Arudha Equity Long-Short Fund
An open-ended equity strategy investing in listed equities with limited short exposure through derivatives — the first pure equity long-short SIF from Bandhan AMC.
₹10L
Min Investment
2.25%
Max TER
Level 5
Risk Band (High)
NIFTY 500 TRI
Benchmark
T+3
Redemption
0.50%
Exit Load (≤30d)
NFO Information
NFO Open Date
March 5, 2026
NFO Close Date
March 18, 2026
NFO Price
₹10 per unit
Re-opening Date
March 30, 2026
Registrar (RTA): CAMS — NAV available at www.camsonline.com
1. Fund Snapshot
| Fund Objective | To generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments, including limited short exposure through derivatives. |
| Strategy in Brief | Predominantly long equity book (80–100%) with capped short positions (≤25% of net assets) via exchange-traded derivatives. Captures upside in bull markets while offering partial downside mitigation in bear phases. |
| What It Invests In | Indian listed equities, equity-related instruments (warrants, convertibles), derivatives (futures, options, CDS, IRS, FRA), debt & money market instruments, InvITs, and overseas securities (up to 50%). Will NOT invest in unrated debt or commodity derivatives. |
| Benchmark | NIFTY 500 Total Return Index (TRI) — covers ~93% of India's listed market cap across large, mid, and small caps. |
| Investment Horizon | 3–5 years minimum recommended. Open-ended; daily subscription & redemption on business days. |
2. Who Manages Your Money?
Mr. Nilesh Saha
11+ years experience
Qualifications
BE (Hons) Mechanical Engineering; MBA – IIM Bangalore; CFA Charterholder
Previous Roles
Julius Baer Wealth Advisors – Cat III AIF (2023–2025); Edelweiss AMC – Cat III AIF Portfolio Mgmt (2014–2023)
Also Manages
Arudha Hybrid Long-Short Fund
Mr. Brijesh Shah, VP – Fixed Income
15+ years experience
Qualifications
Post Graduate Diploma in Finance
Previous Roles
Bandhan AMC (Aug 2015–present); IDBI AMC (2013–2015); India Bulls AMC (2011–2012)
Also Manages
Arudha Hybrid Long-Short Fund; 10+ Bandhan MF schemes (Liquid, Overnight, Floater, BAF Debt, etc.)
3. Is This Right for You?
Ideal For
- HNI / UHNI investors with ₹10 lakh+ to deploy
- Investors comfortable with equity market volatility
- 3–5 year+ investment horizon
- Seeking alpha beyond traditional mutual funds via long-short strategies
- SEBI Accredited Investors (eligible at ₹1 lakh minimum)
- Portfolio diversification / satellite allocation
Not Suitable If
- You need capital protection or guaranteed returns
- Investment horizon is less than 2–3 years
- You are a US / Canadian resident (regulatory restrictions)
- You cannot tolerate NAV drawdowns from derivative positions
- You need immediate, unrestricted liquidity at all times
- Total SIF investment across strategies is below ₹10 lakh
4. Asset Allocation Framework
| Asset Class | Min % | Max % | Current % |
|---|---|---|---|
| Equity & Equity-Related | 80% | 100% | NFO — TBD |
| ↳ Unhedged Short (max) | 0% | 25% | — |
| Debt & Money Market | 0% | 20% | NFO — TBD |
| Derivatives — Hedging | 0% | 100% | — |
| InvITs | 0% | 20% | NFO — TBD |
| Overseas Securities | 0% | 50% | — |
5. Costs & Fees
LTCG (>12 months)
12.5% (Section 112A)
STCG (<12 months)
20% (Section 111A)
6. Key Risks
Market / Volatility Risk
Equity prices can fall sharply. NAV will fluctuate daily. Strategy invests 80–100% in equities by design.
Derivatives / Leverage Risk
Uses futures, options, CDS and other derivatives. Even small market moves can amplify gains OR losses. Unhedged long exposure up to 50%; short exposure up to 25%.
Short-Selling Risk
If a shorted stock rises, losses can mount rapidly. SEBI caps short exposure at 25%. Single party lending exposure limited to 5%.
Credit Risk
Debt instruments (up to 20%) carry issuer default risk. AT1/AT2 bonds capped at 10% of debt portfolio. No unrated debt permitted.
Minimum Threshold Risk
If total SIF investment falls below ₹10 lakh at PAN level, AMC will notify you — must rebalance within 30 days.
Overseas / Currency Risk
Up to 50% of net assets can be invested overseas. Rupee depreciation benefits; appreciation hurts returns.
