Mumbai  : Karvy Capital has launched an open ended hedge fund ‘Systematic Edge fund’ and expects to raise about Rs 100 crore in the next two months.

A category III fund under SEBI’s Alternative Investment Fund Guidelines, it is targeted at high net worth individuals and institutions.

The fund will invest in futures and options of equity stocks and indices – taking both long and short positions reducing dependence on overall market direction. This multi-strategy absolute returns hedge fund targets to deliver positive returns across all equity market scenarios.

Swapnil Pawar, Chief Investment Officer of Karvy Capital, said: “Our approach draws a lot from the principles of behavioural finance. We are continuously looking for market inefficiencies in the form of predictabilities. When we spot them, we build systematic strategies to use them to deliver absolute returns. By diversifying our investments across a large number of small trades across multiple strategies, we are able to contain risk on the one hand and achieve diverse sources of returns on the other.”

Income from this fund will be treated as business income and would be taxed at 30.6 per cent.

Source : Sachin Murdeshwar