NFO Alert: Kotak Mutual Fund launches first SIF with hybrid long-short strategy

Kotak Mutual Fund has launched its maiden Specialised Investment Fund (SIF), the Kotak Infinity Hybrid Long-Short Fund, marking its entry into SEBI’s newly introduced SIF category.

The new fund offer (NFO) will open on June 15 and close on June 29. The scheme will reopen for continuous sale and repurchase on or before July 9.

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The strategy aims to navigate different market conditions through dynamic net equity exposure, with a focus on risk management, including downside protection. It combines long-only investments, permitted short exposures, and arbitrage opportunities, in line with regulatory limits.

“Mutual funds have created significant wealth through disciplined long-only investing. SIFs represent a natural evolution, offering greater flexibility through long-short strategies to navigate market cycles more effectively. With experience in managing hybrid strategies, the Infinity Hybrid Long-Short Fund is positioned to provide an additional approach to investing, with a focus on disciplined portfolio construction and risk management,” said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company.

The minimum investment amount is Rs 10 lakh and in multiples of Re 1 thereafter (across all investment strategies offered by the Infinity SIF at the PAN level).

The fund will be benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index and will be managed by Hiten Shah and Kalpesh Jain (equity and overseas investments) and Abhishek Bisen (debt and money market investments).

“SIFs enable a more flexible approach to portfolio construction while maintaining a strong focus on risk management. The Infinity Hybrid Long-Short Fund will invest across equities, arbitrage opportunities, and select derivative strategies, dynamically managing net equity exposure. The objective is to participate in market upside while aiming to reduce drawdowns in volatile conditions,” said Kalpesh Jain, Fund Manager – SIF at Kotak Mahindra Asset Management Company.

The launch reflects Kotak Mutual Fund’s continued focus on building relevant investment solutions aligned with evolving investor needs. The strategy is designed to offer a differentiated approach within the mutual fund framework while maintaining a strong emphasis on risk management and disciplined investing.

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The fund will be suitable for investors who are seeking long-term capital growth and want an interval investment strategy investing in equity and debt securities, including limited short exposure in equity and debt through derivatives.

The principal invested in this SIF strategy will be at risk level 2, according to the risk band of the fund.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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