Mumbai: Summit SIF today announced launch of the Summit Active Asset Allocator Long-Short Fund (An interval investment strategy dynamically investing across equity, debt, equity and debt derivatives, InVITs and commodity derivatives, including limited short exposure on permitted instruments through derivatives).
Traditionally, arbitrage strategies have relied predominantly on opportunities arising from cash-futures spreads. However, as financial markets have evolved, opportunities can emerge across a wider set of instruments, asset classes and market situations.
Built around the philosophy of a multi-arbitrage approach, the Summit Active Asset Allocator Long-Short Fund seeks to combine multiple arbitrage opportunities within a single portfolio. While core arbitrage forms the foundation of the strategy, additional arbitrage opportunities across synthetic arbitrage, index arbitrage, commodity arbitrage and special situations seek to broaden the opportunity set.
The strategy is designed to capture available spreads while maintaining limited directional market exposure. By focusing on arbitrage opportunities rather than market forecasts, it seeks to offer investors a differentiated approach to deploying capital over a medium-term horizon. The strategy will be managed by Mr. Deepak Gupta and will be benchmarked to 40% Nifty 500 TRI + 40% CRISIL Short Term Bond Fund Index + 20% iCOMDEX Composite Index.
Speaking at the launch, Mr. Deepak Gupta, Fund Manager, said, “Arbitrage is often viewed primarily through the lens of cash-futures spreads. However, pricing opportunities can emerge across different markets, instruments and situations. The SIF framework gives us a wider canvas to explore such arbitrage opportunities through synthetic futures, indices, commodities and special situations, alongside conventional arbitrage.
Our focus with the Summit Active Asset Allocator Long-Short Fund is to build a broader set of potential return drivers without making directional market calls the foundation of the strategy. Core arbitrage will anchor the portfolio, while we will selectively deploy complementary strategies where we see attractive spreads. Equally important is risk discipline. We intend to pursue incremental return opportunities without taking disproportionate risk.”
The minimum investment amount during the NFO is ₹10,00,000/- and in multiples of ₹1/- thereafter. In case of Accredited investors, the minimum investment amount during the NFO is ₹1,00,000/- and in multiples of ₹1/- thereafter. For SIP investments, the minimum application amount is ₹1,000/- and in multiples of ₹1/- thereafter subject to maintaining investment threshold of ₹10,00,000 across all investment strategies of Summit SIF.
Subscriptions will be available daily at applicable NAV, while redemptions will be available twice a week, on Mondays and Wednesdays. In case Monday or Wednesday falls on a non-business day, then the immediately succeeding business day will be considered. The investment strategy will charge an exit load of 0.50% if units are redeemed or switched out on or before 30 days and 0.25% if units are redeemed or switched out after 30 days but on or before 60 days. No exit load will be charged if units are redeemed / switched out after 60 days.
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