Long-short funds: Check if shorting aims to cut risk or boost returns
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that investors who prefer simple strategies should stay away from these funds. He suggested keeping them a small, non-core part of the equity portfolio, holding for three to five years, and waiting for a track record to build.
More of Abhishek's views on mutual funds
The article explains long-short equity funds launched under SEBI's specialised investment fund framework, which requires a minimum investment of ₹10 lakh. It describes how these funds take short positions through derivatives, the added risks when both long and short calls go wrong, and who they may suit.
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Long-short funds: Check if shorting aims to cut risk or boost returns