SEBI-Regulated Categories
7 investment strategies, one regulatory framework
SEBI defines 7 long-short strategy categories for Specialised Investment Funds. Each has different equity mandates and risk profiles. Use this guide to understand what each strategy actually does and find the right one for you.
Category Overview
6
Equity
0
Debt
8
Hybrid
Risk-Return Positioning
How the 7 categories compare on risk and return potential. Click a bubble to jump to that category.
Equity-oriented (6 funds)
Equity Long-Short
Buy stocks you like, short the ones you don't
An open-ended interval strategy investing in equity and equity related instruments. The fund can invest minimum 80% in equity and equity related instruments, while the maximum unhedged derivative short exposure is 25%.
Best for: Investors seeking equity returns with reduced drawdowns · 3+ years horizon
Typical Allocation
Equity Ex-Top 100 Long-Short
Mid and small-cap alpha with downside hedging
An open-ended interval strategy investing in equity and equity related instruments. The fund can invest minimum 65% in equity and equity related instruments excluding top 100 stocks by market cap, while the maximum unhedged derivative short exposure is 25% excluding top 100 stocks by market cap.
Best for: Growth-seekers comfortable with mid/small-cap volatility · 3-5 years horizon
Typical Allocation
Sector Rotation Long-Short
Bet on sectors, not just stocks
An open-ended/interval investment strategy investing in equity and equity related instruments in maximum 4 sectors up to 80%. While the maximum unhedged derivative short exposure is 25%, short exposure will be applicable at the sector level.
Best for: Macro-aware investors who want tactical sector bets · 2-4 years horizon
Typical Allocation
Debt-oriented (0 funds)
Debt Long-Short
Play interest rate moves in both directions
An interval investment strategy investing in debt instruments across durations, including limited short exposure through unhedged positions in exchange-traded debt derivative instruments.
Best for: Conservative investors seeking bond alpha beyond buy-and-hold · 2-3 years horizon
Typical Allocation
Sectoral Debt Long-Short
Concentrated credit bets on specific debt sectors
An interval investment strategy investing in debt instruments with a minimum exposure across at least two sectors, a maximum of 75% in any single sector, and permitting up to 25% short exposure through unhedged derivative positions in debt instruments, applied at the sector level.
Best for: Credit specialists targeting specific debt market niches · 2-3 years horizon
Typical Allocation
Hybrid (8 funds)
Active Asset Allocator Long-Short
The fund manager decides: equity, debt, or both
These funds have maximum flexibility. The manager dynamically shifts allocation between equity, debt, and other asset classes based on market conditions. Equity exposure can range from near-zero to high.
Best for: Investors who want the manager to handle asset allocation timing · 3+ years horizon
Typical Allocation
Hybrid Long-Short
A balanced long-short across equity and debt
Hybrid L-S funds maintain 25-75% equity allocation and can go long-short in both equity and debt portions. This balanced approach targets moderate returns with lower volatility.
Best for: Balanced investors wanting long-short across both equity and debt · 2-4 years horizon
Typical Allocation
Compare categories
Select 2-3 categories to see a side-by-side comparison of risk, returns, and live data.