Specialised Investment Funds (SIFs) have grown fast, with total assets of Rs 23,177.31 crore as of 31 July 2026. Seventy‑one percent of that, Rs 16,523.65 crore, is in what AMFI calls Hybrid Investment Strategies.
Almost all hybrid money is in one sub‑category: Hybrid Long‑Short. Eleven schemes hold Rs 15,373.69 crore across about 41,612 folios. The other hybrid sub‑category, Active Asset Allocator Long‑Short, manages only Rs 1,150 crore in three schemes.
By scheme count, equity‑oriented strategies have more live schemes (16) than both hybrid categories combined (14). Yet equity AUM is only Rs 6,653.66 crore, so hybrids still lead the AUM chart.
The four funds we examine – qsif Hybrid Long‑Short (Quant Mutual Fund), iSIF Hybrid Long‑Short (ICICI Prudential), Arudha Hybrid Long‑Short (Bandhan Mutual Fund) and Altiva Hybrid Long‑Short (Edelweiss) – together manage about Rs 7,000 crore, with Altiva the biggest.
All four follow the same SEBI rule: at least 25% equity, at least 25% debt, and up to 25% of net assets can be unhedged shorts through derivatives.
qsif uses its short allowance for six stock futures: four outright shorts (Bajaj Finance, Cipla, Eicher Motors, Biocon), one hedge (–8.59% short in Adani Energy against an 8.58% long in the same stock) and one long bet (UPL). Net derivative exposure is –14.03% of NAV.
iSIF’s only index future is a +4.56% long in Nifty Bank, a bet on rising markets. It also holds a –8.20% net short via stock call options and scattered stock‑level futures shorts, giving a net derivative exposure of –1.36% of NAV.
Arudha spends its entire short allowance on hedging: a 38.29% long equity book is offset by a –38.41% short futures book, leaving almost no net equity exposure.
Altiva takes a different route: 37% of the portfolio, mainly in derivatives, is cash‑future arbitrage and covered call, designed to capture a spread rather than a directional bet.
Risk bands differ: iSIF sits at Level 5, its benchmark at Level 2. qsif is Level 3 with a benchmark at Level 2. Arudha and Altiva are both Level 1, below their benchmarks.
Altiva’s equity exposure is spread over 60+ names, none above 2.47%. Fixed income accounts for 40.74% (1.62‑year duration, 7.85% yield) and 4.10% in REITs/InvITs.
Arudha holds 30+ names, none above 1.63%, with 38.29% equity and 59.32% debt in corporate bonds and CDs.
qsif is less diversified: 11 stocks plus one REIT make up 39.36% of NAV. Adani Energy Solutions alone is 8.58%, and 10.26% is in InvITs. Roughly half the fund is debt, money‑market paper, cash and 26.98% in TREPS.
iSIF resembles a conventional equity fund: 66.24% gross equity across about 55 stocks, and 33.66% debt (2.48‑year duration, 6.79% yield). TVS Motor, its largest holding, is just 4.11% of NAV.
Although all four funds share the same SEBI framework, their actual strategies differ dramatically. Choosing the right hybrid long‑short fund depends on your risk appetite and investment goals.