Upcoming NFO: Union Mutual Fund Filed Draft for Arthaya Equity Long Short Fund Via SIF

Arthaya SIF has filed draft documents for the Arthaya Equity Long Short Fund, an open-ended equity strategy under Union Mutual Fund. The fund will invest in listed equities and related instruments, while taking limited short exposure through derivatives.  

The stated objective is to generate long-term capital appreciation over the investment cycle. The strategy has been classified under “High-Risk" category, with the NIFTY 200 Total Return Index (TRI) set as its benchmark.  

Portfolio Allocation and Strategy 

Under normal conditions, the fund will allocate 80-100% of its assets to equities and equity-related instruments. Up to 20% may be deployed in debt and money market instruments, along with limited exposure to InvITs and overseas securities.  

Short exposure through derivatives is capped at 25% of the portfolio. The strategy may also use futures and options for hedging, rebalancing, or directional positioning depending on market conditions.  

The approach allows flexibility across market capitalisation segments and investment styles, with portfolio positioning adjusted based on prevailing market conditions.  

Investment Terms and Pricing 

Units will be offered at a face value of ₹10 during the New Fund Offer (NFO), with ongoing subscriptions and redemptions available at NAV-based prices on all business days.  

The minimum investment amount is ₹10 lakh, with systematic investment and withdrawal facilities available subject to conditions. An exit load of 1% applies for redemptions within 1 year, after which no exit load is charged.  

NAV will be disclosed daily, and redemption proceeds are expected to be processed within 3 working days under normal circumstances.  

Risk and Disclosures 

The document notes that the strategy involves higher risk, including market volatility, liquidity constraints, and potential loss of capital.  

As a new offering, the fund does not have a performance track record. Deployment of funds collected during the offer period is expected within 30 business days from allotment.  

Read More: NFO Alert: Zerodha Mutual Fund Launches Nifty LargeMidcap250 Plus 8-13 Yr G-Sec 70:30 Index Fund! 

Conclusion 

The draft outlines an equity-focused long-short strategy with defined exposure limits, daily liquidity, and no prior performance history at the time of filing. 

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.