Infinity Hybrid Long Short Fund: Managing risk and return across markets

Kotak MF has launched a Specialized Investment Fund (SIF), Infinity Hybrid Long Short Fund. SIFs are a new type of investment products which combine characteristics of traditional mutual funds and alternative investments like PMS or AIFs.

In this article, we will discuss the SIF Infinity Hybrid Long Short Fund, which has opened for subscription on 15^th June 2026 and closes on 29^th June 2026.

What are SIFs?

SEBI has allowed mutual funds to create Specialized Investment Funds, which bridge the gap between mutual funds and PMS / AIFs. SIFs will have the flexibility to use derivatives for different investment strategies. At this stage, SEBI has permitted the following strategies for SIFs.

Introducing the Infinity Hybrid Long Short Fund

The Infinity Hybrid Long Short Fund employs a hybrid strategy that combines equity and debt investments with controlled short exposure via derivatives.

Key features of the fund:

• Minimum investment of Rs 10 lakhs


• The fund aims to protect downside by allocating to arbitrage/debt and short strategies.


• Can short index/securities up to 25% of net assets /AUM.


• Daily subscription facility with twice-weekly redemption (Monday and Wednesday)


• Fund managers: Mr. Hiten Shah, Mr. Kalpesh Jain, Mr. Abhishek Bisen


• Benchmark: Nifty 50 Hybrid Composite Debt 50:50 Index

Investment Approach of the fund

Investment Strategy of Infinity Hybrid Long Short Fund

The investment strategy is to seek opportunities across market situations and an Arbitrage ++ positioning with marginally high volatility.

Source: Kotak AMC Product flipbook. Note: Equity and equity-related instruments include derivatives, special situations, and short positions.

Portfolio Allocation Strategy

Source: Kotak AMC Product flipbook. Note: Equity and equity-related instruments include derivatives, special situations, and short positions.

Asset allocation as per ISID

Under normal circumstances, the indicative asset allocation under the investment strategy will be:

Source: Kotak AMC Product flipbook

Why should you choose a Hybrid SIF over other low-risk funds and/ or hybrid funds?

• Difference between a Hybrid SIF and other low-risk funds
  
  

  

  Source: Kotak AMC Product flipbook



• Difference between a Hybrid SIF and a Hybrid fund
  
  

  

  Source: Kotak AMC Product flipbook

How do the fund managers manage risk in the Infinity Hybrid Long Short Fund

Source: Kotak AMC Product flipbook

Risk- Return Matrix of the fund?

Source: Kotak AMC Product flipbook

Probable market Performance across market scenarios

Source: Kotak AMC Product flipbook

Who may find the Infinity Hybrid Long Short Fund suitable?

• High Net Worth Individuals (HNIs): Investors seeking more advanced strategies than mutual funds but without the high entry barrier of PMS or AIFs.


• Those with a good understanding of financial markets and seeking exposure to long-short hybrid strategies with a minimum investment of ₹10 lakh


• Ideal for investors seeking long-term cash deployment with lower volatility over a 24-month horizon.


• Appeals to fixed-income investors familiar with indexation benefits, orthodox banking customers, retirees and long-term arbitrage investors.

Investors should consult with their financial advisors and eligible mutual fund distributors if the Infinity Hybrid Long Short Fund is suitable for their investment needs.