Union Mutual Fund has launched its inaugural long-short equity Specialized Investment Fund (SIF) under the Arthaya brand. This fund is tailored to provide investors with a more adaptable equity investment strategy, aimed at generating returns across various market cycles, not solely during bullish phases.
The New Fund Offer (NFO) will be available for subscription from May 4 to May 18, with a minimum investment threshold set at ₹10 lakh. In an investment landscape where portfolios often lean toward either conventional long-only fund strategies or high-entry alternative products, Arthaya SIF seeks to fill this gap by presenting a more flexible and risk-conscious investment framework within a regulated environment.
Madhu Nair, CEO of Union Asset Management Company (AMC), noted that investor portfolios are currently caught between the two extremes of traditional long-only funds, which aim to capitalize on market beta, and alternative strategies that remain inaccessible for many. He emphasized the importance of dynamically adjusting exposure in a market where returns are increasingly unpredictable and sporadic.
Dual Approach
The fund’s strategy focuses on long-term capital appreciation while actively managing downside risk by merging long equity positions with select short positions through derivatives. This dual approach allows for greater flexibility in navigating different market conditions.
Rajesh Aynor, SIF Investment Lead at Union AMC, stated that the foundation of this strategy lies in identifying price dislocations where values deviate from underlying fundamentals, successfully constructing long and short exposures based on these insights. The long portfolio will concentrate on companies with evident earnings potential, while the short portfolio will target structurally weaker firms or mispriced opportunities.
Published on April 30, 2026.
