Upcoming NFO: Titanium Active Asset Allocator Long-Short Fund to Invest Across Equity, Debt, InvITs and Commodity Derivatives

Titanium Active Asset Allocator Long-Short Fund is a new investment strategy under Titanium SIF. It is an interval strategy that can invest across equity, debt, equity and debt derivatives, InvITs and commodity derivatives.  

It can also take limited short positions through permitted derivatives. The stated objective is medium- to long-term capital appreciation.  

Asset Allocation 

The strategy can allocate 35% to 100% of its investible funds to equity and equity-related instruments, although net equity exposure may fall to 0% depending on market conditions. 

Debt and money market instruments can account for 0% to 65%, while InvITs can account for up to 20% and commodity derivatives up to 30%. Unhedged short exposure through equity and debt derivatives is capped at 25%.  

Investment Approach 

The fund can use derivatives for hedging, arbitrage and short positions. Its equity allocation will be based on the outlook for equity markets, macroeconomic conditions, liquidity and technical factors.  

Stock selection will also consider sector conditions, market position, management track record, corporate governance and profit growth.  

The strategy may take long positions in stocks expected to rise and short positions in stocks expected to decline or underperform. It can also use derivatives to hedge the core portfolio when individual companies, sectors or broader market conditions face adverse developments.  

Commodity derivatives, including futures and options, may be used for gold, silver and other commodities permitted by SEBI.  

Benchmark and Trading Details 

The benchmark comprises 35% BSE 200 TRI, 50% CRISIL Short Term Bond Fund Index and 15% iCOMDEX Composite Index.  

Subscriptions are available on all business days, while redemptions are scheduled once a week on Monday. Units are proposed to be listed on BSE.  

Investment and Exit Conditions 

The minimum investment for a new investor is ₹10 lakh. Existing investors must maintain ₹10 lakh across Titanium SIF strategies. There is no lock-in period, and the strategy has a perpetual duration.  

A 1% exit load applies to redemptions or switch-outs within one month of allotment, while there is no exit load after one month.  

Read More: Kotak Mahindra Mutual Fund Files for Kotak Nifty Infrastructure Index Fund! 

Conclusion 

Titanium Active Asset Allocator Long-Short Fund is a new multi-asset strategy with exposure to equity, debt, commodities, InvITs and derivatives. It does not have a past performance track record. 

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.