Edelweiss' Altiva Hybrid Long-Short Fund set to be 1st SIF in hybrid space

Edelweiss Mutual Fund is set to launch its Altiva Hybrid Long-Short SIF by the end of this month. The fund will focus on fixed income, equity arbitrage, and special situations to drive returns

Edelweiss Mutual Fund (MF) has secured approval for its first specialised investment fund (SIF) and is eyeing a launch by the end of this month, according to people familiar with the matter.

 

While nearly 10 fund houses have secured SIF licences, none have launched a product so far. Quant MF is also planning to launch its first SIF later this month in the equity category.

 

Edelweiss's Altiva Hybrid Long-Short Fund will likely be the first SIF in the hybrid space. The fund will be an absolute return offering, with additional strategies aimed at driving up returns. The scheme's core allocation will go into fixed income and equity arbitrage, while the rest of the corpus will leverage special situations and low-risk derivative strategies to generate additional returns. 

 

Given the hybrid structure, returns from the scheme will be taxed at 12.5 per cent if held for over 24 months. Investments held for less than two years will attract short-term capital gains tax at the applicable slab rate.

 

SIFs allow fund houses to offer complex strategies like long-short equity and debt schemes. This product segment within the MF umbrella, which has a minimum ticket size of Rs 10 lakh, was introduced by Sebi in April 2025.

 

At least six more fund houses — ITI, Mirae, HDFC, SBI, DSP, and Bandhan — have the SIF licence in place. Several of them are awaiting fund approvals to launch their products.