risks of derivatives and alternative investments.
Investors seeking balance between growth (through equity) and stability (through debt and arbitrage).
On the other hand, small retail investors who prefer simple SIPs in traditional mutual funds may find the entry barrier (₹10 lakh minimum investment) too high.
📌 Risks Involved
Like all market-linked funds, this scheme carries certain risks:
Market Risk: Equity investments can fluctuate with market conditions.
Credit Risk: Debt investments are subject to default or downgrade risk.
Derivative Risk: Use of derivatives can magnify both gains and losses.
Liquidity Risk: Interval fund structure limits immediate redemption.
Concentration Risk: Specialized strategies may not always be diversified across sectors.
Investors should carefully assess their risk appetite before investing.
📌 Benefits of the Fund
Despite the risks, the Altiva Hybrid Long-Short Fund offers several potential advantages:
Diversification: Exposure to equity, debt, and derivatives within one fund.
Risk Management: Ability to hedge positions using long-short strategies.
Professional Management: Managed by a team of experienced fund managers.
Transparency: Daily NAV disclosure and regulated by SEBI.
Innovation: First of its kind in India, offering unique opportunities for sophisticated investors.
📌 India’s First Hybrid SIF – Why It Matters
The launch of Altiva Hybrid Long-Short Fund is significant because:
It marks the entry of SIFs into mainstream investing in India.
It shows that Indian mutual funds are now moving towards alternative investment styles, which were earlier limited to hedge funds or global markets.
It could pave the way for more innovative financial products in the future.
For the Indian market, this represents an evolution in investment opportunities, giving investors access to strategies that were previously out of reach.
📌 Final Thoughts
The Altiva Hybrid Long-Short Fund by Edelweiss Mutual Fund is a landmark product. As India’s first hybrid long-short SIF, it opens new doors for investors seeking diversified, professionally managed, and innovative strategies.
However, this fund is clearly not for everyone. With a high minimum investment and complex strategies, it is meant for sophisticated investors who understand risks and want to diversify beyond traditional mutual funds.
For everyday retail investors, regular mutual funds may still be a better starting point. But for those with the capital and appetite for alternative investments, Altiva Hybrid Long-Short Fund could be a game-changer.
✅ Disclaimer: This article is written purely for informational purposes and should not be considered investment advice. Investors should do their own research or consult a registered financial advisor before making investment decisions.
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