Indian fund managers line up long-short equity funds for wealthy
asset
managers plan to launch higher-risk,
long-short equity funds
to wealthier investors after the regulator approved the strategy earlier this year, according to executives at these firms and public filings.
The new category of investment funds were first announced last year as a way to offer sophisticated investors a wider range of options.
Under the new rules, which kicked in on April 1,
Indian mutual funds
can now offer long-short
equity
funds - where fund managers take both long- and short-positions - under a new category called "Specialised Investment Fund" (SIF) with a minimum investment size of 1 million rupees ($11,663.51).
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Cardiologist Reveals: The Simple Morning Habit for a Flatter Belly After 50!
Lulutox
Undo
ICICI Prudential Mutual Fund, Quant Mutual Fund, SBI
Mutual fund
and ITI Mutual Fund are already approved to launch the product, according to public disclosures and spokespeople of these firms.
The CEOs of Edelweiss Mutual Fund and Mirae Asset Investment Managers, a unit of South Korea's Mirae Asset Financial Group, are awaiting approval to launch a hybrid long-short fund and an equity long-short fund respectively, they confirmed to Reuters. Nippon India mutual fund is awaiting approval to launch a long-short fund.
Live Events
"We see a lot of potential in this category similar to what we have seen in alternative investment funds who have been able to amass assets with these long-short strategies," said Jatinder Pal Singh, CEO of ITI Mutual Fund.
India's 48 asset managers manage 72.20 trillion rupees in assets.
Hedge
funds and quant firms such as AlphaGrep Investment Management, Abakkus Asset Management, Carnelian Capital, and Ask Investment Managers have applied for mutual fund licences, a prerequisite for launching SIFs, executives at these firms said, declining to be named.
The funds did not respond to Reuters emails seeking details.
SIFs allow fund managers more independence to structure their funds, said Ashish Gupta, chief investment officer at Axis Mutual Fund, also awaiting regulatory approval to launch SIFs.
INSTITUTIONAL PARTICIPATION IN DERIVATIVES
These funds are also permitted to trade derivatives and could help increase institutional participation in the derivatives market, where the regulator is seeking to widen the investor base and reduce speculation.
"Potentially this could help in reducing the speculative nature of options trading but would depend on strategies being rolled out and how much assets they get," Gupta said.
Global trading firms have increased their presence in India's growing derivatives market in the last year, but institutional participation from Indian funds is limited.
Proprietary traders made up 52.3% of total derivatives traders as of April, with retail at 33.6%, while domestic institutions - which include mutual funds - made up only 0.2% of total derivative traders, NSE data showed.
($1 = 85.5450 Indian rupees)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
7 minutes ago
- Business Standard
Will explore more, no compromise on farmers' interests: Shivraj on tariffs
Union Agriculture Minister Shivraj Singh Chouhan on Tuesday lauded Prime Minister Narendra Modi for his determination to protect the interests of farmers in the wake of tariff pressures and said it has been decided that there will be no compromise with the interests of the farming community. Speaking at an event in Subrahmanyam Hall in New Delhi, Chouhan emphasised that India's population is its strength and the country will also find new markets. In a veiled reference to the United States imposing 50 per cent tariff on India and apparent pressure in trade talks for greater access to India's agriculture and dairy sectors, Chouhan said there is vast difference in the size of landholdings and agricultural practices and cost of production in the two countries. "The whole country was apprehensive, know how much land they hold: 10,000 hectares, 15,000 hectares. Meanwhile, our farmers have land ranging from one acre to three acres, with many having just half an acre. We have a little land. Is this competition fair? You use GM seeds. There are different kinds of perceptions about our GM. The whole country was apprehensive, what will happen? They want their soybean to come here, their wheat, maize, rice," the Agriculture Minister said. "The cost of production per hectare is less there because GM seeds and other things are used, so the yield is more and the cost is less. The cost of production per hectare here is much higher than there, and if it had come openly, the prices of the crops here would have fallen further in our country. Where would the farmer go? Therefore, it was decided that no matter what happens, there will be no compromise with the interests of the farmer," he added. Chouhan referred to PM Modi's remarks that no matter how much loss he personally incurs, there will be no compromise with interests of farmers. "Prime Minister Narendra Modi said recently that no matter how much loss I personally incur, but the interests of farmers will not be compromised. This is the voice of India, voice of brothers, be assured. If there is some difficutly, we will see. We will find new markets, and India itself is such a big market that our things will be consumed here. The population of the whole of Europe is 50 crore, America's is 30 crore, our population of 144 crore is not our weakness; it is our strength. That is why this decision was taken. It is also testing time, we don't have budge, bow..." Chouhan said. US imposed 25 per cent reciprocal tariffs on Indian goods last month and increased it to 50 per cent over import of Russian oil. Chouhan also spoke of the government's determination to provide more resources to agriculture. Chouhan also dismissed nuclear sabre-rattling by Pakistan Army Chief Asim Munir and said India has decided to put the Indus Waters Treaty in abeyance after the Pahalgam terror attack. "Today, as a farmer, I want to congratulate our Prime Minister Narendra Modi, I want to thank him. The first thing is the Indus Water Treaty. Now the neighbour is giving threats from America. India is not going to be afraid of any threat. The whole world should hear that the Indus Treaty has been cancelled, and our water will be used for the farmers. This is Modi ji's decision. Such an unjust treaty, the rivers, land, water are ours and the canal will be built in Pakistan. We gave 80% of the water, and Nehru ji also gave money to build the canal there; this was a sin. Now this will not be allowed at any cost; our water will be used for our own purposes," Chouhan said. Referring to Pakistan's support for cross-border terrorism against India, Chouhan said PM Modi has made it clear that "blood and water cannot flow together". He said the government would soon bring in a new law to take strict action against those producing fake fertilisers and chemicals. He said various schemes for farmers' welfare are being advanced on priority and digital payment of insurance amounts was made to farmers on Monday from Jhunjhunu in Rajasthan under the Pradhan Mantri Fasal Bima Yojana. The Union Minister highlighted PM Modi's 'Nation First' resolve and emphasized that the Prime Minister has always taken strong, bold, nation-centric decisions, for which the country will forever remain indebted.
