July 2026

SIF

MONTHLY EDITION

Fund Bytes
Specialized Investment Fund (SIF)
Table of Contents

01 Understanding the Equity & Hybrid strategies under SIF PG · 3

02 SIFs at a glance PG · 4

03 All about Altiva Hybrid Long-Short Fund PG · 5

04 Portfolio Snapshot & Commentary PG · 6

05 Hybrid Long-Short – Performance Snapshot PG · 8

06 All about Altiva Equity Ex-Top 100 Long-Short Fund PG · 10

07 Portfolio Snapshot, Fund Commentary & Performance

Highlight
PG · 11-12

08 SIF flows tracker – FY27 PG · 13

09 How will the SIFs be taxed? PG · 14

Fund Bytes · Specialized Investment Fund · June 2026 Strictly for internal consumption
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Understanding the Hybrid & Equity strategies under SIF

Hybrid Oriented
Investment Strategies

Hybrid Long-Short Fund:

➢ Interval investment strategy investing in equity and debt securities
➢ Min investment in equity and equity related instruments: 25%
➢ Min investment in debt instruments: 25%

Active Asset Allocator Long-Short Fund:

➢ An interval investment strategy dynamically investing across equity, debt, equity and debt derivatives,
REITs/InVITs and commodity derivatives incl. limited short exposure

Equity Oriented
Investment Strategies

Equity Long-Short Fund:

➢ An open ended/interval equity investment strategy
➢ Min investment in equity & equity related instrument: 80%

Equity Ex-Top 100 Long-Short Fund:

➢ An open ended/interval equity investment strategy
➢ Min investment in equity & equity related instrument of stocks excluding top 100 stocks by market
capitalization: 65%

Sector Rotation Long-Short Fund:

➢ An open ended/interval equity investment strategy
➢ Min investment in equity & equity related instrument of max 4 sectors: 80%
(Max short exposure of 25% shall apply at the sector level, covering all stocks within that sector held in the portfolio.)

Investment strategies with subscription and/or redemption frequency other than daily shall be classified as ‘Interval investment strategies’ for the purpose of SIF. For hybrid strategies, maximum
short exposure through unhedged derivative positions in equity and debt instruments: 25% .For equity strategies, maximum short exposure through unhedged derivative positions in equity and
equity related instruments: 25% 3
SIFs at a glance
From ~₹2,000 Cr AUM at launch to ~₹18,000 Cr in just 9 months — SIFs are off to a flying start

₹17,858 Cr 27 75,032 5,600+

Total distributors cleared
AUM (June 2026) Active Schemes Total Folios NISM XIII
Started at ₹2,010 Cr Started with 4 in Oct '25 Started with 10,212 Started with 2,000
↑ ~8.9x in 9 months ↑ ~7x in 9 months ↑ ~7.5x in 9 months ↑ ~2.8x in 9 months

Category Mix · June 2026 (AUM Breakdown by Strategy)

Hybrid Long-Short Fund 11,910

Equity Ex-Top 100 Long-Short Fund 2,764

Equity Long-Short Fund 2,225

Active Asset Allocator Long-Short Fund 913

Sector Rotation Long-Short Fund 46

Hybrid Long-Short Fund 9

3

Equity Long-Short Fund 9

3

Equity Ex-Top 100 Long-Short Fund 5

2

Active Asset Allocator Long-Short Fund 3

2

Sector Rotation Long-Short Fund 1

-

No. of funds live No. of funds filed

Source: AMFI. Data as on June 30, 2026. 4

All about Altiva Hybrid Long-Short Fund

An income-oriented strategy with arbitrage and fixed income as core strategies,

enhanced by selective opportunities in special situations and derivatives

Portfolio Construction

Cash-Future
Arbitrage & Arbitrage strategies aiming to capture low-risk returns
Covered Call
Core
Strategy

Fixed Income Invest in quality debt instruments aiming to generate

accrual and potential price appreciation

IPO, Open Offer, Buyback, Merger/Demerger, QIP,

Special Situation
Index inclusion/Exclusion etc.
Enhanced
Drivers

Derivative Long-Short equities, Straddle, Strangle, Put-call Parity

strategies etc.