7. ISID Scenario Analysis
Mandatory scenario analysis (per AMFI/SEBI guidelines) showing how P&L is affected by a ±10% Nifty move under four portfolio configurations:
| Scenario | Nifty +10% | Nifty -10% |
|---|---|---|
| 1. No short derivatives (95% long Nifty50) | +9.50% | -9.50% |
| 2. 25% short IT sector (IT fell 15%) | +10.75% | -10.75% |
| 3. 25% short Banking (Banking +8.5%) | +4.88% | -4.88% |
| 4. 15% short IT + 10% short Banking | +8.40% | -8.40% |
Scenarios are illustrative examples from the ISID (pages 65–66). Actual portfolio performance will vary.
8. Arudha Equity vs Hybrid — Side by Side
| Metric | Arudha Equity L/S | Arudha Hybrid L/S |
|---|---|---|
| AUM | New — NFO | New — NFO |
| Min Investment | ₹10 Lakh | ₹10 Lakh |
| Max TER | 2.25% | 2.25% |
| Exit Load | 0.50% (≤30d) | Varies |
| Risk Band | Level 5 | Level 5 |
| Differentiation | Pure equity L/S, open-ended, daily liquidity | Hybrid (equity + debt), interval fund |
9. Analyst Scorecard
| Criterion | Score | Commentary |
|---|---|---|
| Investment Objective Clarity | 4/5 | Clearly articulated long-term capital appreciation goal with well-defined long-short mechanism. First pure equity L/S SIF from Bandhan. Rich derivative toolkit (15+ strategies). |
| Fee Competitiveness | 3/5 | Direct plan cheaper. Fee in line with category but relatively high vs passive alternatives. |
| Liquidity & Redemption | 4/5 | Daily subscription/redemption is a key advantage over interval SIFs. T+3 payout. No lock-in. |
| Risk Management Framework | 4/5 | SEBI-compliant exposure limits. 25% short cap, 5% single-party cap, no unrated debt, mandatory 30-day rebalancing. |
| Performance vs Benchmark | N/A | New fund — no track record. To be assessed from March 2027 post first full year. |
10. Investment Thesis & Final Verdict
Key Strengths
- Daily liquidity advantage: Open-ended structure unlike most SIF long-short peers (interval funds)
- Rich derivative toolkit: 15+ documented strategies including spreads, condors, synthetics, pair trades
- SEBI-compliant guardrails: 25% short cap, 5% single-counterparty cap, mandatory rebalancing
- Investor-friendly structure: No entry load; 0.50% exit load only for first 30 days
- Accredited investor pathway: ₹1 lakh entry (vs ₹10 lakh standard) broadens accessibility
- Manager expertise: Nilesh Saha's IIM-B + CFA + 11 years Cat III AIF background is directly relevant
Key Risks / Concerns
- No track record: Brand-new strategy with zero performance history — all thesis is forward-looking
- Derivatives complexity: Can amplify losses significantly in high-volatility or trending markets
- TER at 2.25% ceiling: Expensive; performance must justify premium over passive alternatives
- Limited public track record: Mr. Saha joined Bandhan AMC only Sept 2025 — private AIF differs from SIF execution
- ₹10L threshold risk: Portfolio value dipping below threshold triggers forced rebalancing friction
- Overseas ETF pause: SEBI (March 2024) limits global diversification angle for now
11. ISID Deep-Dive: Restrictions & Framework
| Restriction | Limit / Detail |
|---|---|
| Unhedged Short Derivative Exposure | Max 25% of net assets in exchange-traded derivatives (SEBI circular Feb 27, 2025) |
| Single Issuer Debt Concentration | Max 20% NAV per single issuer (AAA); 16% for AA; 12% for A and below. Govt securities excluded. |
| Sector Concentration (Debt) | Max 25% of NAV in any single sector |
| Single Equity Exposure | No more than 10% of NAV in any single company. SIF collectively cannot own >15% of voting capital. |
| Gross Derivative Exposure | Cumulative must not exceed 100% of net assets. Option premium paid capped at 20%. No written options. |
| Borrowing Limit | Max 20% of net assets; for temporary liquidity needs only; max 6 months duration. |
| Short-Term Deposits | Max 15% across all banks (20% with Trustee approval); max 10% per bank; max 91 days. |
Interested in Arudha Equity Long-Short Fund?
NFO closes March 18, 2026. Speak with our team to understand if this strategy fits your portfolio.
Disclaimer: This analysis is prepared by SIFPrime Research for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Please read all scheme-related documents carefully before investing. The information presented is based on publicly available data from the Arudha SIF Scheme Information Document (SID), ISID, and Key Information Memorandum (KIM). Report Date: March 6, 2026.