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Long short funds in India is a mutual fund that invests in long-term assets while selling short-term securities (short). A long-short fund's purpose is to locate investments that are expected to rise in value and those that are expected to fall in value, and to invest in both in order to maximise returns.
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A brief introduction about long short funds www.avendus.com/india
What is the purpose of a long-short fund? Long short funds in India is a mutual fund that invests in long-term assets while selling short-term securities (short). A long-short fund's purpose is to locate investments that are expected to rise in value and those that are expected to fall in value, and to invest in both in order to maximise returns. . www.avendus.com/india
What is a long-only fund? Long-only funds look for investments that can provide growth, income, or a combination of both. Long-only funds often invest in firms that are undervalued in their opinion. Rather than avoiding pricey companies, long-short trading methods make money by betting against them. www.avendus.com/india
Is it risky to invest in long/short funds? Long/short funds are designed to maximise market upside while limiting risk on the downside. They might, for example, hold undervalued equities that the fund managers predict will rise in value while concurrently shorting overpriced stocks to limit losses. www.avendus.com/india
How do you approach putting together a long-short portfolio? You can get asset management companies in India to establish a portion of your portfolio that will ideally do well overall, but is expressly structured to profit in the event of market-wide losses, by adding a small amount of short exposure to your portfolio, based on firms or industries you believe are overvalued. Just proceed with caution. www.avendus.com/india
Is a long-short exchange-traded fund (ETF) available? At any given time, Long-Short ETFs may hold both long and short positions in a variety of asset types. These ETFs can be market neutral, with equal exposure to long and short positions, or severely split exposure, such as 130/30 ETFs, depending on the underlying aim of the fund. www.avendus.com/india
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