Mahindra Manulife Mutual Fund announced the launch of MSIF Equity Long-Short Fund, an open-ended equity investment strategy under its Specialized Investment Fund platform.

The new fund offer or NFO of the fund will open for subscription on September 30 and will close on October 14. The investment strategy will reopen for continuous sale and repurchase from October 26.

The MSIF Equity Long-Short Fund will invest predominantly in listed equity and equity-related instruments while selectively employing short positions through derivatives. The investment strategy aims to generate long-term capital appreciation by identifying opportunities across different market environments and seeking risk-adjusted returns across market cycles.

Also Read | All 36 smallcap mutual funds deliver double digit returns in 6 months. Should you invest more or book profits?

The strategy is designed around a flexible approach to equity investing, combining long positions with selective short exposure. This allows the investment team to assess opportunities across both rising and falling market environments, while maintaining defined parameters for portfolio construction and risk management.

The investment process combines macro analysis, fundamental stock selection and a structured risk management framework.

The investment approach uses a combination of top-down and bottom-up analysis. The macro assessment considers factors including interest rates and inflation, economic growth, liquidity, market flows and geopolitical risks, while stock selection incorporates fundamental research and quantitative inputs.

The risk management framework includes stock-level hedges, sector deviation limits, portfolio hedges, position limits and drawdown triggers.

On the short side, the strategy follows a research-driven framework that evaluates factors across policy and ownership, business and governance, and earnings and valuations. Short positions are considered based on identified catalysts and supporting evidence, rather than being taken solely on a directional view of the market.

"The launch of the MSIF Equity Long-Short Fund marks our entry into the Specialized Investment Fund space and reflects our commitment to offering differentiated investment solutions aligned with evolving investor needs. As markets become increasingly dynamic, investors are looking for strategies that can navigate opportunities across market cycles. This offering combines the flexibility of a long-short approach with the transparency, governance and discipline of the mutual fund framework,” said Anthony Heredia, MD & CEO, Mahindra Manulife Investment Management.

The fund will be managed by Abhishek Jaiswal and Aalap Shah. The MSIF Equity Long-Short Fund will offer regular and direct plans, with growth and income distribution cum capital withdrawal options.

The minimum application amount is Rs 10 lakh and in multiples of Re 1 thereafter, while the minimum application amount for accredited investors is Rs 1 lakh and in multiples of Re 1 thereafter. The strategy will be benchmarked against the Nifty 500 TRI.

Also Read | BSE cautions investors as international ETFs trade at steep premiums to NAV. What should investors do?

The investment strategy carries a Risk Band Level 5 classification. It is intended for investors seeking long-term capital appreciation through investments predominantly in listed equity and equity-related instruments, including limited short exposure in equity through derivatives.

"As Indian economy grows so does per capita income & investible surpluses for Indian investors. The sophisticated investors look for market opportunities beyond the traditional long-only approach as they seek to participate in newer asset class,” said Krishna Sanghavi, CIO - Equity, Mahindra Manulife Investment Management.

“The MSIF Equity Long-Short Fund aims to identify high-conviction long ideas while selectively taking short exposure where either the fundamentals or valuations appear less favourable. Backed by rigorous research and a disciplined risk management framework, the Investment Strategy seeks to generate risk-adjusted returns across varying market environments,” Sanghavi further said.

(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.