Investors seeking to get exposure to Specialised Investment Funds should understand what they expect to achieve from it and not look for an SIF to just add on to their portfolio, says Radhika Gupta, MD and CEO, Edelweiss Mutual Fund.
In a post on X, Gupta said investors should focus on the need within their portfolio before choosing an investment product. She highlighted three SIF strategies from Edelweiss as examples of how different portfolio requirements can be addressed.
“Many people ask me, ‘Do I need a SIF?' That's the wrong question. Don't ask for the product. Show me the problem,” Gupta said in the post.
Three SIF Solutions For Different Needs
Gupta pointed to the Altiva Hybrid Long-Short Fund for investors looking for a more efficient alternative to traditional fixed income. The strategy is positioned as a lower-risk, moderate-return solution and aims to provide an income-oriented approach with an arbitrage-plus risk-return profile.
For investors seeking higher-alpha generating opportunities, Gupta recommended the Altiva Equity Ex-Top 100 Long-Short Fund. The approach of this fund is more aggressive as it has a concentrated portfolio of 35-45 stocks, which are outside the top 100 most-capitalised companies.
The third strategy, Altiva Equity Long-Short Fund, is positioned as a Large Cap plus solution. Gupta described it as an option for investors seeking core equity exposure with some additional alpha and lower noise.
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‘Better Solutions' Over More Products
Gupta's broader message is that investors should not approach SIFs simply as another product category to add to their portfolios.
That could mean looking for better income options, higher-alpha opportunities or a way to add equity exposure with an additional alpha component. The investment strategy should follow the need, rather than the other way around.
“Portfolios don't need more products. They need better solutions to existing problems,” Gupta said.
The approach also reflects on the importance of a solid strategy within an overall portfolio rather than on the SIF label itself. For investors evaluating such products, the key question, according to Gupta's framework, is therefore not whether they need a SIF, but what specific portfolio need they are trying to address.
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