Tata Mutual Fund has launched its first specialized investment fund– Titanium hybrid long-short fund, which is open for subscription from Monday to December 8.
Its CBO, Anand Vardarajan told FE: “We will look at equity and equity hybrid categories before fixed income. We feel more clarity is required on the fixed income side and are awaiting some clarifications. Directionally, we want to get into all categories, but the priority is equity and hybrid categories.”
Hybrid Fund Strategy
On returns, he said, this will give balanced advantage fund like risk with aggressive hybrid like return profile. “Behaviorally, I think it will look more like BAF, but in terms of this return profile, it could be slightly more than BAF, will be more like aggressive hybrid,” he added.
Vardrajan also noted that there are only about 1,500–1,600 certified sellers today and hence the product will take some time to become more mainstream as investor experience becomes better, as more players jump in, as there are more products which come in, as there are more sellers who get certified.
SIF Advantage
He explained that mutual funds make money when markets go up. He said, “In a 30 year cycle, we’ve seen that roughly 60–65% of the time, move sideways 15% of the time, and fall 20–25% of the time. So 35–40% of the time, the money does not earn. With SIFs, investors can participate across all phases — up, down, and sideways — because they can take long and short positions.”