Kotak Mutual Fund has launched its first Specialised Investment Fund (SIF), the Kotak Infinity Hybrid Long-Short Fund. The NFO opens June 15 and closes June 29, offering a strategy that combines long-only equities, limited short exposure, and derivatives to manage risk and navigate market cycles.
The launch signifies Kotak Mutual Fund's expansion into specialized investment strategies and reflects the growing trend of mutual funds offering more flexible, risk-managed approaches beyond traditional long-only investing.
Kotak Mutual Fund has introduced its inaugural Specialised Investment Fund (SIF), the Kotak Infinity Hybrid Long-Short Fund, entering a new category established by SEBI. The new fund offer (NFO) is scheduled to open on June 15 and will close on June 29, with the scheme set to reopen for continuous sale and repurchase on or before July 9.
The fund's strategy is designed to navigate various market conditions by dynamically managing net equity exposure, with a strong emphasis on risk management and downside protection. It combines long-only investments with permitted short exposures and arbitrage opportunities, all within regulatory limits. This approach aims to participate in market upside while mitigating drawdowns during volatile periods.
Niles h Shah, Managing Director at Kotak Mahindra Asset Management Company, noted that SIFs represent an evolution for mutual funds, offering greater flexibility through long-short strategies to manage market cycles more effectively. He highlighted the fund's potential to provide a differentiated investment approach focused on disciplined portfolio construction and risk management.
The minimum investment required for this fund is Rs 10 lakh, with subsequent investments in multiples of Re 1. The fund will be benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index. The management team includes Hiten Shah and Kalpesh Jain for equity and overseas investments, and Abhishek Bisen for debt and money market investments.
Kalpesh Jain, Fund Manager – SIF at Kotak Mahindra Asset Management Company, stated that SIFs allow for more flexible portfolio construction while prioritizing risk management. The fund's objective is to invest across equities, arbitrage opportunities, and select derivative strategies, dynamically adjusting net equity exposure to capture market upside and reduce drawdowns.
This launch aligns with Kotak Mutual Fund's commitment to developing investment solutions that meet evolving investor needs. The fund is positioned as suitable for investors seeking long-term capital growth through an interval investment strategy that includes equity and debt securities with limited short exposure via derivatives. The principal invested is at risk level 2.