HSBC Mutual Fund has introduced a new investment product called the RedHex Hybrid Long-Short Fund.
The scheme is part of a Specialised Investment Fund (SIF) strategy designed for investors who want a mix of regular income and long-term capital growth.
The New Fund Offer (NFO) is currently open and will close on June 16.
The fund aims to offer a balanced approach by investing across multiple asset classes to manage risk and improve returns.
Contents
What Is the RedHex Hybrid Long-Short Fund?
The RedHex Hybrid Long-Short Fund follows a diversified investment strategy.
It combines exposure to:
Fixed income instruments
Equity arbitrage opportunities
Infrastructure Investment Trusts (InvITs)
Real Estate Investment Trusts (REITs)
The fund uses a 50:50 allocation model across debt, REITs/InvITs, and equity arbitrage.
This structure is designed to generate steady, accrual-based returns while keeping volatility relatively low.
According to HSBC Mutual Fund, the strategy is built to perform across different market conditions by using credit exposure, liquidity management, and active risk controls.
A Focus on Stability and Risk-Adjusted Returns
The main goal of the fund is to deliver consistent returns with reduced ups and downs compared to traditional equity investments.
HSBC says the strategy aims to:
Generate stable income over time
Reduce downside risk during market volatility
Offer tax-efficient, risk-adjusted returns
Maintain flexibility across market cycles
The fund is backed by an experienced investment team with expertise in credit markets, derivatives, arbitrage strategies, and special situations.
What HSBC Mutual Fund Says About the Strategy
Speaking about the launch, Kailash Kulkarni, CEO of HSBC Mutual Fund, said the product is designed for investors looking for professionally managed solutions in a complex market environment.
He noted that the fund aims to act as a middle ground between traditional mutual fund clarity and more flexible investment strategies, while keeping volatility under control.
Fund Management and Benchmark
The performance of the fund will be compared against the NIFTY 50 Hybrid Composite Debt 50:50 Index.
The fund will be managed by a team of specialists:
Debt, InvITs, and REITs: Shriram Ramanathan
Equity portion: Venugopal Manghat
Arbitrage strategy: Praveen Ayathan
Foreign securities: Mayank Chaturvedi
Each manager will handle a specific part of the portfolio based on their area of expertise.
Investment Details and Who It Is For
The RedHex Hybrid Long-Short Fund is designed for investors looking for a “mid-ticket” investment option with diversified exposure.
Key details include:
Minimum investment: ₹10 lakh
Additional investment: in multiples of ₹1
Focus: balanced risk and return strategy
HSBC Mutual Fund says the structure is designed to offer better tax efficiency and smoother returns compared to traditional fixed-income products.
Should You Consider This Fund?
The fund is positioned for investors who want stability with moderate growth potential rather than aggressive market-linked returns.
With its diversified structure and risk-managed approach, the RedHex Hybrid Long-Short Fund aims to provide a more stable investment experience across different market cycles.