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The equity ex top 100 long-short fund category has gained attention within India's specialised investment fund market. As of 30 June 2026, the category had five schemes, 20,615 folios and assets under management of ₹2,764 crore. It also received net inflows of ₹753 crore during June 2026. (Economic Times)[
What is an Equity Ex Top 100 Long Short Fund?
An equity ex top 100 long short fund is a specialised investment fund strategy that primarily invests in companies outside the top 100 by market capitalisation.
It generally looks beyond the largest listed companies and focuses more on the broader equity market, including mid-sized and smaller companies.
The strategy can take:
How Does an Equity Ex Top 100 Long Short Fund Build Diversified Exposure?
The strategy combines investments across companies, sectors and market segments rather than relying only on a small group of large businesses.
Diversification Across Market Capitalisations
By investing beyond the top 100 listed companies, the fund can access businesses across the mid-cap and small-cap segments. These companies may operate in different industries and stages of development.Exposure to Emerging Growth Companies
Companies beyond the top 100 may include expanding businesses that are gaining market share or entering new industries. Such exposure may offer long-term growth opportunities, depending on the market and the company's financial performance.Short Positions to Help Manage Risk
The fund may create short exposure through derivative instruments when the manager expects certain stocks or indices to underperform. These positions may partly offset losses in the long portfolio during declining markets.Reduced Concentration Risk
A portfolio spread across several companies and sectors may be less dependent on the performance of a few large stocks. This can reduce concentration risk, but diversification cannot protect investors from broad market declines or strategy-specific losses.Dynamic Portfolio Management
The manager can adjust long positions, short exposure and sector allocations as market conditions change. This flexibility allows the portfolio to respond to valuations, company fundamentals and market trends.Key Features of an Equity Ex Top 100 Long Short Fund
The following features show how the strategy combines wider equity exposure with active risk management.
Invests Beyond Top 100 Companies
The portfolio primarily targets listed companies outside the top 100 by market capitalisation, providing exposure beyond the largest businesses.Long and Short Equity Positions
It combines conventional equity investments with limited short exposure through derivatives.Diversified Sector Allocation
The portfolio may invest across sectors such as manufacturing, consumer businesses, healthcare, technology and financial services, subject to the strategy's mandate.Active Fund Management
The fund manager actively selects securities and changes portfolio exposure based on research and market conditions.Uses Hedging Strategies
Derivatives may be used to hedge selected risks. Hedging can moderate some volatility, depending on the market, but it does not provide complete downside protection.Portfolio Rebalancing
Holdings may be reviewed and rebalanced when company fundamentals, valuations or risk conditions change.Potential Benefits of an Equity Ex Top 100 Long Short Fund
A SIF investment in this category may provide:
Who Can Consider an Equity Ex Top 100 Long Short Fund?
This strategy may be considered by informed investors who:
How Can the Apex Equity Ex Top 100 Long Short Fund Complement Your Portfolio?
The proposed Apex Equity Ex Top 100 Long Short Fund is an open ended/interval investment strategy investing in equity and equity related instruments including limited short exposure in equity through derivative instruments, of stocks other than large cap stocks.)
Its proposed mandate also permits the use of derivative instruments, including short exposure through unhedged derivative positions. The minimum application amount is ₹10 lakh and in multiples of Re. 1 thereafter subject to the minimum investment threshold guidelines as per the SIF framework.
The investment strategy may complement an existing large-cap or broad-market allocation by introducing exposure to companies outside the top 100. It may also add a different return driver through active long and short positioning.
However, the Apex Equity Ex Top 100 Long Short Fund should generally be evaluated as a satellite allocation rather than an automatic replacement for a diversified core equity portfolio.
Assess the Wider Opportunity Alongside the Risks
Investing beyond the top 100 companies can widen portfolio exposure, but it can also increase volatility and liquidity risk. The long-short structure adds flexibility while introducing derivative and fund-manager risks.
Blog Disclaimer:
The information herein is meant only for general reading purposes, and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data, and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision.
Mutual Fund Disclaimer:
Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision
SEBI Registration No. MF/020/94/8
FAQs
What is an Equity Ex Top 100 Long Short Fund?
It is a SIF strategy that primarily invests beyond the top 100 listed companies and may take limited short exposure.
How does an Equity Ex Top 100 Long Short Fund work?
It buys selected companies outside the top 100 and may use derivatives to short securities or manage portfolio risk.
What does "Ex Top 100" mean in mutual funds?
It generally refers to listed companies ranked below the largest 100 companies by market capitalisation.
How does the fund build diversified exposure?
It invests across multiple companies, sectors and market segments while combining long and short positions.
What are its potential benefits?
It may offer wider equity exposure, active risk management and reduced dependence on a few large companies.
Who should invest in Equity Ex Top 100 Long Short Funds?
It may suit experienced investors with a high risk tolerance and a long-term investment horizon.
How is the Apex strategy different from a traditional equity mutual fund?
It focuses beyond the top 100 and can use limited short exposure, unlike most conventional long-only equity funds.
Can Equity Ex Top 100 Long Short Fund help reduce concentration risk?
A broader portfolio may reduce dependence on large index stocks, but it cannot eliminate investment risk.
What should investors consider before investing in Equity Ex Top 100 Long Short Funds?
They should check risk, liquidity, derivative exposure, costs, investment horizon and the final investment strategy documents.
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