Tata Asset Management has introduced the Titanium Specialized Investment Fund (SIF) under the Tata Mutual Fund umbrella.
This fund follows a hybrid long-short investment strategy, investing in equity, debt, and derivatives.
SIFs aim to offer investors better risk-adjusted returns.
Investments for this fund are currently open and will remain available until December 8th.
According to the Economic Times Hindi, this fund is suitable for high-risk investors, and the minimum investment amount is ₹10 lakh.
How the Fund Generates Returns
The Titanium Specialized Investment Fund manages both long and short positions, allowing it to earn from both rising and falling markets. It uses equity derivatives to build market views and reduce volatility-related risks.
Anand Vardarajan told the Economic Times that historically, the fund tends to rise about 65% of the time and fall about 35% of the time.
While most investors wait for markets to go up, SIFs enable them to benefit even when markets decline.
Fund Model and Investment Structure
This fund is categorized as a hybrid long-short strategy. Its model includes:
A minimum 25% allocation to equity and debt
A maximum 25% unhedged short exposure
This structure helps the fund capture market opportunities through long positions while using arbitrage strategies to reduce risk. Additionally, the fund also invests in REITs and InvITs.