HSBC Mutual Fund has launched the RedHex Hybrid Long-Short Fund, a Specialised Investment Fund (SIF) strategy designed for investors seeking regular returns and capital appreciation. The strategy combines investments across asset classes, including fixed income, equity arbitrage, Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), to pursue risk-adjusted returns across market cycles.
The New Fund Offer (NFO) is open for subscription and will close on June 16. According to the fund house, the RedHex Hybrid Long-Short Fund is built for investors seeking a blend of stability and alpha potential.
What is the RedHex Hybrid Long-Short Fund?
The strategy uses a 50:50 allocation across debt, REITs and InvITs, and equity arbitrage. HSBC Mutual Fund said the fund targets steady, accrual-led returns with relatively low volatility, aiming to deliver a smoother experience across market conditions.
The fund has been designed to remain relevant across market cycles through a combination of credit exposure, liquidity management and active risk controls. According to the fund house, the strategy seeks to generate healthy absolute income while limiting downside risk.
HSBC Mutual Fund said the approach is backed by an experienced team with capabilities across credit, derivatives and special situations.
What did HSBC Mutual Fund say?
“Investors today are more aware and require unique solutions that are professionally managed and built to navigate complex market conditions. RedHex Hybrid Long-Short Fund is designed as a practical middle ground – offering the clarity investors expect from mutual funds, with added flexibility of a product which is designed to be less volatile while giving superior, tax-efficient risk-adjusted returns,” said Kailash Kulkarni, CEO, HSBC Mutual Fund.
Who will manage the fund?
The fund’s performance will be benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index.
The fund will be managed by Shriram Ramanathan for the debt portion, InvITs and REITs, Venugopal Manghat for equities, Praveen Ayathan for arbitrage, and Mayank Chaturvedi for foreign securities.
What are the investment details?
According to HSBC Mutual Fund, the strategy aims to offer tax and risk-return efficiency compared with traditional fixed-income options by combining diversified return drivers, disciplined risk management and a long-term outcomes focus.
The RedHex Hybrid Long-Short Fund offers an intermediate investment that combines the regulatory transparency of mutual funds with portfolio flexibility. The product is suited to ‘mid-ticket’ investors, with a minimum application of Rs 10 lakh and in multiples of Re 1 thereafter.