Kotak Mahindra Mutual Fund has launched the New Fund Offer (NFO) for the Infinity Hybrid Long-Short Fund, a unique addition to its Specialized Investment Fund (SIF) category. Open from June 15, 2026, to June 29, 2026 , and reopening by July 09, 2026.
Managed by Kotak Mahindra Asset Management Company Ltd , this strategy aims to deliver long-term capital growth and income. It achieves this by dynamically investing across equity and debt instruments while taking limited short exposure through derivatives to manage market cycles.
Infinity Hybrid Long-Short Fund NFO Details
Parameter | Details |
|---|---|
Fund Name | Infinity Hybrid Long-Short Fund |
Fund Type | An Interval investment strategy |
Category | Hybrid Long-Short Fund |
Benchmark | NIFTY 50 Hybrid Composite debt 50:50 Index |
Fund Managers | Mr. Hiten Shah & |
NFO Open Date | June-15-2026 |
NFO Close Date | June-29-2026 |
Allotment/Reopening Date | July-09-2026 |
Minimum Investment | ₹10,00,000 |
Accredited Investor | ₹1,00,000 |
Additional Investment | ₹10,000 |
SIP | ₹10,000 |
NAV | ₹10 |
Stamp Duty | 0.005% |
Entry Load | Nil |
Exit Load | Nil |
Company Details
Parameter | Details |
AMC Name | Kotak Mahindra Asset Management Company Ltd |
AUM | ₹6,15,558 Crores |
Website | |
Address | 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400051 |
Contact Number | 18003091490 / 044-40229101 |
Source line: AMFI India New Fund Offer
What has Kotak Mahindra Mutual Fund launched?
Kotak Mahindra Mutual Fund has introduced the Infinity Hybrid Long-Short Fund, an interval investment strategy under its newly established Specialized Investment Fund (SIF) platform.
It is the first strategy within the Hybrid Investment Strategies category launched by Infinity SIF. The fund aims to provide capital appreciation and regular income generation by maintaining a balanced asset mix while simultaneously utilizing derivatives to manage market exposure.
How does the strategy work?
The strategy operates by dividing its assets dynamically between equity instruments, fixed-income products, and alternative assets. Unlike standard mutual funds that only profit when prices rise, this strategy can establish “short” positions.
Shorting involves using financial derivatives to profit from declining prices or to safeguard existing investments against downward market trends.
The asset allocation framework under normal circumstances is structured as follows:
Step | Asset Class / Tool | Allocation Limit | Purpose |
1 | Equity & Equity Related Instruments | 35% to 75% | Captures growth potential from listed shares across different market capitalizations. |
2 | Debt & Money Market Instruments | 25% to 65% | Focuses on stable income generation through bonds, commercial papers, and treasury bills. |
3 | Infrastructure Investment Trusts (InvITs) | 0% to 20% | Provides alternative exposure to infrastructure assets for regular cash flow potential. |
4 | Unhedged Short Derivative Positions | Up to 25% | Used by the fund manager to benefit from negative stock or sector trends. |
5 | Overseas Securities / Foreign Funds | Up to 35% | Enhances diversification across geographical boundaries and different currencies. |
Let’s see through an example
Suppose the fund has an Asset Under Management (AUM) of ₹100 crore. If the fund manager turns bearish on the IT sector but remains optimistic about general equity markets, they might allocate ₹70 crore into multi-cap equity shares.
Simultaneously, to neutralize potential downsides, they can use derivative contracts to short sell IT sector futures worth ₹10 crore without buying the underlying shares. This unhedged short exposure directly helps the fund cushion capital erosion if the IT index drops, adjusting the net operational exposure of the entire portfolio.
Potential Benefits
Potential Benefit | Why does it matter? |
Downside Risk Management | Utilizing derivatives like put options and short futures helps reduce potential losses during volatile market declines. |
Asset Class Diversification | Spreading capital across equity, debt, overseas assets, and InvITs lowers reliance on any single market segment. |
Flexibility via Interval Structure | Offers liquidity by allowing standard purchases on every business day while managing redemptions efficiently twice a week. |
Absolute Return Potential | Limited shorting capability allows the fund manager to extract value from overvalued stocks or failing sectors. |
What are the key risks?
Risk | What does it mean? |
Derivative Strategy Risk | Derivative instruments involve leverage; incorrect projections by the fund manager can lead to disproportionate losses. |
Unhedged Short Positions Risk | Strategies involving short positions carry the inherent risk of theoretically unlimited losses if asset prices surge unexpectedly. |
Credit and Default Risk | Debt securities carry the risk that the borrower may fail to pay interest or repay the principal capital on time. |
Liquidity and Settlement Risk | Unlisted corporate debt, certain options, and InvIT units may exhibit thin trading volumes, delaying entry or exit execution. |
Regulatory Threshold Restriction | Investors face residual transaction risk if partial redemption pushes their total PAN-level investment below the INR 10 lakh threshold. |
Who may consider this fund?
