Tata Market Neutral Fund I
Sharpe Ratio
1.82
Fund Type
Long Short — Market Neutral (Category III AIF)
Benchmark
CRISIL Liquid Fund Index
Inception Date
January 2022
Min. Investment
₹1 Crore
AUM
₹1,600 Cr
About the Fund
Tata Market Neutral Fund I deploys a pure beta-neutral strategy — maintaining equal long and short exposure so that overall market movements cancel out, generating returns exclusively from stock selection alpha. Long positions in quality compounders are offset by short positions via Nifty 200 F&O instruments, keeping net equity beta within ±10% of NAV at all times. The fund is benchmarked against CRISIL Liquid Fund Index, reflecting its low market-correlated return profile.
The fund's quantitative engine screens the Nifty 200 F&O universe for pairs with statistically significant historical price relationships that have deviated beyond 2-sigma thresholds — the entry signal for pairs trades. Positions are exited when the spread reverts within 0.5 sigma. Individual pair loss limits at 0.5% of NAV and a strategy-level drawdown limit of 8% are enforced automatically, creating a self-disciplining risk management system.
Fund Manager Details
Rahul Singh
Chief Investment Officer – Equities, Tata Asset Management
22+ years in equity research and quantitative strategies; CFA charterholder; IIT Bombay; formerly HSBC Global Asset Management
Rahul Singh leads Tata AMC's equity investment function and personally oversees the Market Neutral AIF strategy. He built the quantitative factor model underlying the pairs trading system and manages a team of four dedicated quantitative analysts. Prior experience at HSBC Global Asset Management includes managing systematic strategies across Asian equity markets.
Interested in this fund?
Speak with our institutional advisory team for eligibility, documentation, and onboarding.