Edelweiss Mutual Fund launches long-short fund targeting large-cap stocks

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Edelweiss Mutual Fund's Altiva SIF platform has announced the launch of a new fund called the Altiva Equity Long-Short Fund. The fund is open-ended and aims to achieve long-term capital growth by investing in listed equity and equity-related instruments. The new fund offer (NFO) will open on September 10, 2026, and close on September 24, 2026. The minimum application amount has been set at Rs 10 lakh.

At the launch, Edelweiss Mutual Fund MD and CEO Radhika Gupta said Altiva SIF has received a good response from investors and partners, and expressed gratitude for the trust placed in the platform. She said the company's first two funds crossed an AUM of Rs 11,000 crore in under a year, making Altiva one of the largest SIF platforms. She said the platform was built keeping investor trust and specific investor needs in mind.

Gupta said the company had earlier launched two strategies, the Altiva Hybrid Long Short Fund and the Altiva Equity Ex Top 100 Long Short Fund, built for Arbitrage+ and Mid Cap+ needs respectively. She said that with the new Altiva Equity Long-Short Fund, the company is extending this approach to the Large Cap+ segment. She said the fund seeks to address the problem of volatile alpha in large-cap stocks through income generated from derivatives layered over a large-cap focused core portfolio.

The Altiva Equity Long-Short Fund has been positioned as a Large Cap+ strategy, adding an income-focused derivatives layer on top of a large-cap focused equity portfolio. The strategy aims to give investors market participation while offering the possibility of additional returns across market cycles. Based on long-term market capitalisation, about 80 percent will be allocated to large-cap stocks and 20 percent to mid and small-cap stocks.

The fund will seek an additional source of returns through permitted derivative strategies such as covered calls, straddles and strangles. However, this additional derivatives layer does not guarantee fixed or regular income, and its contribution will depend on prevailing market conditions at the time. The Nifty 100 TRI will serve as the benchmark for this strategy. The equity portfolio will be managed by Bharat Lahoti and Bhavesh Jain, with Amit Vora as Overseas Fund Manager.

The fund has been described as suitable for investors seeking core equity investment, expecting higher returns than traditional large-cap investing, and with an investment horizon of three to five years. It is not suitable for those seeking pure index-tracking investment, short-term returns, or an investment horizon of less than three years.

The strategy will allow daily investment and redemption. The fund will be available under Direct and Regular Plans, with Growth and IDCW options. An exit load of 0.50 percent will apply if units are sold or switched within or on the 90th day from the date of allotment, with no exit load after that. Existing Altiva SIF investors who have already met the Rs 10 lakh minimum investment threshold can invest in multiples of Rs 1,000 and thereafter in multiples of Re 1, as per the terms in the final offer documents.

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