Tata Mutual Fund files draft document with Sebi for hybrid long-short SIF

Tata Mutual Fund has filed a draft document with Sebi for a hybrid long-short fund under SIF category. The fund will be known as Titanium Hybrid Long-Short Fund, an interval investment strategy investing in equity and debt securities, including limited short exposure in equity and debt through derivatives.

The investment objective of the fund will be to generate medium to long term capital appreciation by investing in equity and equity related instruments as well as debt and money market instruments, including limited short exposure in equity and debt through derivatives.

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The performance of this hybrid SIF will be benchmarked against CRISIL Hybrid 50+50 - Moderate Index (TRI). This hybrid SIF will be managed by Suraj Nanda, Amit Somani, Hasmukh Devji Vishariya.

The subscription frequency is daily, the redemption frequency is once a month i.e. first working day and the units of the respective plans under the strategy will be listed on BSE.

An exit load of 1% will be applicable, if redemption/switch-out on or before expiry of one year from the date of allotment. The exit load will be nil, if redemption/switch-out after expiry of one year from the date of allotment.

The minimum aggregate investment by an investor across all investment strategies offered by Titanium SIF, at the Permanent Account Number (‘PAN’) level, shall not be less than INR 10 lakh. During NFO, the minimum amount is Rs 10 lakh and in multiples of Re 1 thereafter.

The fund will allocate 65-75% in equity and equity related instruments, 25-35% in debt and money market instruments including fixed income derivatives, and 0-10% in units issued by REITs and InviTs.

The investment strategy would be aimed at meeting the investment objective of the investment strategy. The fund manager will invest into opportunities available across the market capitalization. The investment strategy would invest in companies based on various criteria including but not limited to sound professional management, track record, industry scenario, growth prospectus, liquidity of the securities, etc.

The investment strategy will use derivatives to capture short side opportunities as well as hedge the downside risk of the portfolio. The derivatives may also be used for generating returns through arbitrage opportunities.

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The investment strategy will seek to reduce volatility of returns by actively using derivatives as hedge. The derivatives may also be used for generating returns through short side and arbitrage opportunities. This may make the investment strategy forgo some upside but can protect downside.