Mint
7 minutes ago
- Mint
Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 13 August 2025
Breakout stocks buy or sell: Indian benchmarks ended lower on Tuesday, mirroring weakness across Asian markets, as investors awaited India's July inflation figures and the US inflation report, both seen as key factors that could sway market sentiment. At the close, the BSE Sensex fell 368.49 points, or 0.46 per cent, to 80,235.59, while the NSE Nifty 50 declined 97.65 points, or 0.40 per cent, to settle at 24,487.40. The broader market reflected a cautious mood, with the Nifty Midcap 100 slipping 0.27 per cent, while the Nifty Smallcap 100 finished unchanged, suggesting minimal activity outside the large-cap segment. Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market is trading in a broader range of 24,300 to 24,650. Speaking on the outlook of Indian stock market, Bagadia said, ' Bullish or bearish trend can be assumed on the breakage of either side of this range. So, one should maintain stock-specific approach and look at those stocks that are looking strong on the technical chart. Looking at breakout stocks can be a good option." Sumeet Bagadia recommends five breakout stocks to buy today: Tbo Tek, Wockhardt, Hubtown, Acme Solar Holdings, and Diffusion Engineers. 1] Tbo Tek: Buy at ₹ 1445.4, target ₹ 1550, stop loss ₹ 1394; 2] Wockhardt: Buy at ₹ 1515.6, target ₹ 1622, stop loss ₹ 1462; 3] Hubtown: Buy at ₹ 348.85, target ₹ 375, stop loss ₹ 336; 4] Acme Solar Holdings: Buy at ₹ 285.9, target ₹ 306, stop loss ₹ 275; 5] Diffusion Engineers: Buy at ₹ 339.45, target ₹ 365, stop loss ₹ 327. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
7 minutes ago
- Mint
Banks drag Australian shares lower, CBA tumbles nearly 5%
Aug 13 (Reuters) - Australian shares fell on Wednesday from a record close scaled in the previous session, as Commonwealth Bank of Australia led index heavyweight financials lower on concerns about its bottom line. The S&P/ASX 200 index slipped 0.4% to 8,850.10 by 0059 GMT. The benchmark index rose 0.4% to a record close of 8,880.80 on Tuesday, after the Reserve Bank of Australia reduced interest rates by 25 basis points, as widely anticipated, while signalling further policy easing could be on the cards. Top lender Commonwealth Bank of Australia declined nearly 5% on Wednesday, hitting its lowest level since mid-May and pulling the banking sub-index 1.8% lower to its weakest point since August 5. CBA, considered one of the most expensive banks in the world on a price-to-earnings ratio, reported a record annual profit, but analysts said its bottom line was boosted by a lift in trading income which can be volatile. National Australia Bank and Westpac slipped 1.6% and 1.3%, respectively. Miners climbed 0.9% after iron ore futures closed higher overnight as steel mills in Chinese production hub Tangshan were ordered to halt operations. Mining giants BHP, Rio Tinto and Fortescue gained between 1% and 1.3%. Tech stocks rose 0.8%, tracking gains in their U.S. peers, while gold stocks advanced 0.6% after a U.S. inflation report raised hopes for a Federal Reserve interest rate cut in September. Among individual stocks, Treasury Wine Estates rose 5.6% and Insurance Australia Group climbed 1.8% on higher annual profits. AGL Energy was the weakest performer on the benchmark index with a 12.3% drop, after the power producer posted a 21% drop in annual underlying earnings, missing market estimates. In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 12,840.70. (Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)
