Stories
SIF Hybrid Long-Short Funds Show Resilience Amid Market Volatility
- •Hybrid long-short funds delivered an average return of 0.71 percent in September, outperforming broader equity markets during a volatile month.
- •qSIF Hybrid led the category with an exceptional 16.91 percent gain, significantly pulling up the overall category average.
- •Only 5 out of the 11 funds in the category posted positive returns, highlighting a wide dispersion in fund performance.
- •Experts emphasize that manager selection is critical due to the vast performance gap between the strongest and weakest strategies in the category.
Key Questions Answered
Hybrid long-short funds showed resilience in September with an average return of 0.71 percent, while broad equity markets faced sharp declines. Out of 11 funds, 5 posted positive gains, with qSIF Hybrid leading the category by jumping 16.91 percent.
Hybrid long-short funds are multi-asset investment strategies offered under SEBI's Specialized Investment Fund framework. They combine equity, debt, arbitrage, and derivatives by investing at least 25 percent each in equity and debt, alongside up to 25 percent exposure to short positions.
Assets under management in Specialized Investment Funds surged by 528.06 percent over an eight-month period, rising from Rs 4,928 crore in January 2026 to Rs 31,175 crore in August. Hybrid strategies accounted for 60 percent of the net inflows during this period.
