Hybrid long-short mutual funds launched: What they mean for you
SBI Mutual Fund and Edelweiss Mutual Fund just launched two hybrid long-short Specialized Investment Funds (SIFs)—the Magnum Hybrid Long Short Fund and Altiva Hybrid Long-Short Fund—on October 1, 2025.
These funds are designed for people who want more stable returns in unpredictable markets by blending equity, debt, and smart use of derivatives with both long and short positions.
How the 2 funds differ from each other
The Magnum fund invests mostly in equities (65-75%) with the rest in debt, and can take unhedged/short derivative positions up to 25% of the portfolio, while also using a wider range of derivative strategies (including covered calls or protective puts) as part of its hedged/arbitrage allocation.
The Altiva fund is more flexible, investing 25-75% each in equity and debt using strategies like arbitrage or pair trades.
Both offer daily subscriptions and periodic redemptions—and thanks to the SIF tax regime, you get a lower long-term capital gains tax rate of 12.5% if you stay invested for over a year.
Why hybrid long-short funds are gaining traction
Unlike regular hybrid mutual funds, these SIFs let managers actively short sell stocks and use a wider range of derivatives.
This means better risk management when markets get choppy—and potentially smoother returns overall.
The team combines data-driven models with hands-on research to help balance risk and reward for today's investors.