ASK Absolute Return Fund

What Is the ASK Absolute Return Fund Strategy?

The ASK Absolute Return Fund is an open-ended Category III AIF in India managed by ASK Long-Short Fund Managers Private Limited under ASK Hedge Solutions, a business of the wider ASK Asset & Wealth Management Group.

The fund was launched on 31 January 2024 and has a minimum investment requirement of ₹1 crore.

The ASK Absolute Return Fund strategy combines long-only opportunities, short positions, hedging and derivatives within a multi-strategy framework. It also uses fundamental research, technical inputs and quantitative strategies to pursue absolute and risk-adjusted returns.

The fund follows a hedged approach rather than relying only on rising equity markets. Instead of maintaining consistently high net equity exposure, the strategy can adjust its market participation according to the investment team’s assessment of market conditions and individual opportunities.

The approach incorporates:

• Fundamental research
• Technical analysis
• Quantitative inputs
• Long and short positions
• Relative-value opportunities
• Special situations
• Index and equity derivatives
• Portfolio hedging

The fund’s stated objective is to pursue absolute returns over the medium term with a lower degree of volatility compared with broader Indian equity indices. It also seeks risk-adjusted returns over liquid fixed-income alternatives over a 12-plus-month investment horizon.

These are investment objectives and not assured outcomes. Hedging and risk-management measures do not eliminate investment risk.

ASK Absolute Return Fund Overview

Terms are based on the latest available fund update.

How the ASK Absolute Return Fund Long-Short Strategy Works

Long Positions

The fund can take long positions in companies or indices where the investment team identifies attractive fundamentals, valuations, earnings potential or other catalysts.

Fundamental analysis can include financial modelling, earnings quality, valuation, management assessment, competitive positioning and sector dynamics.

Short Positions

Short positions allow the portfolio to potentially benefit when selected securities or indices decline. They may also be used to offset part of the portfolio's long exposure.

For example, if the fund holds long positions in selected companies but expects broader market weakness, index futures can potentially be used as part of the hedge.

Short selling carries its own risks. A short position can generate losses if the underlying security or index rises.

Hedging and Derivatives

The fund can use equity and index derivatives for hedging, portfolio rebalancing and directional opportunities. The strategy may maintain portfolio hedges as part of its risk-management framework.

The result is a hedged, derivatives-based equity strategy, but hedging should not be interpreted as capital protection.

ASK Absolute Return Fund Portfolio Construction

The ASK Absolute Return Fund portfolio construction combines macro analysis, fundamental research and quantitative inputs.

Macro Framework

The investment process considers factors such as:

• Domestic and global economic conditions
• Interest rates and inflation
• Currency movements
• Commodity prices
• Market liquidity
• Domestic and foreign flows
• Geopolitical developments
• Relative sector valuations

These inputs can influence portfolio deployment, hedging and overall market exposure.

Fundamental Research

The team evaluates individual companies through factors including:

• Business fundamentals
• Earnings outlook
• Valuation
• Management quality
• Corporate governance
• Balance-sheet strength
• Competitive positioning
• Potential catalysts

Quantitative and Technical Inputs

Quantitative models, technical indicators and derivatives-related information can supplement fundamental research. The combination gives the fund flexibility to pursue multiple sources of potential returns rather than depending on a single market signal.

ASK Absolute Return Fund Multi-Strategy and Market Exposure

The ASK Absolute Return Fund can combine several strategies within the same portfolio.

These may include:

• Directional long positions
• Directional short positions
• Relative-value trades
• Arbitrage opportunities
• Quantitative strategies
• Special situations
• Index hedges
• Derivative strategies

Gross exposure represents the total magnitude of long and short positions, while net exposure represents the difference between long and short exposure.

This distinction is important because a portfolio can have substantial gross exposure while maintaining relatively lower net market exposure.

The strategy therefore has characteristics of a market-neutral AIF strategy, although investors should not interpret this as a promise that the portfolio will remain market neutral at all times.

ASK Absolute Return Fund Risk Management Framework

The ASK Absolute Return Fund risk management framework includes exposure monitoring, hedging, liquidity assessment and predefined risk controls.

Key elements include:

• Security-level exposure monitoring
• Sector-level exposure controls
• Portfolio hedging
• Stop-loss mechanisms
• Liquidity monitoring
• Risk-limit monitoring
• Portfolio rebalancing
• Continuous assessment of market conditions

The strategy seeks to manage volatility and drawdowns, but risk controls cannot prevent losses under every market condition.

