A hybrid long-short fund is an interval investment strategy which invests in equity, debt, arbitrage, and derivatives while taking both long and short positions to reduce market risk and potential to generate stable returns.

It combines directional equity (0–40%), arbitrage, debt, and derivatives flexibility, whereas arbitrage funds are market-neutral and equity savings funds have limited directional exposure.

The fund targets low volatility with minimal negative 6-month rolling returns, supported by arbitrage and debt allocation with controlled net equity exposure.

The recommended investment horizon is more than 18 months to allow the long-short and derivatives strategies to play out across market cycles.

HNI investors seeking tax-efficient, low-volatility hybrid returns and an alternative to arbitrage or equity savings funds may consider this strategy.