New Delhi, April 30 -- For decades, long-only equity funds have been the default vehicle for wealth creation. Their proposition is simple: stay invested, ride the economic cycle, and allow compounding to do the heavy lifting.

While this approach works over very long horizons, it comes with a structural limitation-investors are forced to remain fully exposed during bear markets, often giving back years of gains in short periods of stress.

During certain years of economic uncertainty, bearish markets can negate the positive returns generated over several years.

Mathematically speaking, clawing back lost gains takes a higher percentage up move to offset the down move.

So, for a stock to claw back a 20% down move, it would take 25% up mov...