HSBC Mutual Fund’s RedHex Hybrid Long-Short Fund, a Specialised Investment Fund (SIF) strategy, has crossed the Rs 1,000 crore AUM, within just 2 months of its listing.
The fund has garnered strong investor interest, with around 1,950 unique folios participating in the strategy, reflecting growing demand for differentiated investment solutions that offer greater portfolio flexibility and diversification.
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Launched in June 2026, RedHex combines investments across various asset classes, including fixed income, equity arbitrage, REITs and INVITs to pursue risk-adjusted returns across market cycles.
“Investor preferences are evolving, with a growing appetite for investment solutions that offer greater flexibility and diversification while retaining the transparency and discipline associated with mutual funds. This achievement of ₹1,000 crore in AUM is a strong reflection of this evolving demand and the growing relevance of the SIF category. We believe solutions such as RedHex can play an important role in addressing the needs of investors seeking differentiated approaches to portfolio construction,” said Kailash Kulkarni, CEO, HSBC Mutual Fund.
The fund’s strategy seeks to deliver strong accrual potential with relatively low volatility through diversified allocation across asset classes. It aims to generate regular income in a tax efficient manner, while limiting sensitivity to market movements, supported by active portfolio management and strategy-level risk controls.
“RedHex Hybrid Long-Short Fund is built around a disciplined approach to portfolio construction, with a focus on asset allocation, robust credit selection, accrual potential, and prudent risk management, while keeping overall volatility relatively low. Crossing the ₹1,000 crore AUM demonstrates the confidence investors have placed in this differentiated strategy, which combines fixed income with equity arbitrage, REITs and INVITs. Our focus remains on maintaining a measured approach to risk while seeking to generate consistent risk-adjusted outcomes across market cycles,” said Shriram Ramanathan, CIO – Fixed Income, HSBC Mutual Fund.
The strong response to RedHex SIF comes amid the evolving SIF landscape in India, with investors increasingly looking for solutions positioned between traditional mutual funds and higher-ticket investment products such as Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). RedHex SIF has been designed as an intermediate investment solution offering the regulatory transparency of mutual funds along with greater portfolio flexibility.
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The fund is benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index and is managed by Shriram Ramanathan (Debt portion, InvITs and REITs), Venugopal Manghat (Equity), Praveen Ayathan (Arbitrage) and Mayank Chaturvedi (Foreign securities).
The fund is suitable for investors who are seeking income and capital appreciation over the medium to long term and want investment in fixed income as well as equity and equity related securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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