IDFC MF has announced the launch of IDFC India Equity Hedge - Tactical Fund, an AIF Category 3 offering.
According to a company press release, the fund will follow a tactical long / short equity strategy and will aim to generate annualized returns comparable to equity funds across both bull and bear market cycles. The fund will have significantly higher net exposures, typically ranging between -40% to +120%, to have higher participation in equity market movements on both sides.
Commenting on why IDFC AMC decided to launch the product, Vishal Kapoor, CEO, IDFC AMC, said “With the current market volatility, investors are looking for a fund that can provide absolute returns irrespective of the market cycle or how the interest rates are moving. Also, as the fund’s return and risk drivers are very different from traditional products, it has the potential to offer an uncorrelated alternative. We estimate that IDFC India Equity Hedge - Tactical Fund has the potential to raise Rs. 1000 crore in the current market.”
The fund will be managed by IDFC AMC’s Vijay Krishna Kumar, Director- Liquid Alternatives. Being an AIF category 3 offering, the minimum investment in the fund would be Rs. 1 crore.
