JioBlackRock Asset Management launched the Prism Hybrid Long-Short Fund, a Specialized Investment Fund (SIF), on Monday, marking one of the first hybrid long-short offerings under Securities and Exchange Board of India's (Sebi) new SIF framework. The new fund offer opened on June 29 and closes on July 13, with an interval investment strategy that allows redemptions twice a week on Mondays and Wednesdays. The fund requires a minimum investment of ₹10 lakh, positioning it between traditional mutual funds and portfolio management services (PMS), and significantly lower than the ₹1 crore threshold for Alternative Investment Funds. According to Mint, of the 25 SIFs launched to date, 12 are hybrid, with Jio Blackrock's Prism Hybrid Long-Short Fund being the latest, as of data from SIF360.com.
The fund combines long equity positions with limited short exposure through derivatives while also investing across debt, merger arbitrage opportunities, collars strategy (options-based hedging technique), REITs, InvITs and other special situations. According to the fund house, the objective is to generate long-term capital appreciation along with income while aiming for better risk-adjusted returns and lower drawdowns during volatile markets. Hybrid long-short SIFs have delivered around 5.5% on average over the past three months (as of 25 June 2026), according to data from SIF360.com, a period marked by heavy market volatility due to the West Asia war-led rise in oil prices and global uncertainty. The fund can take unhedged derivative exposures up to 25% of total assets and will benchmark itself against the Nifty 50 Hybrid Composite Debt 50:50 Index. The fund will be available under direct and regular plans with growth options, with investors able to invest through lump sum, SIPs, STPs and SWPs.
The launch comes at a time when Indian equity markets have experienced heightened volatility, and wider dispersion across stocks and market capitalisations. As reported by The Hindu BusinessLine, against this backdrop, investors are increasingly seeking solutions that can generate returns across different market environments while managing downside risks more effectively. Bhavesh Jain, president and co-head, factor investing, Edelweiss Mutual Fund, noted that since the launch of SIFs, markets have largely been negative and volatile. As a result, most other categories launched in SIF strategies have underperformed. In contrast, hybrid SIFs, with their relatively conservative approach, have navigated this period more effectively and consequently delivered better returns. The fund house emphasized that the Prism Hybrid Long-Short Fund launch is aimed at offering institutional-quality investment capabilities to Indian investors, combining BlackRock's global systematic investing expertise with deep local market insights.
The asset manager believes prolonged market volatility, sharp sector rotation and uncertain interest-rate and geopolitical environments have increased investor demand for strategies that can generate returns without relying solely on rising equity markets. According to the presentation, hybrid long-short portfolios aim to maintain lower net equity exposure, use derivatives primarily for hedging and dynamically allocate across equities, arbitrage, REITs, InvITs and debt instruments to potentially reduce downside risk during market corrections. Hybrid strategies invest across arbitrage opportunities, fixed-income instruments, covered calls, options-based strategies, special situations such as open offers and buybacks, and a smaller allocation to short positions, as noted by Mint. Rishi Kohli, Chief Investment Officer, emphasized that the strategy combines equities, derivatives, fixed income and differentiated investment sleeves within a disciplined risk management framework. The fund targets low-to-moderate risk investors seeking absolute returns across market cycles.
A key advantage of hybrid SIFs is the 12.5% long-term capital gains tax after one year, compared to income or gains from traditional deposits or pure debt funds that are taxed at slab rates regardless of holding period. According to Mint, hybrid long-short strategies can vary significantly across schemes but primarily focus on delivering better risk-adjusted and post-tax returns compared to traditional fixed-income options like fixed deposits and bonds. The investment process combines human research with machine-learning models, alternative data and advanced analytics to identify investment opportunities while managing portfolio risk. Kohli explained that by actively managing both risk and opportunity, they seek to enhance risk-adjusted returns while reducing the impact of market volatility in a tax efficient manner. The company emphasized that Specialized Investment Funds represent an important evolution in India's investment landscape, offering access to sophisticated strategies within a transparent, SEBI-regulated framework.
