Tata Mutual Fund Files Draft with SEBI for Hybrid Long-Short SIF

Tata Mutual Fund has filed a draft document with the Securities and Exchange Board of India (SEBI) for a new fund under the Special Investment Fund (SIF) category. The proposed scheme is named the Titanium Hybrid Long-Short Fund. 

It is an interval fund that will invest in equity and debt securities and take limited short positions through derivatives.

Fund Objective

The stated objective of the scheme is to generate medium to long-term capital appreciation. This will be pursued through investments in equity and equity-related instruments, debt, and money market instruments. The scheme may also use derivatives both for hedging and for short exposure.

Benchmark and Managers

The performance of the Titanium Hybrid Long-Short Fund will be benchmarked against the CRISIL Hybrid 50+50 – Moderate Index (TRI). The fund will be managed by Suraj Nanda, Amit Somani, and Hasmukh Devji Vishariya.

Investment Allocation

The draft proposes an allocation of 65-75% to equity and related instruments. Debt and money market instruments, including fixed income derivatives, will account for 25-35%. A further 0-10% may be invested in units issued by REITs and InviTs.

Subscription and Redemption

Investors will be able to subscribe to the scheme on a daily basis. Redemption will be available once a month, on the first working day. Units of the fund will also be listed on the BSE, providing an additional exit option.

Minimum Investment and Exit Load

During the New Fund Offer (NFO), the minimum application amount is ₹10 lakh. At the PAN level, the aggregate minimum investment across all strategies under Titanium SIF will also be ₹10 lakh. An exit load of 1% will apply if redemption or switch-out occurs within one year of allotment. After one year, no exit load will be charged.

Read More: Bajaj Finserv Banking and Financial Services Fund Filed Draft With SEBI!

Strategy

The fund will invest across companies of different market capitalisations. Selection criteria will include management quality, business track record, industry conditions, growth outlook, and liquidity. Derivatives will be used to manage volatility, protect downside risk, and capture arbitrage opportunities.

Conclusion

The filing places Tata Mutual Fund’s Titanium Hybrid Long-Short Fund under review with SEBI, outlining its structure, objectives, and operating terms.

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.