Exposure to REITs & InvITs can also be considered basis fund manager discretion. The portfolio construction is based on current strategy; it may change considering the market environment. 5
Altiva Hybrid Long Short Fund - Portfolio Snapshot – Jun’26

Strategy Exposure (%)

Cash Future Arbitrage and Covered Call 37%

Fixed Income* 41%

Special Situation 0.4%

Other Derivative Strategies 6%

REITs / InvITs 4%

Others^ 12%

TOTAL 100%

Source: Internal | Data as on June 30, 2026 |*Includes T-Bill | ^Includes Cash & Net Current Asset/Liabilities. Market value + accrued interest considered for calculating Fixed Income exposure.

Fixed Income Allocation Yield to Maturity

7.85%

21%
Average Maturity

Debt Quants
1.84 years

12%
67% Macaulay Duration
1.74 years

Modified Duration
AAA & SOV AA+ AA 1.62 years

Source: Internal | Data as on June 30, 2026. Debt quant is excluding T-Bill. 6
Fund Commentary – Jun’26

In June, deployment within the fund remained aligned with the continued growth in AUM, while maintaining a strong
focus on portfolio quality, liquidity, and capital preservation. Fixed-income exposure continued to be anchored in high-
1 quality instruments, although allocation moderated during the month as blended YTM softened to ~7.9%. Surplus cash
was actively managed through Treasury Bills, ensuring efficient liquidity management while preserving flexibility for
tactical allocations across equities and derivatives.

Exposure to cash–future arbitrage and covered call strategies moderated to ~37%, reflecting a compression in spreads,
with arbitrage opportunities becoming relatively less attractive. Despite the reduction, these strategies continue to
offer attractive carry, with cash future arbitrage spreads of ~7% and covered call spreads of ~10–12%. Allocation to
2
derivative strategies, including straddle and strangle positions, reduced to ~6%, as markets remained largely in a risk-on
environment. Deployment remained selective, focused on sectors and stocks where sufficient volatility was available to
monetize opportunities while maintaining a disciplined risk framework.

Special situations—including merger arbitrage, open offers, QIP, block and selective IPO opportunities—remained
muted during the month, with limited opportunities to deploy capital. The fund maintained exposure to REITs and
3 InvITs at ~4%, supported by their predictable cash flows and attractive relative yields. Overall, the portfolio positioning
continues to emphasize carry-oriented and market-neutral opportunities while retaining sufficient liquidity and
flexibility to capitalize on emerging opportunities across asset classes

Turning to performance, market volatility has remained elevated over the past nine months, resulting in a negative
annualized return of ~ -10% for the Nifty 50 TRI, In contrast, the fund has generated an annualized return of ~12%, with
significantly lower volatility. The fund continued to demonstrate resilience in June’26, delivering a return of +1.37%,
broadly in line with the Nifty 50 TRI's +1.67%. The fund's defensive characteristics continue to be evident across market
4
cycles. During the sharp market decline of -11.30% in March’26, the fund declined just -1.54%, while continuing to
participate in subsequent market recoveries. Since inception, the strategy has delivered a favourable balance between
capital preservation and return generation, achieving substantially lower volatility than broader equity markets while
continuing to compound investor capital steadily.

“
AT A GLANCE (As on Jul 17, 2026) Efficient risk management led to significantly
lower drawdowns in Mar’26
Since inception, the Nifty delivered ~–7% annualized, Nifty 50 TRI Fund – Reg (G)
while our fund generated ~+11% with low volatility. -11.30% -1.62%

Source: Internal 7
Hybrid Long-Short – Performance Snapshot

Altiva Apex
Arudha Magnum iSIF Titanium qsif
(Edelweiss (Aditya Birla
(Bandhan MF) (SBI MF) (ICICI MF) (Tata MF) (Quant MF)
MF) MF)
Inception
28-Jan-2026 20-Oct-2025 25-Mar-2026 20-Oct-2025 04-Feb-2026 11-Dec-2025 15-Oct-2025
Date

Return Income +
Arbitrage + ESF + ESF + BAF + BAF + BAF +
Profile Arb

AUM (in Cr) 109 5,599 81 3,647 927 573 170

Risk Band Risk-Level 1 Risk-Level 1 Risk-Level 1 Risk-Level 1 Risk-Level 5 Risk-Level 3 Risk-Level 3

1 Month 0.79% 1.13% 1.27% 1.24% 1.92% 0.97% 2.16%

3 Months 1.81% 3.67% 2.74% 3.31% 2.92% 2.35% 3.85%

Absolute
Returns (%)
6 Months - 5.30% - 2.91% - 1.21% 7.79%
Since
3.16% 8.29% 3.46% 4.83% 3.07% 1.53% 6.60%
Inception

