New Delhi, Aug. 5 -- Hybrid long-short strategies under the newly launched Specialised Investment Funds (SIFs) are beginning to challenge popular mutual fund categories such as arbitrage funds and balanced advantage funds (BAFs).

Fund houses are increasingly marketing these products as "arbitrage-plus" or "balanced advantage-plus" offerings, giving more flexibility and higher returns than the previously mentioned traditional mutual fund categories.

If the trend gathers pace, hybrid SIFs may challenge the Rs.3.44 trillion arbitrage mutual fund category and the Rs.2.54 trillion BAF category, say experts.

A section of corporates and retail investors is already moving their money from arbitrage and BAF funds into hybrid SIFs, multiple dist...