HDFC Mutual Fund Introduces Hybrid Long-Short Fund Under New SIF Platform

HDFC Mutual Fund has entered the specialised investment fund (SIF) category with the launch of H-SIF. The fund house has introduced the H-SIF Hybrid Long-Short Fund as its first offering.  

The New Fund Offer (NFO) opened on November 13, 2026, and will close on November 27, 2026. The minimum investment is ₹10 lakh across SIF strategies at the PAN level. 

How Will the Fund Invest? 

The H-SIF Hybrid Long-Short Fund will invest in equity and debt securities, including limited short positions through derivatives. It follows an 'Arbitrage+' strategy, which will use interest income, arbitrage spreads, option premiums and opportunities arising from corporate events to generate returns. 

The main portfolio will comprise high-safety debt instruments, arbitrage positions, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Derivatives will be used for hedging, collecting option premiums and taking short positions of up to 25% of net assets. 

The fund will also consider opportunities linked to initial public offerings (IPOs), share buybacks, open offers and mergers. Its preferred investment period is more than 18 months. The strategy is designed to operate in flat, mildly rising and volatile markets. 

SIF Category Assets Increase  

The launch comes after a rise in assets managed by specialised investment funds. According to the Association of Mutual Funds in India (AMFI), the category's assets under management (AUM) increased from around ₹2,010 crore in October 2025 to ₹38,287 crore in September 2026. Hybrid long-short strategies account for the largest share. 

HDFC Mutual Fund cited market fluctuations as part of the current investment environment. The Nifty 50 recorded sharp corrections in March and September 2026, with September marking its steepest monthly decline since March. 

Minimum Investment, Redemption and Fund Managers 

Investors must maintain a minimum investment of ₹10 lakh across SIF strategies at the PAN level. Accredited investors can invest from ₹10,000, subject to applicable conditions. 

Subscriptions will be accepted daily, while redemptions will be available on Mondays and Wednesdays. Units redeemed or switched out within 90 days of allotment will attract an exit load of 0.5%. There will be no exit load after this period. 

Paul S Parampreet and Ihab Dalwai will manage equities, Anil Bamboli will handle debt investments and Gopal Agrawal will oversee overseas investments. The fund is proposed to be listed on the NSE and/or BSE. 

The fund house has disclosed that the strategy carries market and liquidity risks, including the possibility of loss of capital. 

Read More: NFO Alert: DSP Mutual Fund Launches DSP Fixed Maturity Plan Series 280-90 D! 

Conclusion 

The new fund will invest across equity, debt, arbitrage and corporate event opportunities. It also carries market, liquidity and capital loss risks associated with specialised investment strategies. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.