Which type of SIF should I choose: hybrid, equity long-short or Ex-Top 100?

The right category depends on what role you want the SIF to perform.

For relatively conservative investors, income-oriented hybrid SIFs may have return engines driven more by debt, arbitrage and market-neutral strategies.

For investors seeking smoother equity participation, hybrid SIFs with meaningful equity exposure may be relevant, but their actual net equity and derivative exposure can vary significantly.

For aggressive equity investors, equity long-short SIFs can potentially be treated as a satellite allocation around an existing equity core.

They should still be treated like equity products and not like hedged deposits.

Ex-Top 100 SIFs can provide differentiated mid- and small-cap exposure, but investors who already have significant mid- and small-cap mutual fund exposure should check whether they are actually diversifying or simply increasing the same concentration.

Active asset allocator SIFs can outsource allocation decisions to the manager, but they are also highly dependent on the manager and the model.

Do not choose the SIF category first. First decide what portfolio problem you are trying to solve.

“The correct question is: what job does this SIF perform in my portfolio?”

“SIFs should be added only when they solve a clearly identified portfolio problem.”

This is not personalized investment advice. Your portfolio, goals, liquidity needs and risk tolerance may be different, so assess your own situation and discuss it with your financial advisor.