Dissecting Long-short Funds

1. Dissecting Long-short Funds www.avendus.com/india

2. What is a Long-Short fund? These bi-directional funds have multiple ways of bringing in money for the investors using long-term and short-term investing techniques . www.avendus.com/india

3. Advantages of Long-Short funds Diversified Investment: HNIs seeking diversification in their portfolios have a fantastic opportunity to invest in Long Short funds. This is also recommended by top asset management organizations in India since it ensures portfolio stability and protects against market or economic downturns. . www.avendus.com/india

4. Excess Returns Long-Short funds provide a potential to profit from both falling and rising markets because they don't just rely on the market moving up. Investors seeking higher returns will find volatility to be a helpful ally. It does, of course, come with a bigger portfolio risk. www.avendus.com/india

5. Disadvantages associated with Long Short funds High Expense ratio: In general, the expense ratio in the case of standard Mutual funds hovers around the 0.60 percent levels, but in the event of a Long short fund, the expense ratio increases up to 2 percent levels. This, in turn, has an impact on investors' final returns. www.avendus.com/india

6. Low return in a range-bound market A directional view is used to enter a long or short position in the market. Range-bound or bumpy markets are likely to give investors very low to minimal returns because this fund has both long and short positions in the market (in the Long Short fund). www.avendus.com/india

7. Thank You www.avendus.com/india