What is the story about?
Bandhan Asset Management Company (AMC) has introduced its first strategy under the Specialised Investment Fund (SIF) framework with the launch of the Arudha Hybrid Long-Short Fund. The interval investment strategy marks the entry of Bandhan AMC into the SIF segment through its Arudha platform.
According to the fund’s strategy document, the Arudha Hybrid Long-Short Fund plans to allocate between 35% and 65% each to debt and money market instruments and to equity instruments. The equity exposure will remain fully hedged and market-neutral, while the strategy may also take unhedged derivative exposure of up to 25%. The structure aims to balance accrual-oriented income with arbitrage opportunities, without taking directional equity market exposure.
The debt portion of the portfolio will focus on short- to medium-term instruments with an active duration range of one to four years. Exposure to AA+/AA-rated instruments will be capped at 10% of the overall portfolio, with the remainder invested in AAA-rated or sovereign securities. Bandhan AMC stated that this approach seeks to provide stability, liquidity, and accrual income.
On the equity side, the strategy will maintain a minimum allocation of 35% to fully hedged positions. The market-neutral equity component will seek to capture pricing inefficiencies and arbitrage spreads, rather than relying on broader market movements.
Vishal Kapoor, CEO of Bandhan AMC Limited, said the strategy is designed for investors such as high net-worth individuals, institutional investors, and family offices who are seeking structured investment solutions within the SIF framework. He added that the fund combines debt investments with equity arbitrage within a single strategy.
Units of the Arudha Hybrid Long-Short Fund will be listed on the NSE and BSE after allotment, enabling secondary market access for investors.
The launch positions Bandhan AMC among asset managers expanding offerings beyond traditional mutual funds into the specialized investment fund space, which targets investors looking for differentiated strategies within a regulated structure.
According to the fund’s strategy document, the Arudha Hybrid Long-Short Fund plans to allocate between 35% and 65% each to debt and money market instruments and to equity instruments. The equity exposure will remain fully hedged and market-neutral, while the strategy may also take unhedged derivative exposure of up to 25%. The structure aims to balance accrual-oriented income with arbitrage opportunities, without taking directional equity market exposure.
The debt portion of the portfolio will focus on short- to medium-term instruments with an active duration range of one to four years. Exposure to AA+/AA-rated instruments will be capped at 10% of the overall portfolio, with the remainder invested in AAA-rated or sovereign securities. Bandhan AMC stated that this approach seeks to provide stability, liquidity, and accrual income.
On the equity side, the strategy will maintain a minimum allocation of 35% to fully hedged positions. The market-neutral equity component will seek to capture pricing inefficiencies and arbitrage spreads, rather than relying on broader market movements.
Vishal Kapoor, CEO of Bandhan AMC Limited, said the strategy is designed for investors such as high net-worth individuals, institutional investors, and family offices who are seeking structured investment solutions within the SIF framework. He added that the fund combines debt investments with equity arbitrage within a single strategy.
Units of the Arudha Hybrid Long-Short Fund will be listed on the NSE and BSE after allotment, enabling secondary market access for investors.
The launch positions Bandhan AMC among asset managers expanding offerings beyond traditional mutual funds into the specialized investment fund space, which targets investors looking for differentiated strategies within a regulated structure.
