Mumbai, June 11: Hybrid long-short funds emerged as the leading investment strategy within the Specialised Investment Funds (SIF) segment, contributing nearly 70 per cent of the industry’s assets under management (AUM) in May, according to a recent report.
The strong share of hybrid long-short funds highlights growing investor preference for strategies that seek to balance risk and return amid evolving market conditions. By combining long positions in expected outperforming assets with short positions in anticipated underperformers, these funds aim to generate more stable returns while reducing exposure to market volatility.
The report noted that investor interest in diversified and risk-managed investment products has been rising, particularly as market participants navigate global economic uncertainties and fluctuating equity markets. The hybrid long-short approach has gained traction for its potential to provide downside protection while maintaining opportunities for capital appreciation.
Industry experts believe the dominance of hybrid long-short funds reflects increasing sophistication among investors and a growing appetite for alternative investment strategies within the regulated investment framework.
The expanding SIF segment is expected to offer investors a broader range of portfolio solutions, catering to varying risk profiles and investment objectives. As awareness and adoption of specialized investment products continue to grow, the sector is likely to witness further innovation and asset growth in the coming months.
The report underscores the evolving nature of India’s investment landscape, where investors are increasingly seeking flexible and resilient strategies to navigate dynamic market environments.
