What is a hybrid long-short SIF?

A Hybrid Long-Short SIF is a SEBI category that invests in a combination of equity and debt instruments, with the ability to take long and short positions in both. Unlike pure equity long-short SIFs, hybrid SIFs maintain an asset allocation between equity and fixed income while using derivatives for alpha generation.

How much equity does a hybrid long-short SIF hold?

SEBI mandates that hybrid long-short SIFs maintain an equity allocation typically between 40-80% (the specific range depends on the sub-category). The remaining allocation is in debt instruments. Some hybrid SIFs can dynamically adjust the equity-debt split within SEBI limits based on market conditions.

Which AMCs offer hybrid long-short SIFs?

Altiva Asset Management and several other AMCs have launched hybrid long-short SIFs. The hybrid category was one of the first to see launches after SEBI introduced the SIF framework in February 2025. Visit SIFscan's fund universe filtered by 'Hybrid Long-Short' for the current complete list.

How are hybrid long-short SIFs different from balanced advantage funds?

Hybrid long-short SIFs can take active short positions using derivatives for alpha generation, while balanced advantage funds (BAFs) are long-only and adjust asset allocation for hedging purposes. SIFs have a ₹10 lakh minimum vs no minimum for BAFs. SIFs are also subject to bi-monthly (rather than monthly) portfolio disclosure requirements.

Hybrid Long-Short SIFs: Category Guide

Hybrid Long-Short SIFs maintain 25-75% equity allocation with flexible asset allocation across equity, debt, and other instruments.

Reviewed Mar 20261 official source5 min readFact-checked against official sources

What you'll learn

125-75% equity allocation band

2How equity and debt long-short strategies combine

3Risk profile vs equity-only and debt-only categories

4What to verify in scheme documents

Key Takeaway

Hybrid Long-Short SIFs allocate 25-75% to equity with flexible asset allocation between equity and debt. They combine long-short equity strategies with debt instruments, offering moderate risk through diversification across asset classes.

What is the Hybrid Long-Short SIF Category?

Hybrid Long-Short is one of seven SEBI-defined SIF categories. These funds maintain a flexible equity allocation of 25-75%, with the remainder in debt and other instruments. Like equity long-short SIFs, they can use derivatives for short positions and alpha generation, but with a broader asset allocation mandate that spans both equity and debt.

SEBI Mandate Details

Parameter	Requirement
Equity allocation range	25-75% in domestic equities
Debt allocation	Remaining allocation in debt, money market, and other instruments
Maximum unhedged short position	Up to 25% of portfolio via derivatives
Derivatives usage	Permitted for both hedging and alpha generation
Minimum investment	₹10 lakh (PAN level across AMC's SIF schemes)
NAV frequency	Daily
Risk band disclosure	Monthly (1-5 scale)
Portfolio disclosure	Alternate months (full holdings)

Variable Equity Allocation

The defining characteristic of hybrid long-short SIFs is the wide 25-75% equity allocation band. This gives fund managers significant latitude to adjust the portfolio's equity-debt mix based on market conditions, valuations, and their macro outlook. In a risk-off environment, a manager might tilt toward 25-35% equity; in a risk-on environment, they might approach 70-75%.

This flexibility is paired with long-short capability: the fund can simultaneously hold long equity positions, short equity derivative positions, and a variable debt allocation, providing multiple levers for return generation and risk management.

Strategy Flexibility

Hybrid long-short SIFs have the broadest strategy toolkit among SIF categories:

Asset allocation lever: Ability to shift between 25-75% equity based on market outlook
Long-short equity: Short derivative positions for hedging or alpha within the equity sleeve
Debt management: Active duration and credit management within the debt allocation
Cross-asset positioning: The combination of equity long-short with active debt management provides a multi-asset return profile

View Hybrid Long-Short SIF Funds

See the current list of hybrid long-short SIF schemes with NAV, AUM, and risk data.

Browse Hybrid Long-Short SIFs

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category guideEquity Long-Short6 min category guideActive Allocator5 min category guideDebt Long-Short5 min

This content is for educational purposes only and does not constitute investment advice. Regulatory frameworks may change. Always verify with official SEBI circulars and consult a qualified financial advisor before investing. Last updated: March 2026.