HSBC Mutual Fund launches RedHex Hybrid Long-Short Fund (SIF)

The strategy combines investments across asset classes - fixed income, equity arbitrage, REIT and INVIT units to pursue risk adjusted returns across market cycles. The New Fund Offer (NFO) will be open from 2 June 2026 to 16 June 2026.

SIFs were introduced to bridge the gap between traditional mutual funds and higher-ticket products like Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). RedHex Hybrid Long-Short Fund offers an intermediate investment that combines the regulatory transparency of mutual funds with portfolio flexibility.

The product is suited for ‘mid-ticket’ investors, with a minimum application of ₹10,00,000 (₹1,00,000 for Accredited Investors).

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Kailash Kulkarni, CEO, HSBC Mutual Fund, said, “Investors today are more aware and require unique solutions that are professionally managed, and built to navigate complex market conditions. RedHex Hybrid Long-Short Fund is designed as a practical middle ground - offering the clarity investors expect from mutual funds, with added flexibility of a product which is designed to be less volatile while giving superior, tax efficient risk adjusted returns.

Shriram Ramanathan, CIO Fixed Income, HSBC Mutual Fund, said, “Our focus is on robust credit selection and risk controls, aiming to deliver high accrual potential with lower volatility across market cycles. In a measured way, the fund also aims to take exposure to REITs and INVITs, both of which are growing asset classes”

The fund strategy aims to deliver strong accrual potential with relatively low volatility through a diversified allocation across asset classes designed to generate regular income with limited sensitivity to market swings, while also enhancing tax efficiency and risk-adjusted returns. Structured as an interval investment fund, it allows subscriptions on any business day and offers weekly redemptions. Underpinning all this is robust risk management, combining active portfolio management with strict strategy-level risk controls to help reduce volatility.