NFO Alert: Edelweiss Mutual Fund's Altiva SIF launches equity long-short fund
Edelweiss Mutual Fund’s Altiva SIF today announced the launch of the Altiva Equity Long-Short Fund. This open-ended Equity Long-Short investment strategy seeks to generate long-term capital appreciation by predominantly investing in listed equity and equity-related instruments.
The new fund offer or NFO of the fund is open for subscription and will close on September 24. The minimum application amount is Rs 10 lakh.
“Altiva SIF has received overwhelming love from investors and partners, and we are truly humbled by the trust placed in the platform. With its first two funds crossing ₹11,000 crore in AUM in less than a year, Altiva has emerged as one of the largest SIF platforms, built on strong consumer trust and a clear focus on solving unique investor problems,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.
Also Read | Edelweiss MF’s Altiva Equity Long Short Fund to launch September 10; Bhavesh Jain explains largecap strategy
“Our earlier strategies, including the Altiva Hybrid Long Short Fund and Altiva Equity Ex Top 100 Long Short Fund, were designed to address distinct needs across Arbitrage+ and Mid Cap+. With this new launch of the Altiva Equity Long-Short Fund, we are now extending this approach to the Large Cap+ space, aiming to solve the challenge of inconsistent alpha in large caps through derivatives income over a core large-cap-oriented portfolio,” Gupta said.
The Altiva Equity Long-Short Fund is positioned as a large cap+ strategy, combining a large-cap-oriented equity portfolio with an income-oriented derivatives overlay. The strategy aims to offer investors market participation with the potential for incremental returns across market cycles.
The investment strategy will have an indicative long-term market cap allocation of approximately 80% to largecap stocks and 20% to mid- and smallcap stocks. It may use derivative strategies, such as covered calls, straddles, and strangles, among other permitted strategies, to seek additional sources of return.
The derivatives overlay does not imply assured or regular income, and its contribution will depend on prevailing market conditions.
The investment strategy is benchmarked against the Nifty 100 TRI. The equity portfolio will be managed by Bharat Lahoti and Bhavesh Jain, while Amit Vora will serve as the overseas fund Manager.
The fund may be suitable for investors seeking a core equity allocation, the potential for returns above conventional large-cap exposure and an investment horizon of three to five years. It may not be suitable for investors seeking pure index-tracking exposure, short-term returns or an investment horizon of less than three years.
The strategy offers daily subscriptions and redemptions and will be available under Direct and Regular Plans, with Growth and IDCW options. An exit load of 0.50% will apply if units are redeemed or switched out on or before 90 days from the date of allotment. No exit load will apply thereafter.
Also Read | SIFs attract Rs 22,328 crore since launch. Should mutual fund investors use them as satellite allocation?
Existing Altiva SIF investors who have already fulfilled the applicable Rs 10 lakh minimum investment threshold may invest Rs 1,000 and in multiples of Re 1 thereafter, subject to the terms specified in the final offer documents.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message ET Mutual Funds on Facebook/Twitter. We will get them answered by our panel of experts. Do share your questions at ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.
The new fund offer or NFO of the fund is open for subscription and will close on September 24. The minimum application amount is Rs 10 lakh.
“Altiva SIF has received overwhelming love from investors and partners, and we are truly humbled by the trust placed in the platform. With its first two funds crossing ₹11,000 crore in AUM in less than a year, Altiva has emerged as one of the largest SIF platforms, built on strong consumer trust and a clear focus on solving unique investor problems,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.
Also Read | Edelweiss MF’s Altiva Equity Long Short Fund to launch September 10; Bhavesh Jain explains largecap strategy
“Our earlier strategies, including the Altiva Hybrid Long Short Fund and Altiva Equity Ex Top 100 Long Short Fund, were designed to address distinct needs across Arbitrage+ and Mid Cap+. With this new launch of the Altiva Equity Long-Short Fund, we are now extending this approach to the Large Cap+ space, aiming to solve the challenge of inconsistent alpha in large caps through derivatives income over a core large-cap-oriented portfolio,” Gupta said.
The Altiva Equity Long-Short Fund is positioned as a large cap+ strategy, combining a large-cap-oriented equity portfolio with an income-oriented derivatives overlay. The strategy aims to offer investors market participation with the potential for incremental returns across market cycles.
The investment strategy will have an indicative long-term market cap allocation of approximately 80% to largecap stocks and 20% to mid- and smallcap stocks. It may use derivative strategies, such as covered calls, straddles, and strangles, among other permitted strategies, to seek additional sources of return.
The derivatives overlay does not imply assured or regular income, and its contribution will depend on prevailing market conditions.
The investment strategy is benchmarked against the Nifty 100 TRI. The equity portfolio will be managed by Bharat Lahoti and Bhavesh Jain, while Amit Vora will serve as the overseas fund Manager.
The fund may be suitable for investors seeking a core equity allocation, the potential for returns above conventional large-cap exposure and an investment horizon of three to five years. It may not be suitable for investors seeking pure index-tracking exposure, short-term returns or an investment horizon of less than three years.
The strategy offers daily subscriptions and redemptions and will be available under Direct and Regular Plans, with Growth and IDCW options. An exit load of 0.50% will apply if units are redeemed or switched out on or before 90 days from the date of allotment. No exit load will apply thereafter.
Also Read | SIFs attract Rs 22,328 crore since launch. Should mutual fund investors use them as satellite allocation?
Existing Altiva SIF investors who have already fulfilled the applicable Rs 10 lakh minimum investment threshold may invest Rs 1,000 and in multiples of Re 1 thereafter, subject to the terms specified in the final offer documents.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message ET Mutual Funds on Facebook/Twitter. We will get them answered by our panel of experts. Do share your questions at ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.
Next Story