1 Month 9.63% 13.79% 15.47% 15.04% 23.40% 11.78% 26.28%

3 Months 7.24% 14.72% 11.01% 13.26% 11.69% 9.42% 15.45%

Annualized
Returns (%)
6 Months - 10.62% - 5.84% - 2.43% 15.63%
Since
6.78% 11.21% 11.09% 6.53% 6.87% 2.62% 8.75%
Inception

1 Month 1.03% 2.24% 2.53% 3.46% 9.22% 5.65% 7.14%

Volatility 3 Months 1.10% 2.60% 2.85% 3.45% 10.31% 6.69% 6.49%

(Annualized
SD) 6 Months - 3.95% - 3.95% - 9.64% 6.54%
Since
1.12% 3.41% 2.64% 3.67% 13.64% 9.03% 6.07%
Inception

Source: AceMF | AUM as on 30th June 2026 | Past performance may or may not be sustained in the future. 8
Hybrid Long-Short – Performance Snapshot
Monthly Performance
NIFTY 50
Hybrid
Nifty 50
Months Arudha Altiva Apex Magnum iSIF Titanium QSIF Composite
TRI
Debt 50:50
Index
Nov-25 - 0.94% - 1.18% - - -0.51% 1.92% 1.11%
Dec-25 - 1.61% - 0.89% - - -0.21% -0.28% -0.19%
Jan-26 - 0.05% - -0.90% - -1.17% -1.41% -3.04% -1.66%
Feb-26 0.74% 0.64% - 0.71% - 1.28% 0.37% -0.51% 0.11%
Mar-26 0.08% -1.62% - -2.22% -7.42% -7.02% -1.04% -11.30% -6.34%
Apr-26 0.35% 3.10% 0.30% 2.22% 7.32% 5.35% 6.79% 7.49% 3.92%
May-26 0.16% 1.06% 0.40% 0.61% -0.10% 0.41% -1.15% -1.72% -0.82%
Jun-26 1.58% 1.28% 1.81% 1.31% 2.87% 1.81% 1.49% 1.67% 1.98%
Jul-26 MTD 0.22% 0.85% 0.72% 1.01% 1.45% 0.71% 1.77% 2.06% 0.99%
Source: AceMF | *MTD data as on July 17, 2026 | Performance for Regular (G) funds | Past performance may or may not be sustained in the future.

Risk management is key in SIF in while generating returns in the long term
Max DD in any single month

-0.25%
-2.22% -1.96%
-2.66%

-6.34%
-7.42% -7.02%

-11.30%
NIFTY 50 TRI iSIF Hybrid Titanium NIFTY 50 Qsif Hybrid Magnum Altiva Hybrid Arudha Hybrid
Long-Short Hybrid Long- Hybrid Long-Short Hybrid Long Long-Short Long-Short
Fund Short Fund Composite Fund Short Fund Fund Fund
Debt 50:50
Index
Source: AceMF | Data as on July 17, 2026 | Performance for Regular (G) funds | Past performance may or may not be sustained in the future | Funds which have completed 5 months have been
considered. Full month drawdown considered in the above graph. 9
All about Altiva Equity Ex-Top 100 Long-Short Fund

A high conviction mid & small cap portfolio

↑ ⊕ # ⇄ ⊖
Fund positioning SMID Universe Portfolio Stocks SMID Allocation Others*

SMID-cap 101–750 35–45^ 90–100% 0–10%

A Flexicap approach to By Market Cap Rank Concentrated portfolio Flexi SMID allocation Return enhancer,
invest across mid and to drive alpha Risk management &
small cap stocks capital efficiency

Product Why Us?

Positioning

Backed by 15+ years of SMID

35–45 stock portfolio with 90–100%
investing experience and a disciplined
SMID exposure, aiming for midcap+
focus on high-quality growth
risk-return payoff Altiva SIF businesses across cycles.

