Arudha Specialized Investment Funds (SIF), part of Bandhan Mutual Fund, has announced the launch of its maiden SIF strategy — Arudha Hybrid Long-Short Fund. The interval investment strategy is designed to deliver optimal risk-adjusted and post-tax returns through a structured combination of debt and market-neutral equity exposures.

The strategy proposes to allocate up to 65% of the portfolio to short- to medium-term debt and money market instruments, while maintaining a minimum 35% allocation to fully hedged, market-neutral equity positions. In addition, the fund has the flexibility to take unhedged derivative exposure of up to 25%, as permitted under the strategy framework.

Commenting on the launch, Vishal Kapoor, CEO, Bandhan AMC Limited, said, “Arudha Hybrid Long-Short Fund has been designed for sophisticated investors such as HNIs, institutional investors, and family offices who seek optimal returns with enhanced tax efficiency. The uniquely structured SIF format allows investors to access accrual income, select high-quality debt instruments, and equity arbitrage opportunities through a single, well-structured strategy.”

As per the strategy document, the debt allocation will be actively managed with a duration range of one to four years. Exposure to AA+/AA-rated instruments will be capped at 10% of the overall portfolio, with the remaining investments primarily in AAA-rated or sovereign securities, aiming to provide stability, liquidity, and steady accrual income.

On the equity side, the strategy will maintain a minimum 35% allocation to fully hedged positions, following a market-neutral approach. The equity component focuses on capturing pricing inefficiencies and arbitrage spreads rather than taking directional market exposure, thereby aiming to generate relatively low-risk accruals.

The units of the strategy will be listed on NSE and BSE post allotment, offering investors ease of access and liquidity.

The name Arudha signifies ascent and progress. Building on Bandhan AMC’s strong mutual fund platform, Arudha SIF represents the firm’s expansion into specialized investment strategies designed for sophisticated investors. The SIF platform aims to bridge the transition from traditional mutual funds to advanced investment solutions, supporting investors in their evolving wealth creation journey.