HSBC MF’s RedHex Hybrid Long-Short Fund crosses ₹1,000 crore AUM within two months of launch

HSBC Mutual Fund’s RedHex Hybrid Long-Short Fund has crossed ₹1,000 crore in assets under management (AUM) within two months of its launch, highlighting the early investor interest in the newly introduced Specialised Investment Fund (SIF) category.

The fund, launched in June 2026, had around 1,950 unique folios as of August 25, according to HSBC Mutual Fund. The fund house said the AUM and folio figures are as of August 25 or the latest available data.

RedHex follows a multi-asset strategy, investing across fixed income, equity arbitrage, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). It is benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index.

The fund combines fixed-income investments with equity arbitrage and exposure to REITs and InvITs, giving the portfolio a broader set of avenues for generating returns while managing market exposure.

A new category for flexible strategies

The ₹1,000-crore milestone comes at an early stage for the SIF segment in India. The category was introduced by the Securities and Exchange Board of India (SEBI) to give asset managers greater flexibility in portfolio construction while keeping the products within the mutual fund regulatory framework.

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SIF strategies can offer wider asset allocation and limited short exposure through derivatives, subject to the applicable investment strategy and regulatory limits.

RedHex is among the SIF products launched by asset managers since the category was introduced. Its portfolio approach differs from conventional hybrid funds by combining fixed income with arbitrage and exposure to REITs and InvITs.

Positioned for mid-ticket investors

The product is positioned as an investment option between conventional mutual funds and more sophisticated investment strategies. It combines the regulatory framework and transparency of mutual funds with greater flexibility in portfolio construction.

RedHex requires a minimum investment of ₹10 lakh, with investments thereafter in multiples of Re 1. For Accredited Investors, the minimum application size is ₹1 lakh, with subsequent investments in multiples of Re 1.

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The fund’s strategy is designed to allow the investment team to adjust allocations depending on market conditions. This flexibility can help the portfolio respond to changing market environments while maintaining a focus on risk management.

The fund house has also highlighted its focused approach, allowing the portfolio to take positions across specific opportunities rather than following a conventional diversified hybrid-fund structure.

However, the ₹1,000-crore AUM milestone reflects the amount of assets accumulated by the scheme and should not be interpreted as a measure of investment performance. Since the fund has only been in operation for two months, its ability to generate returns and manage risk will become clearer as it develops a longer track record across different market conditions.

The early AUM milestone nevertheless signals growing investor interest in specialised investment strategies as the SIF category begins to develop in India.

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