Long-Short SIFs
An equity fund with brakes. It will not top the charts in a strong bull run, because the hedges cost some upside. It is built to fall far less when markets drop.
By Yash Jhaveri, Founder & CEO, Beyond
Beyond · JSL Wealth Management · Vadodara · ARN XXXXX
Last reviewed September 2026 · Regulatory position as at September 2026
What it actually is
Specified Investment Funds, SEBI's newest category, live since 2025. They can go long the stocks they like and short the ones they do not. The aim is equity-like returns with much smaller falls. Hedge-fund technique, mutual-fund rules and tax, ₹10 lakh entry.
The job it does
- Staying in equity without full drawdown exposure
- A smoother ride for a first move beyond mutual funds
- Returns less dependent on markets only rising
Why people use it
- Downside management is built into the mandate, not left to timing
- MF-style tax and disclosure — far kinder than Cat III fund-level tax
- ₹10 L entry vs ₹1 Cr for a comparable AIF strategy
What can go wrong
- Hedging costs drag returns in strong bull runs
- Short track records — the category is young
- Manager skill matters far more than in index-hugging funds
Does Long-Short SIFs belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
Market Neutral Funds
Debt++, Equity Engine
Cat II AIFPrivate Credit & Real Estate Debt
High-Yield Cashflow
Education, not advice. We may earn referral fees when you invest through us. Full disclosures