Portfolios need better solutions to existing problems, not more products says Radhika Gupta

Investors looking to invest in Specialised Investment Funds should first identify what they want the strategy to achieve rather than adding an SIF to their portfolio simply as another investment product, says Radhika Gupta, MD and CEO, Edelweiss Mutual Fund.

In a post on social media platform X, Gupta said that, “Many people ask me, "Do I need a SIF?" That's the wrong question. Don't ask for the product. Show me the problem………. Portfolios don't need more products. They need better solutions to existing problems.”

According to her, investors should first identify the gap in their portfolio and then look for an investment solution that addresses that specific need. She highlighted three SIF strategies showing how different portfolio requirements can be addressed through these SIFs.


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For investors looking for a more efficient alternative to traditional fixed-income investments, Gupta pointed to Hybrid Long Short strategies as a potential solution. She described this category as a “better yield solution”, aimed at addressing the need for potentially improved returns compared with traditional fixed-income options.

For investors seeking opportunities to generate higher alpha, Gupta highlighted Ex Top 100 strategies. She termed this an “alpha solution”, suggesting that such strategies can be considered by investors looking to go beyond conventional market returns.

Gupta also highlighted Equity Long Short strategies for investors seeking core equity exposure while aiming to add some incremental alpha and reduce portfolio volatility.

She described Equity Long Short as an “efficient beta solution”, positioning it as an approach for investors who want equity participation without taking the same level of market exposure or volatility as a traditional long-only equity portfolio.

The broader message from Gupta is that investors should avoid adding products to their portfolios simply because they are new or offer a different structure. Instead, every investment should have a clear role in addressing a specific portfolio requirement.

Portfolios don’t need more products. They need better solutions to existing problems, according to Radhika Gupta. Instead of asking whether investors need a particular product such as a Specialized Investment Fund (SIF), Gupta believes the starting point should be the investment problem that needs to be solved.

In another post on Saturday, Gupta hinted at a new SIF launch by Edelweiss MF’s Altiva SIF. The CEO said that this new launch takes the problem of largecap alpha and gives it a twist as over Rs 12.2 lakh crore is invested in Large Cap strategies (active + passive) across 5.1 crore accounts. In the last three years, these strategies have seen inflows of Rs 2.48 lakh crore, with nearly 80% flowing into passive funds.

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Largecaps are the core of most portfolios, offering stability, resilience, and long-term wealth creation. However, generating consistent alpha through stock selection alone can be challenging in a well-researched and efficiently priced market.

She highlighted that passive funds are equal to market returns only and large cap funds are equal to market returns and alpha through stock picking.

“Inconsistent because of how well researched the category is. Altiva Long Short SIF = Market returns + alpha via income oriented derivative strategies like covered call. Bringing the expertise we brought in Hybrid SIF to deliver more consistent large cap alpha,” She further said.

(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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