Arthaya Equity Long Short SIF: Potential to exploit opportunities across market conditions

Union MF has launched Arthaya Equity Long Short SIF. A long short strategy involves taking long positions in stocks with strong fundamentals and long term growth potential, along with tactical short positions (hedged or naked) in stocks that may see decline in share prices. Long short strategy offer flexibility to manage downside risk and reduce volatility, with a focus on delivering potential superior risk adjusted returns. Arthaya Equity Long Short SIF will open for subscription on 4^th May 2026 and will close on 18^th May 2026.

What are SIFs?

SIFs bridge the gap between mutual funds and alternate products like PMS and AIFs.

What are Equity Long-Short Fund?

As per SEBI’s equity long short funds are allowed to take short positions within specified limits e.g. 25%. The aim is create alphas both through long and short strategies in different market phases.

How long short strategy works in different market conditions?

How are shorting opportunities identified

• Combination of global, economic and stock specific factors


• Disconnect between stock prices and fundamentals


• High valuation is the not the sole criterion for shorting candidates


• Long and short opportunities are evaluated independently


• Corporate governance lapses, disruption victims, special situations, cyclical stocks etc.

Arthaya Equity Long Short SIF strategy

Indicative Allocation

Investment philosophy

Why invest in Arthaya Equity Long Short SIF?

Market moves in cycles. Arthaya Equity Long Short SIF will aim to capture market upside in rising markets and capital protection in falling markets. In highly uncertain or stressful market conditions the fund can reduce its net equity exposure through hedging.

Arthaya Equity Long Short Fund offers superior risk adjusted returns over the entire investment cycle (rising and falling market) by reducing volatility and portfolio drawdowns in falling markets.

Why invest in Arthaya Equity Long Short Fund now?

Market has rebounded after ceasefire between US and Iran. On the positive side, end of war in the Middle East will improve risk sentiments. In the long term outlook for Indian equities remain strong due India’s strong macroecononomic fundamentals (e.g. robust GDP growth, narrowing fiscal deficit etc), continued capex spending by the Government and revival of conusmption demands post GST rate cuts. In the short term, concerns about resumption or re-escalation of the war in Persian Gulf, continued disruption to oil and gas flows, high crude oil prices, volatile geo-political dynamics and continuing FII outflows are headwinds for the market. The current stalemate may continue or intensify if progress is not made in negotiations between the two sides. In uncertain market conditions, Arthaya Equity Long Short Fund can preserve investor’s capital, reduce portfolio volatility and offer superior risk adjusted returns over the entire investment cycle.

Who can find Arthaya Equity Long Short SIF suitable?

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


• Sophisticated Investors with good understanding of financial markets and seeking exposure to long-short equity strategies with a minimum investment of Rs 10 lakh.


• Investors with high-risk appetite and who understands market volatility.

Investors should consult with their financial advisors and eligible mutual fund distributors if Arthaya Equity Long Short SIF is suitable for their investment needs.