HSBC Mutual Fund Launches RedHex Hybrid Long-Short Fund (SIF), Investors Are Looking for Unique Solutions Says CEO Kailash Kulkarni

HSBC Mutual Fund has launched RedHex Hybrid Long-Short Fund, a Specialised Investment Fund (SIF) strategy designed for investors seeking regular returns and capital appreciation. The strategy combines investments across asset classes - fixed income, equity arbitrage, InvITs and REITs to pursue risk-adjusted returns across market cycles.

The new fund offer  (NFO) of the fund, is open for subscription and will close on June 16. RedHex Hybrid Long-Short Fund is built for investors who want a blend of stability and alpha potential. Using a 50:50 allocation across debt, REITs/InvITs and equity arbitrage, the strategy targets steady, accrual-led returns with relatively low volatility, aiming to deliver a smoother experience across market conditions.

Designed to stay relevant across cycles, the fund combines consistent credit exposure, liquidity management and active risk controls to pursue healthy absolute income while seeking to limit downside risk. The approach is backed by an experienced team with capabilities across credit, derivatives and special situations.

“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,” said Kailash Kulkarni, CEO, HSBC Mutual Fund.

The performance will be benchmarked against NIFTY 50 Hybrid Composite Debt 50:50 Index and will be managed by Shriram Ramanathan (Debt portion, InvITs and REITs), Venugopal Manghat (Equity), Praveen Ayathan (Arbitrage) and Mayank Chaturvedi (Foreign securities).

The fund also aims to offer tax and risk–return efficiency versus traditional fixed-income options by blending diversified return drivers with disciplined risk management and a long-term outcomes focus—supporting a more resilient, efficient investment journey.

RedHex Hybrid Long-Short Fund offers an intermediate investment that combines the regulatory transparency of mutual funds with portfolio flexibility. The product is suited to ‘mid-ticket’ investors, with a minimum application of Rs 10 lakh and in multiples of Re 1 thereafter.