ASK Absolute Return Fund Fees

The applicable fee depends on the investment amount and share class.

The scheme's other expenses can include custody, fund accounting and operational charges, while brokerage and transaction charges are applicable as per the fund terms.

Fee structure as provided in the available fund presentation. Applicable share class and current commercial terms should be confirmed before subscription.

ASK Absolute Return Fund Minimum Investment and Liquidity

The ASK Absolute Return Fund minimum investment is ₹1 crore, subject to applicable regulations and fund terms.

The fund follows a monthly redemption AIF structure. Subscriptions can be accepted at month-end or mid-month at the Investment Manager's discretion, while redemptions are available monthly with a five-day notice period.

The ASK Absolute Return Fund liquidity terms therefore differ from daily-liquidity mutual fund products. Investors should review the applicable redemption process, cut-off requirements and fund documentation before investing.

The ASK Absolute Return Fund exit load is currently stated as nil.

ASK Absolute Return Fund Taxation

The ASK Absolute Return Fund taxation framework is subject to the Category III AIF structure, applicable tax laws and the fund’s Private Placement Memorandum.

The available fund material states that taxation is discharged at the fund level at the Marginal Maximum Rate. However, the actual tax treatment can depend on the nature of income, investor circumstances and changes in applicable regulations.

Investors should review the latest taxation provisions and consult a qualified tax professional before making an investment decision.

ASK Absolute Return Fund Performance

Performance as of 31 July 2026

Data as of 31 July 2026. Returns are gross of fees and taxes. NSE 50 Arbitrage Index is for reference and is not the fund's benchmark. Past performance is not indicative of future results.

Calendar-Year Performance

2024 performance is from the fund's 31 January 2024 inception. Performance figures are gross of fees and taxes.

Risk Metrics

Calculated using daily rolling gross returns since inception, with a 6% risk-free rate.

Who May Consider ASK Absolute Return Fund?

The fund may be explored by investors who:

• Can meet the ₹1 crore minimum investment.
• Understand Category III AIF structures.
• Are comfortable with derivatives and short positions.
• Have a medium-term investment horizon.
• Want an alternative to conventional long-only equity exposure.
• Can tolerate complex investment and fee structures.
• Understand that an absolute-return objective does not mean positive returns in every period.

Key Risks of ASK Absolute Return Fund

The ASK Absolute Return Fund risk profile is influenced by its use of short positions, derivatives, leverage and multiple strategies.

• Market risk: Equity and index movements can adversely affect portfolio positions.
• Short-selling risk: Losses can arise when securities sold short increase in value.
• Derivatives risk: Derivatives can magnify gains and losses.
• Leverage risk: A relatively small movement in an underlying asset can have a larger impact on leveraged positions.
• Model risk: Quantitative models may perform differently from historical expectations.
• Liquidity risk: Certain positions may be difficult or costly to exit during stressed markets.
• Counterparty risk: Derivative and other transactions can expose the fund to counterparty default.
• Basis risk: Hedges may not move exactly in line with the positions they are intended to offset.
• Concentration risk: Individual securities, sectors or strategies may contribute materially to portfolio outcomes.
• Operational risk: Trading, valuation, settlement or technology issues can affect portfolio performance.
• Tax and regulatory risk: Changes in tax rules or regulations can affect investor outcomes.
• Manager risk: Investment outcomes can be affected by portfolio construction, execution and risk-management decisions.

A low-volatility AIF strategy can still experience losses, and hedging does not ensure downside protection..

 How to Evaluate ASK Absolute Return Fund Before Investing

Before subscribing, investors should review:

• Latest Private Placement Memorandum
• Applicable fee/share class
• Current portfolio and exposure
• Gross and net exposure history
• Drawdowns and volatility
• Redemption terms
• Tax treatment
• Derivative usage
• Risk-management framework
• Fund manager details
• Role of the fund within the overall portfolio

The ASK Absolute Return Fund AIF should be evaluated based on its structure, risks, costs, liquidity and investment objective rather than past returns alone.

Explore ASK Absolute Return Fund with ALTPORT

Understand the strategy, portfolio construction, fee options, liquidity terms and key risks before investing.

Speak to an ALTPORT Expert to request fund information, access relevant documentation and understand the application and onboarding process.

Disclaimer: Investing in AIFs is subject to market and other risks. Please read the relevant fund documents carefully before investing. Past performance does not guarantee future results, and there is no assurance that the fund will achieve its stated objectives. Derivatives, leverage and short positions can result in significant losses. ALTPORT does not guarantee returns or the performance of the scheme.