Investors seek to curb downside, with volatility hitting long-only products

In March, the ITI Long Short Equity Fund was down 0.48 per cent, as against Nifty's correction of 23.25 per cent

The sharp hit on returns from long-only products in portfolio management services (PMSes) and equity mutual funds (MFs) has prompted high net-worth investors (HNIs) to direct part of their allocations to long-short strategies to protect downside and optimise their portfolio returns.

“HNIs and family offices are looking for options where they can protect their capital in the prevailing volatile environment,” said Rajesh Bhatia, managing director and chief investment officer, ITI Long Short Equity Fund.

In March, ITI Long Short Equity Fund was down 0.48 per cent, as against the Nifty’s correction of 23.25 per cent.