View on the Fund

Arudha Hybrid Long–Short Fund follows an approach broadly similar to arbitrage-plus–fixed income strategies available in mutual funds. The strategy does not employ complex derivative-based structures, resulting in limited differentiation versus existing MF offerings. However, this also implies low incremental risk. From the AMC’s perspective, the strategy appears to leverage Bandhan’s core fixed-income strengths while allowing a measured entry into the SIF framework. As such, investors looking to take an initial, low-risk exposure to the SIF structure may consider this fund, while recognising its limited differentiation and early-stage nature

Strategy

Income + Arbitrage Strategy

Fund's Strategy View

Arudha Hybrid Long Short functions primarily as a fixed income + arbitrage strategy, with no directional equity exposure. - **Equity Exposure** (35-65%): maintained through fully hedged equity positions (arbitrage/derivative) - **Debt Allocation (at most 65%)**: Primary allocation to short- to medium-term debt and money market instruments (1-4 years target duration) - Portfolio is predominantly invested in sovereign and AAA-rated securities - Limited exposure of up to ~10% to AA+/AA credits to enhance portfolio yields.

Fund Performance

We refrain from evaluating the fund since it is yet to mature (less than 5 years).

View on AMC

We maintain a cautious view on the SIF arm of Bandhan Mutual Fund. While the SIF structure offers access to more sophisticated investment strategies, it is still new and lacks a meaningful track record to fully assess its effectiveness. Bandhan brings strong fixed-income expertise to the platform, while its equity capabilities are still in the process of being built at the AMC level. Given this, we prefer to wait and observe how the SIF platform evolve before forming a stronger conviction.

AMC's Pedigree

Arudha SIF is housed within Bandhan Mutual Fund, an AMC that has steadily scaled its presence in the Indian mutual fund industry, with particular strength in fixed income and a growing equity platform. While the SIF structure itself is new, its credibility is underpinned by Bandhan AMC’s strong debt credentials and its conservative underwriting approach, which helped it navigate periods of market stress such as the IL&FS crisis and the COVID-19 disruption

AMC Team

Arudha SIF platform leverages Bandhan AMC’s existing investment bench rather than operating as a standalone, single-strategy unit. Historically, Bandhan has had strong depth in fixed income, while its equity capabilities were relatively limited; however, the AMC has recently strengthened its equity team to build greater depth and capability in this area

Investment Philosophy

Arudha SIF does not adhere to a single overarching investment philosophy at the AMC level, instead employing frameworks designed on a strategy-specific basis. Given that the SIF platform is still new, the AMC is in the process of establishing and refining its operating and investment frameworks within this structure