SMID Strategy
A differentiated SMID strategy
positioned between mutual funds
and PMS, with a focused
SMID high-conviction portfolio. Why Now?
Opportunity

SMIDs are a multi-bagger breeding SMID valuations have corrected

ground, with high-growth sectors sharply from peak levels, creating an
providing alpha generation attractive entry opportunity.
opportunities beyond large caps

Note: The portfolio construction is based on current strategy; it may change considering the market environment | SMID – Small & Mid Cap; *Includes Derivatives, Cash, Large cap. ^long positions 10
Altiva Equity Ex-Top 100 Long-Short Fund – Portfolio Snapshot

Top 10 Stocks (%)

Name of Instrument Weight (%) Name of Instrument Weight (%)

Radico Khaitan Ltd. 3.68 360 One WAM Ltd. 3.25

Billionbrains Garage Ventures Ltd. 3.66 ICICI Lombard General Insurance Co Ltd. 3.24

Bharat Dynamics Ltd. 3.60 HDFC Bank Ltd. 3.11

JSW Infrastructure Ltd. 3.55 Neuland Laboratories Ltd. 3.05

Bharti Hexacom Ltd. 3.41 Emmvee Photovoltaic Power Ltd. 2.99

Top 10 Sectors (%) Market Cap Allocation (%)

Market Cap (%)

Financials 28.0
Capital Goods 11.4
12
Healthcare 9.7
Auto 7.3
FMCG 4.7
56 32
Technology 4.6
Cons. Durables 3.8
Services 3.6
Cons. Services 3.4
Telecom 3.4 Large Cap Mid Cap Small Cap

Portfolio Quants

FY27E FY28E FY27E FY28E PE PE

PEG (x)
EPS growth (%) EPS growth (%) ROE (%) ROE (%) FY27E (x) FY28E (x)
24.91 24.00 0.83 18.48 19.51 25.10 20.24

Source: Bloomberg, Internal Research. Data as on June 30, 2026. 11

Portfolio commentary – Jun’26

The portfolio has been constructed through a disciplined bottom-up investment process, staying true to the framework
outlined at the time of the launch of the fund. The strategy seeks to capture long-term wealth creation opportunities
1
across the mid- and small-cap universe by identifying businesses with strong earnings visibility, improving return
profiles, and attractive valuations that offer potential for both earnings compounding and valuation rerating.

2
While the NSE 500 index remains the guiding benchmark universe, the portfolio has been constructed from a much
2 larger stock universe. There is enough representation of stocks from the NSE 500 index but there are a select few off-
index opportunities that have been identified due to their strong growth potential.

Sector positioning is aligned with structural themes expected to benefit from India's evolving economic landscape,
3 including capital markets, data centers, semiconductors, renewables, digital platforms and other niche growth
segments.

The portfolio currently maintains a higher allocation towards small-cap opportunities, reflecting the team's ability to
identify scalable businesses at an earlier stage of their growth cycle, while adhering to a quality bias through
4
investments in profitable companies with strong fundamentals and healthy forward return metrics. Cash levels are
temporarily elevated due to month-end flows and is expected to return within mandate limits.

Portfolio construction remains anchored in balancing growth, valuation discipline and risk management, with a focus
5 on generating superior risk-adjusted absolute returns through high-conviction stock selection, differentiated ideas and
a long-term investment horizon.

Performance

Period Altiva – Reg (G) NIFTY 500 - TRI Nifty MidSmallcap 400 - TRI

1 Month 3.76% 1.21% 1.61%

Since Inception 7.62% 5.52% 5.80%

Source: AceMF | Absolute Returns as on July 17, 2026 | AUM as on June 30, 2026 | Performance for Regular (G) funds | Since Inception considers the data from inception date of
Altiva Equity Ex-Top 100 Long-Short Fund, i.e., June 08, 2026 | Past performance may or may not be sustained in the future. 12
SIF Flows tracker - FY27

Altiva Hybrid Long-Short Fund has seen the strongest investor inflows across SIF
categories, ahead by a notable margin
Hybrid Long-Short FY27 Flows (Cr.)

2,132

183 114 58 52 42 15

Altiva iSIF Magnum qSIF Titanium Arudha Apex

Equity Long-Short FY27 Flows (Cr.) Ex-Top 100 Long-Short FY27 Flows (Cr.)
542
52 50

46
-43

qSIF Arudha Diviniti qSIF iSIF

Source: AceMF | Data as on June 30, 2026 | Funds which have completed at least 2 months as on May 31, 2026, have been considered. 13
How will the SIF be taxed?

Please consult tax advisor for better understanding and taxation applicable to specific investments. Above tax rates are excl. applicable cess & surcharge. ^Other listed securities held for more than 12 months
will be considered as long term capital asset.

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Thank You