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A long-short fund is a form of hedge or type of mutual fund that invests in all types of funds which include both short and long positions in certain specific market segments.
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Advantages of long short funds www.avendus.com/india
Long-Short funds A long-short fund is a form of hedge or type of mutual fund that invests in all types of funds which include both short and long positions in certain specific market segments. These funds frequently employ a variety of unconventional investing strategies, including leverage, derivatives, and short positions, to buy inexpensive securities and sell overvalued ones. www.avendus.com/india
Basic about long-short funds Long/short funds actively take both long and short positions in securities in order to increase the returns from investing in a certain market area. To identify portfolio holdings, long/short funds employ a variety of active management approaches. They may also employ leverage, swaps, and short positions, all of which raise the fund's risk and potential total return. www.avendus.com/india
Benefits of long-short funds Long/short funds might be an excellent choice for investors looking for tailored index exposure combined with active management. Long/short funds also provide protection against changing market conditions and other trends that active management cannot account for. We believe that the flexibility and structure of long-short funds can help mutual funds and PMS manage their diminishing alpha and client experience challenges. Long-short funds, like PMS, are not limited to a specific asset mix or minimum equity proportion. They also feature two additional degrees of freedom. www.avendus.com/india
Hidden advantage Long-short methods improve the likelihood of realising short-term losses, which are especially advantageous because the short-term capital gains tax rate is much higher than the long-term rate, and realised short-term losses will be utilised to offset heavily taxed short-term capital gains first. www.avendus.com/india
Long short funds in India Long-short funds are a new concept in the arena of asset management in India. This category of long-short funds has been launched by almost 35 managers across India during the past 7 years. Top asset management companies in India such as Avendus, DSP, IDFC, Edelwesiss, ICICI & Tata hold and manage an estimate of 12,000 crore in the field of long-short funds. www.avendus.com/india
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