All Alternative Strategies Mutual Funds

Browse every Alternative Strategies fund. Compare returns, NAV and ratings to find the right fund for your portfolio.

All Alternative Strategies Mutual Funds

FUND

NAV

RATING

Overview

Overview of All Alternative Strategy Mutual Funds

The All Alternative Strategies page helps investors compare investment approaches that do not fit neatly into traditional long-only equity or debt investing.

Within the current Lemonn category structure, Arbitrage Funds form an important part of this grouping.

Investors should compare these schemes according to how they generate returns rather than comparing them directly with ordinary Equity Funds based only on recent performance.

Explained

What Are the Main Alternative Strategy Mutual Fund Categories?

Alternative strategy groupings can contain strategies such as arbitrage and, in broader regulated investment structures, long-short or other specialised approaches.

Within conventional mutual funds, Arbitrage Funds are a well-established example.

The strategy typically involves taking offsetting positions in related cash and derivatives markets to capture pricing differences.

Other long-short strategies can operate under specialised regulatory frameworks and should not automatically be treated as conventional mutual fund categories.

Explained

How Do Alternative Strategy Mutual Fund Categories Work?

The investment mechanism varies by strategy.

Arbitrage

The fund attempts to capture a price difference between related securities or markets.

Long-short

Where permitted under an appropriate structure, the strategy can combine long positions with permitted short positions.

Relative-value strategies

A manager can attempt to benefit from differences in valuation between related assets rather than making a purely directional market call.

The exact permitted techniques depend on the regulated product.

Suitability

Who Should Invest in Alternative Strategy Mutual Funds?

These strategies may suit investors who:

Want to diversify return sources.
Understand the underlying strategy.
Can evaluate derivative risk.
Have realistic return expectations.
Can tolerate periods when the strategy underperforms.
Understand that reduced market direction risk does not mean zero risk.

Advantages

Advantages of Comparing Alternative Strategy Mutual Funds

Strategy-based comparison
Investors can compare how funds generate returns rather than relying solely on asset labels.
Different market behaviour
Some strategies can behave differently from conventional long-only equity portfolios.
Diversification potential
Alternative return drivers can potentially diversify a broader portfolio.
Professional execution
Complex transactions can be managed by specialised investment teams.

Before you invest

Things to Consider Before Investing in Alternative Strategy Mutual Funds

Compare like with like
An Arbitrage Fund should not be evaluated against a long-short SIF strategy as though both have identical risk.
Understand derivatives
Review why derivatives are being used and whether they hedge or create additional market exposure.
Examine net exposure
Gross positions can overstate directional market exposure in hedged strategies.
Review liquidity
Understand both underlying market liquidity and the scheme's redemption rules.
Check costs
Trading and management costs can materially influence returns.
Verify regulatory structure
Determine whether the product is a conventional mutual fund, SIF, or another permitted structure.

Taxation

Taxation of Alternative Strategy Mutual Funds

Tax treatment varies by product.

A qualifying Arbitrage Fund can generally receive equity-oriented mutual fund tax treatment when the applicable conditions are satisfied.

Other alternative strategies can have different tax consequences.

Investors should verify the current classification of the exact scheme rather than applying one tax assumption across the entire discovery category.

Step by step

How to Invest in Alternative Strategy Mutual Funds?

Define why you want an alternative strategy.
Identify the underlying investment mechanism.
Compare only similar strategies.
Understand derivatives.
Review gross and net exposure.
Examine liquidity.
Compare historical behaviour across market environments.
Review expenses and exit loads.
Check applicable risk disclosures.
Verify tax classification.
Complete KYC and other eligibility requirements.
Invest according to your overall asset allocation.

Good to know

Frequently Asked Questions

What should I compare across Alternative Strategy Funds?
Compare the actual strategy, market exposure, derivatives, liquidity, costs, risk, and taxation.
Is an Arbitrage Fund an Equity Fund?
Its strategy differs substantially from a conventional directional Equity Fund, even though qualifying Arbitrage Funds can meet equity exposure requirements relevant to category and taxation.
Are all alternative strategies market neutral?
No. Some can reduce directional exposure, while others can maintain meaningful net long or short positions.
Do Alternative Strategy Funds always outperform during market declines?
No. Performance depends on the strategy and market environment.
Are Alternative Strategy Funds guaranteed?
No. They remain market-linked investments.
How should beginners compare these funds?
Start by understanding exactly how the strategy makes and loses money before examining recent returns.

Recap

Key Takeaways

Compare alternative strategies according to their actual investment mechanism.
Arbitrage and long-short strategies should not be treated as identical.
Gross exposure and net exposure can tell different stories.
Alternative strategies can still lose money.
Regulatory structure and tax classification should be checked before investing.

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