Investor Type | Why |
High-Net-Worth Individuals (HNIs) | Suited for investors who can meet the mandatory high investment entry threshold of INR 10 lakh at the PAN level. |
Sophisticated Long-Term Investors | Individuals seeking regular hybrid asset diversification coupled with non-traditional long-short active strategies. |
Accredited Investors | Eligible individuals with valid accreditation who want to enter specialized structures with a lower entry barrier of INR 1 lakh. |
Who may not find it suitable?
Investor Type | Why |
Retail Investors with Small Capital | The rigid ₹10 lakh minimum application requirement disqualifies standard small-ticket retail participants. |
Conservative or Risk-Averse Investors | The fund engages in active derivative writing, shorting, and complex options strategies that elevate the overall portfolio risk band. |
Short-Term Speculators | The interval redemption mechanism limits exits to twice a week (Mondays and Wednesdays), making it unfit for immediate daily cash needs. |
Infinity Hybrid Long-Short Fund vs Traditional Investment Options
Investment Option | Return Potential | Risk | Complexity |
Fixed Deposit | Fixed and guaranteed, but lower over the long term. | Extremely Low (practically risk-free up to structural limits). | Very Simple |
Debt Mutual Fund | Moderate (tied to prevailing market interest rates). | Low to Moderate (subject to interest rate and credit shifts). | Moderate |
Hybrid Mutual Fund | Balanced (linear asset blend matching long positions). | Moderate (varies with equity allocation size). | Moderate |
Equity Mutual Fund | High (correlated strictly to equity indices performance). | High (exposed fully to market corrections). | Moderate |
Infinity Hybrid Long-Short Fund | High absolute return potential through long-short flexibility. | High (involves active derivative tracking and unhedged shorts). | High (requires understanding of options and interval cycles). |
Zenith Finserve’s Review
The Infinity Hybrid Long-Short Fund presents an institutional-grade investment framework packaged into an interval mutual fund structure. The fund attempts to smooth out the typical volatility observed in traditional pure equity products by combining long equity positions with structural debt security exposure and tactical derivative shorting.
However, the inclusion of unhedged short exposures up to 25% means that the fund manager’s directional calls are critical; any operational miscalculation can result in downside performance even when the broader market is rising.
Potential participants must prioritize their individual risk profile, target financial goals, and existing asset placement over pure historical return expectations.
Given the mandatory PAN-level entry threshold of ₹10 lakh and the specific twice-a-week redemption window, this product is distinctly structurally unique.
It is best suited for seasoned investors who possess a long-term investment horizon and require an active alternative overlay to complement their existing core traditional holdings.
How can Zenith Finserve help?
Zenith Finserve assists eligible investors in evaluating how alternative, sophisticated products line up against their comprehensive wealth maps.
We offer deep-dive asset mapping to ensure your portfolio can accommodate the specific liquidity cycle of an interval fund without jeopardizing short-term operational cash requirements.
Our team simplifies the complexities of the PAN-level minimum investment architecture and guides accredited wealth holders through the formalized validation processes required to access specialized institutional frameworks seamlessly.
Frequently Asked Questions (FAQs)
What is the minimum amount required to invest in this NFO?
During the New Fund Offer, the minimum application amount is ₹10,00,000 and in multiples of Re. 1 thereafter across all investment strategies of the Infinity SIF at the PAN level.
Is there a lower entry limit for accredited investors?
Yes, accredited investors benefit from a reduced minimum application threshold of ₹1,00,000 and in multiples of ₹1 thereafter during the NFO and ongoing continuous offer basis.
How frequently can I redeem my money from this fund?
The fund operates as an interval strategy and offers redemption or switch-out processing twice a week, specifically on Monday and Wednesday of every week before 3:00 PM.
What happens if my investment balance drops below INR 10 lakh due to a market crash?
Passive breaches caused strictly by a decline in the fund’s Net Asset Value (NAV) are not treated as violations. However, if your total value drops below the threshold due to a passive market breach, you will only be permitted to redeem your entire remaining investment from the SIF.
Does the fund charge an exit load when I withdraw my investment?
No, there is no exit load charged under this strategy. Any switches made between different options or plans within the fund are also free of exit loads.
What are unhedged short derivative positions?
These are derivative trades (like selling futures or writing call options) executed without holding the actual underlying physical securities. They allow the fund manager to generate active returns or hedge risks if a specific stock or sector drops in value.
Can the fund invest in international markets or foreign mutual funds?
Yes, the fund manager is permitted to allocate up to 35% of the strategy’s net assets into foreign securities, overseas mutual fund schemes, or overseas Exchange Traded Funds (ETFs).
How is the daily Net Asset Value (NAV) of the fund disclosed to investors?
The NAV is computed daily and published on every business day on the AMFI portal and the Infinity SIF website by 11:00 PM. If the fund invests in overseas markets, the timeline is adjusted to 10:00 AM of the following business day to account for foreign price feeds.
