NFO Alert: Union Mutual Fund announces launch of equity long short fund under Arthaya SIF

Synopsis

Union Mutual Fund has launched its Arthaya Equity Long Short Fund under the new SEBI SIF framework. This strategy aims to generate returns across market cycles by combining long equity positions with selective short exposure, bridging the gap between traditional and alternative investment products.

Union Mutual Fund today announced the launch of Arthaya Equity Long Short Fund investment strategyunder Arthaya SIF, marking its entry into SEBI’s newly introduced SIF framework.

The new fund offer or NFO of the fund will open for subscription from May 4 and will close on May 18.

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The fund is designed to provide investors with a more dynamic equity approach, one that aims to generate returns across market cycles, not just in rising markets. At a time when investor portfolios are often polarised between traditional long-only strategies and high-entry alternative products, Arthaya SIF aims to bridge this gap by offering a more flexible, risk-aware investment framework within a regulated structure.

"Investor portfolios today are caught between two extremes, traditional long-only funds that aims to ride market beta, and alternative strategies that remain out of reach for many. Arthaya SIF is our effort to address this gap,” said Madhu Nair, CEO, Union AMC.

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“With the Equity Long Short strategy, we are introducing a framework that allows portfolios to respond to markets, not just participate in them. The ability to dynamically calibrate exposure becomes critical in an environment where returns are increasingly uneven and episodic,” Nair said.

The strategy focuses on long-term capital appreciation while aiming to actively manage downside risk by combining long equity positions with selective short exposure through derivatives. This dual approach enables the portfolio to navigate varying market environments with greater flexibility.

"The core of this strategy lies in identifying dislocations where price diverges from underlying fundamentals and building long and short exposures around that insight. The long portfolio focuses on businesses with the potential earnings visibility, while the short portfolio targets structurally weaker companies or mispriced opportunities. This dual engine allows us to aim for structured, risk-adjusted outcomes across market cycles,” said Rajesh Aynor, SIF Investment Lead, Union AMC.

In January 2026, the fund house announced its entry into the Specialized Investment Fund (SIF) space with the launch of ‘Arthaya' SIF.

‘Arthaya’ derived from the Sanskrit word Artha (Wealth) means “Purpose Led Wealth”. It reflects Union Mutual Fund’s philosophy of purposeful wealth creation - blending Indian roots with a modern outlook and aligning investors' financial journey with long-term goals.

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Structured within SEBI’s SIF framework, Arthaya SIF aims to offer investors access to a more sophisticated equity strategy without the high entry barriers typically associated with alternative investment products.

The fund house also informed that Rajesh Aynor will lead this platform. As part of building deep capabilities in this segment, Union AMC has appointed Rajesh Aynor as Investment Lead – SIF. Rajesh brings over two decades of experience managing tactical, hybrid, and long-short strategies across market cycles. His appointment reflects Union AMC’s intent to bring institutional-grade thinking, risk management, and differentiated perspectives to this new vertical, the fund house said in January.

(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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