What is a Specialized Investment Fund (SIF)?
A Specialized Investment Fund (SIF) is a new investment product introduced by SEBI to bridge the gap between traditional mutual funds and PMS / AIF strategies.
SIFs offer:
- The governance, transparency, and taxation framework of mutual funds, while
- Permitting long-short strategies typically seen in PMS / AIFs
SIFs are designed for investors seeking advanced strategies within a regulated structure.
Why Arudha Hybrid Long-Short Fund?
Arudha Hybrid Long Short Fund aims to provide a balanced profile of relative stabilityand low volatility, while being structured to potentially deliver superior risk-adjusted post-tax returns.
#1 Stability-First Portfolio Construction*
Debt Allocation (Up to 65%)
- Investments in Short- Medium Term Debt and Money Market Instruments
- Target duration range:1 to 4 years
- Exposure to AA+/AA rated instruments ~10% of overall portfolio (Rest of the debt portion- SOV/AAA equivalent)
Equity Allocation (Minimum 35%)
- Fully hedged equity exposure, no directional calls
- Market-neutral strategy
- Capturing opportunities arising from pricing or spread discrepancies across markets
* The aforesaid details indicates the tentative portfolio construct of the strategy post the launch of the same. The portfolio positioning would be based on prevailing market conditions and would be subject to changes depending on the fund managers views.
#2 Tax-Efficient Structure*
The investment philosophy is designed to potentially deliver better post-tax returns compared to standalone arbitrage fund and traditional debt fund.
| 1 Year Rolling Return |
Nifty Corporate Bond Index A-II |
Nifty 50 Arbitrage Index |
60% Nifty Corporate Bond Index A-II and ~40% Nifty 50 Arbitrage Index@ |
|---|---|---|---|
| Average | 7.72% | 6.32% | 7.16% |
| Min | 1.93% | 1.53% | 2.64% |
| Max | 12.19% | 9.43% | 10.87% |
| Volatility | 2.32% | 1.88% | 1.89% |
| 1 Year Rolling Return |
Nifty Corporate Bond Index A-II |
Nifty 50 Arbitrage Index |
60% Nifty Corporate Bond Index A-II and ~40% Nifty 50 Arbitrage Index@ |
|---|---|---|---|
| Average | 5.41% | 5.53% | 6.26% |
| Min | 1.35% | 1.34% | 2.31% |
| Max | 8.53% | 8.25% | 9.51% |
| Volatility | 2.32% | 1.88% | 1.89% |
*For illustrative purpose, tax treatment applicable to Debt and Arbitrage Funds are considered.
Nifty 50 Arbitrage Index : STGC (=<12 months)- 20% and LTCG (>12 months) - 12.50%
Nifty Corporate Bond Index A-II: Slab Rate 60%
Nifty Corporate Bond Index A-II and ~40%
Nifty 50 Arbitrage Index: STGC (=<12 months)- Slab rate and LTCG (>12 months) - 12.50%
Source: MFI, Bandhan MF. Data based on daily rolling returns from 1st April 2011– 28th November 2025. @The data is based on simulation using the back-tested data and is for
illustration purposes only. The same is not to be construed as return guidance in any manner whatsoever. Returns are CAGR. It should not be construed as investment advice to any party
or a promise on minimum returns and safeguard of capital. Past performance may or may not be sustained in the future and is not a guarantee of any future returns. Investors are
requested to take professional advice while making investment decisions
#3 Diversified, Low- Correlation Return Drivers
- The blend of debt yields and equity arbitrage spreads offers independent return streams.
