Mirae Asset Mutual Fund announces launch of hybrid long-short fund under Platinum SIF

Synopsis

Mirae Asset Mutual Fund has launched the Platinum Hybrid Long-Short Fund under its Platinum SIF platform. The interval investment strategy will invest across equity, debt and derivative instruments, aiming to deliver risk-adjusted returns through arbitrage, collar strategies and high-quality debt exposure across market cycles.

Mirae Asset Mutual Fund announced the launch of a hybrid long-short fund under Platinum SIF. Platinum Hybrid Long-Short Fund is an interval investment strategy investing in equity and debt securities, including limited short exposure in equity and debt through derivatives.

The new fund offer or NFO of the fund will open for subscription on May 20 and will close on June 3.

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Positioned to deliver risk-adjusted returns, the fund seeks to deliver returns across market phases. The fund will achieve stability through debt and arbitrage, yield enhancement through a collar strategy and special situations.

The Platinum Hybrid Long-Short Fund will be managed by Gaurik Shah and will be benchmarked against the Nifty 50 Hybrid Composite Debt 50:50 Index. The exit load of 1% will be applicable if redeemed within 90 days from the date of allotment, and the exit load will be nil if redeemed after 90 days from the date of allotment.

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The minimum application amount is Rs 10 lakh (in multiples of Rs 1,000 thereafter continuously). For SIP, the minimum amount is Rs 50,000 and in multiples of Re 1 thereafter, subject to the condition that the minimum investment amount by an investor should not be less than Rs 10 lakh.

“The SIF provides investors access to specialised strategies alongside the safety and transparency of mutual funds,” said Neelesh Surana, CIO, Mirae Asset Investment Managers (India). “The fund shall seek to provide higher flexibility in strategy and allocation across debt, equity and derivatives instruments.”

“Platinum Hybrid Long-Short Fund will have controlled equity exposure between 5-70% that includes a collar strategy and special situations, fully hedged exposure through arbitrage in the range of 5-70% and high-quality accrual debt exposure in the range of 25-35%,” said Gaurik Shah, SVP – Equity Investments, Mirae Asset Investment Managers (India).

“The three-tiered structure not just makes it agile but also provides relatively lower drawdowns vs hybrid funds with unhedged directional equity exposure,” Shah further said.

The fund is suitable for conservative investors seeking relatively stable returns across market phases and investing with a time horizon of 1 to 2 years or more. The fund is also for investors seeking better downside protection vs hybrid funds with directional equity exposure.

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“Platinum SIF is being launched with a purpose to fill a gap between retail investors and high-net-worth investors. The first fund, Platinum Hybrid Long-Short Fund, is positioned to fill the product gap of generating fixed income-like returns in a tax efficient. SEBI safeguards allow SIFs to use derivatives smartly, helping fund houses manage risk better and offer innovative products,” said Vaibhav Shah, Head - Products, Business Strategy and International Business, Mirae Asset Investment Managers (India).

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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