Alternative Investment Funds
Long-Short & Quant Strategies
Hedge-fund-style strategies using derivatives, long-short equity and quantitative models.
- Minimum
- ₹1 Crore
- Risk
- Very High risk
- Liquidity
- Low — difficult to exit early
Overview
What this actually is
Category III AIFs may use leverage and derivatives, and pursue absolute-return strategies — long-short equity, quantitative models, and arbitrage.
These strategies aim to make money in both rising and falling markets. When the model works, correlation with the market is low. When it does not, leverage magnifies the loss.
Why consider it
What it does well
- Strategies designed to seek returns independent of market direction.
- Low correlation to a long-only equity portfolio when the strategy performs.
- Systematic, rules-based execution in quantitative mandates.
- May offer periodic redemption windows, unlike Category I and II.
Key details
The specifics
- Minimum commitment
- ₹1,00,00,000 (regulatory)
- Category
- SEBI Category III AIF
- Leverage
- Permitted — magnifies gains and losses
- Liquidity
- Limited redemption windows
- Risk
- Very high
Who is this for
You might be a fit if…
If none of these describe you, that is useful information too — tell us on the call and we will point you somewhere more suitable.
- Sophisticated investors who understand derivatives and leverage
- Eligible investors able to commit ₹1,00,00,000
- Investors seeking diversification away from long-only equity
Risks & considerations
- Very high risk. Leverage magnifies losses as well as gains.
- Derivative strategies can lose money rapidly and in ways that are difficult to anticipate.
- Quantitative models are built on historical relationships that can break down without warning.
- Category III AIFs are taxed at the fund level, which materially affects net returns.
- Liquidity is limited to defined redemption windows, if offered at all.
- Strategy complexity makes performance difficult to attribute or predict.
Important information
Alternative Investment Funds carry a regulatory minimum commitment of ₹1,00,00,000 and are available only to eligible investors. AIFs are illiquid, long-horizon products and are not suitable for every investor. Please read the Private Placement Memorandum carefully before investing.
Investment in securities market are subject to market risks. Read all related documents carefully before investing.
Past performance is not indicative of future returns.
Investment in Nuvama products is facilitated by Sarvam Associates as an authorised distribution partner. Products are offered by Nuvama Wealth Management Ltd. All investments are subject to market risks. Please read all scheme related documents carefully.
Sarvam Associates is a distribution partner, not the manufacturer of these products.
Also in Alternative Investment Funds
Cat I AIF
Venture Capital & SME Funds
Early-stage startups and growth-stage SMEs through SEBI-registered Category I AIFs.
Very High risk- Liquidity
- Locked in
From ₹1 CroreCat II AIF
Private Equity & Debt
Private equity, real estate debt and structured credit not available on public markets.
High risk- Liquidity
- Locked in
From ₹1 Crore
Next step
Talk to a Sarvam advisor
Fifteen minutes on long-short & quant strategies — whether it fits, what it would cost you, and what could go wrong. No obligation either way.
Important information
Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing.
Sarvam Associates is a distribution partner, not the manufacturer of these products.
The content on this website is for general information only and does not constitute investment advice or a recommendation to buy or sell any product. Product suitability depends on your individual circumstances. Please speak with an advisor before investing.