Hedge funds in India have seen rapid growth as investors explore structured, risk managed approaches during uncertain market cycles. With increasing awareness of diversification techniques and volatility protection, more individuals are trying to understand what hedge funds are, how they work, and which funds operate in the regulated Indian ecosystem.
In India, hedge funds function under SEBI’s Alternative Investment Fund Category III regulations, focusing on long short strategies, market neutral models, and structured risk management. As we move into 2026, interest in the top hedge funds in India is rising because many investors want to learn how risk balancing works in real portfolios.
This guide offers an educational overview of the top 10 hedge funds in India,
What Makes a Good Hedge Fund
Before looking at the list, it helps to understand what defines strong institutional grade risk management.
A good hedge fund usually shows:
- Clear and transparent strategy framework
- A balanced approach to risk exposure
- Strong compliance and reporting practices
- Disciplined long short or hedged approaches
- Experienced management teams
- Diversification across sectors or factors
- The ability to adjust exposure during high volatility
These characteristics help investors understand the fundamental logic behind hedge funds and how they differ from traditional mutual fund structures.
Top Hedge Funds in India
1. Simply Hedged Fund
Simply Hedged Fund is a structured options and equity framework designed to help investors understand how hedging can stabilize portfolio exposure. It combines option based methods, disciplined risk filters, and research backed allocation. The objective is to provide a transparent view of risk rather than prediction.
Key Features:
- Options based portfolio protection
- Exposure control through analytical models
- Educational integration for investor awareness
- Real time risk tracking tools
Best for: Investors who want a hedged portfolio that focuses on risk discipline and stability.
Why it stands out: It integrates risk education with hedging principles, making complex strategies easier to understand.
2. Avendus Absolute Return Fund
Avendus uses long short equity strategies supported by detailed research and broad sector coverage. The fund aims to maintain balanced exposure across market phases using institutional grade processes. It is one of the largest players in the Category III space.
Best for: Investors wanting established long short strategy frameworks.
Highlight feature: Strong research backed exposure management.
3. IIFL Multi Strategy Fund
This fund blends multiple long short models, relative value approaches, and quantitative signals. It diversifies across strategies rather than relying on a single style. This helps the fund adapt to varying market conditions.
Best for: Investors seeking multi strategy diversification.
Highlight feature: Combination of quant and relative value models.
4. Edelweiss Alternative Equity Fund
Edelweiss uses volatility responsive long short techniques that combine derivatives and equity exposure. The fund follows a process driven approach to manage fluctuations in the market.
Best for: Investors who want volatility aware allocation.
Highlight feature: Structured long short model with volatility filters.
5. Motilal Oswal Alpha Fund
Motilal Oswal’s long short fund is powered by quantitative, rule based signals. It uses systematic screening and consistent execution to manage changing cycles without discretionary bias.
Best for: Data oriented investors exploring quant strategies.
Highlight feature: Rule based, systematic long short design.
6. Helios India Rising Fund
Helios applies factor based long short strategies supported by global investment experience. It uses quality, momentum, and valuation factors to build a structured exposure profile.
Best for: Investors who prefer factor driven models.
Highlight feature: Structured factor based selection.
7. ICICI Prudential PMS & AIF Hedge Fund Strategies
ICICI Prudential offers multiple long-short and hedging-focused strategies through its PMS and AIF Category III platforms. These strategies use research-backed exposure models, disciplined hedging, and strong institutional oversight.
Best for: Investors seeking large-institution hedge fund offerings.
Highlight feature: Multiple strategy options with strong compliance governance.
8. Tata Alternative Long Short Fund
Tata’s long short alternative fund combines equity research with disciplined hedging techniques. It is supported by institutional oversight and follows a structured allocation path.
Best for: Investors who prefer large, established financial groups.
Highlight feature: Consistent, process driven hedged allocation.
9. Marcellus Long Short Alternatives Fund
Marcellus uses deep fundamental research combined with selective hedging to create a stable exposure pattern. The approach focuses on quality filtered stock selection.
Best for: Research focused investors.
Highlight feature: Research intensive long short structure.
10. ABSL India Opportunities Fund (Aditya Birla Sun Life AIF)
This fund uses long, short, relative value, and multi model exposure to diversify risk. It is backed by a large institution and offers a structured alternative approach.
Best for: Investors wanting diversified alternative strategies.
Highlight feature: Multi model, institution backed structure.
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