Quant MF launches India’s first equity long-short SIF: How Specialised Investment Funds differ from MFs

Quant Mutual Fund has unveiled India’s first Equity Long-Short Specialised Investment Fund (SIF). Named the QSIF Equity Long-Short Fund, it is an open-ended equity strategy that blends traditional stock investing with limited short exposure through derivatives.

The new fund offer (NFO) will be open for subscription until October 1. Units will be available for continuous sale and repurchase within five business days from allotment.

The fund’s objective is to deliver long-term capital appreciation by investing in a diversified mix of listed equities and equity-related instruments while using derivative strategies to manage risk and potentially enhance returns. Performance will be measured against the Nifty 500 Total Return Index.

The fund will be managed by Sandeep Tandon, Lokesh Garg, Sameer Kate, Ankit Pande, and Sanjeev Sharma.

How the fund allocates assets?

• 65–100% in all-cap cash equity or equity arbitrage
• 0–35% in long derivative strategies
• 0–25% in short derivative strategies
• 0–100% in hedging instruments
• 0–15% in margins (cash, T-bills, G-sec)

According to Quant, the flexi-cap long-short approach allows the fund to be market-cap agnostic, providing flexibility to take both long and short positions while managing risk through derivatives.

What makes a Specialised Investment Fund different?

A SIF sits between mutual funds and Portfolio Management Services (PMS), offering a balance of flexibility and accessibility:

Target investors: Those comfortable with moderate market fluctuations seeking potentially higher returns.

Why SIFs exist: SEBI introduced them to bridge the gap between mutual funds, which follow strict rules, and PMS, which allow full flexibility but require a high minimum investment (₹50 lakh). SIFs require a lower minimum of ₹10 lakh, making sophisticated investing more accessible.

Investment strategy: The fund buys stocks it expects to rise (long positions) and also bets against some stocks (short positions) using derivatives. This approach helps manage risk and diversify returns.

Open-ended: Investors can enter or exit the fund anytime, unlike PMS, which are typically locked in for a period.

The QSIF Equity Long-Short Fund is positioned as a modern, flexible investment option for investors looking for equity growth with strategic risk management, bridging the gap between traditional mutual funds and high-end PMS solutions.