Edelweiss MF to expand Altiva platform with second SIF equity offering

Edelweiss Mutual Fund launches Altiva Equity Ex Top 100 Long Short Fund, a mid and small cap focused SIF open May 18 to June 1, targeting SMID opportunities amid valuation correction.

By Anshul

Edelweiss Mutual Fund has announced the launch of its second strategy under the Altiva platform, introducing an equity-focused specialised investment fund (SIF) aimed at companies beyond the top 100 by market capitalisation.

The new fund offer, Altiva Equity Ex-Top 100 Long-Short Fund, will open for subscription from May 18 to June 1. The launch marks an expansion of the fund house’s SIF offerings into equity strategies, following its initial products under the platform.

The strategy is designed to invest primarily in mid- and small-cap (SMID) stocks, reflecting a broader shift in market dynamics where these segments have seen stronger expansion in recent years. Data cited by the fund house indicates that certain small-cap segments have grown significantly faster than large caps between December 2020 and December 2025.

The move also comes amid increasing investor focus on emerging sectors such as data centres, fintech, e-commerce and renewable energy—areas that are more widely represented within the SMID universe than among large-cap companies.

Market participants note that the SMID segment offers a wider investment universe with relatively lower analyst coverage, which may create opportunities for active stock selection. At the same time, companies in this segment have reported stronger earnings growth in recent years, alongside improvements in balance sheets.

Institutional participation in mid- and small-cap stocks has also increased gradually, supported by improved liquidity and market depth, according to industry data.

The timing of the launch coincides with a correction in SMID valuations, with a substantial number of stocks trading below their recent highs. This moderation in valuations is seen by some as improving the risk-reward balance for investors.

The fund will follow a relatively concentrated approach, holding around 35–45 stocks with a predominant allocation to SMIDs, while retaining flexibility to use derivatives for hedging and portfolio efficiency.

While the strategy seeks to capture opportunities beyond large-cap companies, it remains subject to market risks and volatility typically associated with mid- and small-cap investing.

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