- It aims to enhance risk-adjusted outcomes
Where Does This Strategy Fit?
| Particulars / Category of Funds | Debt Mutual Funds@ | Arbitrage Mutual Funds@ | Arudha Hybrid Long-Short Strategy |
|---|---|---|---|
| Portfolio Construct | Limited to debt allocation only |
Hedged Equity allocation is
>65%*, residual portion being
invested in debt-oriented
instruments/mutual fund
schemes *under normal circumstances |
$Up to 65% of the corpus is invested in debt and money market instruments and minimum 35% in arbitrage opportunities |
| Potential Return Profile | Returns guided by YTM and duration | Returns close to repo/short term rates | Arbitrage + |
| Taxation | Slab Rate |
LTCG @12.50% (>12m holding
period) STCG: 20% (=<12m holding period) |
LTCG @12.50% (>12m holding
period) STCG: Slab rate (=<12m holding period) |
Source/Disclaimer - Please consult tax advisor for better understanding and taxation applicable to specific investments. Note: LTCG- Long term Capital Gain; STCG- Short Term Capital Gain $ The portfolio positioning would be based on prevailing market conditions and would be subject to changes depending on the fund managers views. For details on the strategy and asset allocation refer slide 15 and 16. @ - Based on the category of the mutual fund schemes as per section on Part IV - Para 2.6 of SEBI Master Circular dated June 27, 2024 for mutual funds.
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Fund Facts
Investment Strategy Name
Arudha Hybrid Long-Short Fund
NFO Period
09th January to 22nd January 2026
Benchmark
CRISIL Hybrid 85+15 Conservative Index
Type of Investment Strategy
Interval Strategy Daily subscription (only on business days) and Twice a week ( Monday & Thursday)* redemption *Note: If Monday / Thursday falls on non-business day, then the next business day’s NAV would be considered for transaction processing.)
Investment Objective
The investment objective of the strategy is to generate optimal returns by investing predominantly in equity and debt securities, including limited short exposure in equity and debt through derivatives.
However, there can be no assurance that the investment objective of the investment strategy will be
realized
Listing
NSE/BSE
Fund Managers
Mr. Kapil Kankonkar is associated with Bandhan AMC since June 2025 as a part of the equity fund management team. In his current role, he is responsible for equity investment function for the schemes of Bandhan Mutual Fund. Prior to joining the same, he was associated with Kotak Securities Limited from February 20, 2023 to June 07, 2025 and with JM Financial Services Limited from June 06, 2007 to February 18, 2023, where he was responsible for fund management of Arbitrage Funds.
Mr. Saha joined Bandhan AMC Limited on September 29, 2025 as a part of equity investment team. Prior to the same he was associated with Julius Baer Wealth Advisors (India) Pvt Limited from September 2023 to September 2025 where he was responsible for investment research and portfolio management activities for Category III AIF. Prior to that he was associated with Edelweiss Asset Management Limited from May, 2014 to August 2023, where he was responsible for investment research and portfolio management of Category III AIF.
Mr. Shah is associated with Bandhan AMC since August 2015 as part of the Fixed Income Team and will now be handling investments and fixed income and Overseas fund management.
Prior to joining the same, he was associated with:
• IDBI Asset Management Ltd. – Dealing in Fixed income (Jan. 2013 to Aug. 2015)
• India Bulls Asset Management Ltd. – Dealing in Fixed income (Jun.2011 to Dec.2012)
• Mata Securities - Relationship Manager, Wholesale Debt Market (Jun.2010 to Jun.2011)
• Twenty First Century - Relationship Manager, Wholesale Debt Market (Jan.2009 to May2010)
Mr. Debraj Lahiri joined Bandhan AMC on April 03, 2023 as Fund Manager and Vice President – Credit Research, Fixed Income. He was earlier associated with ICICI Prudential Asset Management Company Limited as Credit Analyst from February 2018 to March 2023 and with Invesco Asset Management India Private Limited from August 2013 to February 2018 as Credit Analyst and was responsible for Credit appraisal of entities belonging to diverse sectors for the purpose of investments by fixed income and hybrid funds. Prior to that, he was associated with CARE Ratings from September 2010 to August 2013 as Credit Rating Analyst and handled credit rating of corporates belonging to diverse sectors.
Product info
Arudha Hybrid Long-Short Fund
An interval investment strategy investing in equity and debt securities, including limited short exposure in equity and debt through derivatives
This product is suitable for investors who are seeking*:
- To generate short to medium term optimal returns.
- An Interval investment strategy investing predominantly in equity and debt securities, including limited short exposure in equity and debt through derivatives.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Index