HSBC Mutual Fund has launched RedHex Hybrid Long-Short Fund, a Specialised Investment Fund (SIF) strategy designed for investors seeking regular returns and capital appreciation. The strategy combines investments across asset classes - fixed income, equity arbitrage, InvITs and REITs to pursue risk-adjusted returns across market cycles. The new fund offer, or NFO of the fund, is open for subscription and will close on June 16.Also Read | Quant Mutual Fund bets on under-owned, under-researched, undervalued and neglected territory stocks for alpha generation The performance will be benchmarked against NIFTY 50 Hybrid Composite Debt 50:50 Index and will be managed by Shriram Ramanathan (Debt portion, InvITs and REITs), Venugopal Manghat (Equity), Praveen Ayathan (Arbitrage) and Mayank Chaturvedi (Foreign securities).RedHex Hybrid Long-Short Fund offers an intermediate investment that combines the regulatory transparency of mutual funds with portfolio flexibility. The product is suited to ‘mid-ticket’ investors, with a minimum application of Rs 10 lakh and in multiples of Re 1 thereafter (Rs 1 lakh and in multiples of Re 1 thereafter for Accredited Investors).“Investors today are more aware and require unique solutions that are professionally managed and built to navigate complex market conditions. RedHex Hybrid Long-Short Fund is designed as a practical middle ground - offering the clarity investors expect from mutual funds, with added flexibility of a product which is designed to be less volatile while giving superior, tax-efficient risk-adjusted returns,” said Kailash Kulkarni, CEO, HSBC Mutual Fund.If the units are redeemed/ switched out on or before one year from the date of allotment, an exit load of 2% of the applicable NAV will be applicable. If the units are redeemed/switched out after one year from the date of allotment, the exit load will be nil The fund strategy aims to deliver strong accrual potential with relatively low volatility through a diversified allocation across asset classes designed to generate regular income with limited sensitivity to market swings, while also enhancing tax efficiency and risk-adjusted returns. Structured as an interval investment fund, it allows subscriptions on any business day and offers weekly redemptions. Underpinning all this is robust risk management, combining active portfolio management with strict strategy-level risk controls to help reduce volatility.Also Read | Multicap vs flexicap mutual funds: Which is better placed amid market volatility? “Our focus is on robust credit selection and risk controls, aiming to deliver high accrual potential with lower volatility across market cycles. In a measured way, the fund also aims to take exposure to REITs and INVITs, both of which are growing asset classes,” said Shriram Ramanathan, CIO Fixed Income, HSBC Mutual Fund. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.