Key Takeaways
- • SBI Mutual Fund has launched the Magnum Hybrid Long Short Fund, its first offering under SEBI's new Specialised Investment Fund (SIF) framework, targeting stable, risk-adjusted returns across market cycles.
- • The fund employs a multi-asset strategy with 65–75% equity allocation, with net exposure hedged through derivatives (including covered calls), combined with fixed income, debt, and real estate/infrastructure investments (REITs and InvITs).
- • New Fund Offer (NFO) opens October 1–15, 2025, with a ₹10 lakh minimum investment; redemptions available twice weekly (Mondays and Thursdays), supporting both lump-sum and systematic investment plans.
- • Deputy MD & Joint CEO DP Singh projects the Hybrid Long Short Fund could exceed other comparable hybrid offerings within three years, positioning it as a "FD-plus option" suitable for retirees and conservative equity investors seeking downside protection.
- • The fund structure addresses a specific market gap by delivering equity exposure with significantly reduced volatility through derivatives overlay, making it accessible to investors traditionally uncomfortable with direct equity exposure.
Summary
SBI Mutual Fund has entered the Specialised Investment Fund (SIF) category with the launch of its Magnum Hybrid Long Short Fund, marking the fund house's first offering under the regulatory framework introduced by the Securities and Exchange Board of India (SEBI). The multi-asset strategy is designed to provide investors with stable, risk-adjusted returns while maintaining flexibility across shifting market conditions.
The fund adopts a hybrid long-short methodology, allocating 65–75% of assets to equities while maintaining net exposure that is substantially hedged through derivatives strategies. Beyond equities, the fund invests across debt instruments, derivatives, and real estate/infrastructure vehicles (REITs and InvITs), providing diversification across multiple asset classes and market cycles. This structural approach enables the fund to reduce volatility through hedging mechanisms such as covered calls, a feature particularly relevant for risk-averse investors.
The New Fund Offer (NFO) commences October 1, 2025, and runs through October 15, 2025. The minimum investment threshold has been set at ₹10 lakh, with subsequent investments available in multiples of ₹10,000. Redemptions will be processed twice weekly on Mondays and Thursdays, while daily investment options are available. The fund accommodates both lump-sum and systematic investment plan (SIP) structures, broadening accessibility to different investor profiles.
DP Singh, Deputy MD & Joint CEO at SBI Mutual Fund, stated that the fund is positioned for retirees and first-time equity investors seeking downside protection. Singh projected that within three years, the Hybrid Long Short Fund could exceed other comparable hybrid offerings, contingent on stable tax treatment and regulatory conditions. He emphasized the fund's appeal as a "FD-plus option" for conservative savers, noting that the derivatives overlay significantly reduces losses during market downturns compared to traditional equity-heavy hybrid funds.
The launch reflects SBI Mutual Fund's strategic pivot toward structured, alternative strategies within India's evolving asset management landscape, targeting institutional and high-net-worth investors seeking sophisticated multi-asset exposure with embedded risk management.
The fund adopts a hybrid long-short methodology, allocating 65–75% of assets to equities while maintaining net exposure that is substantially hedged through derivatives strategies. Beyond equities, the fund invests across debt instruments, derivatives, and real estate/infrastructure vehicles (REITs and InvITs), providing diversification across multiple asset classes and market cycles. This structural approach enables the fund to reduce volatility through hedging mechanisms such as covered calls, a feature particularly relevant for risk-averse investors.
The New Fund Offer (NFO) commences October 1, 2025, and runs through October 15, 2025. The minimum investment threshold has been set at ₹10 lakh, with subsequent investments available in multiples of ₹10,000. Redemptions will be processed twice weekly on Mondays and Thursdays, while daily investment options are available. The fund accommodates both lump-sum and systematic investment plan (SIP) structures, broadening accessibility to different investor profiles.
DP Singh, Deputy MD & Joint CEO at SBI Mutual Fund, stated that the fund is positioned for retirees and first-time equity investors seeking downside protection. Singh projected that within three years, the Hybrid Long Short Fund could exceed other comparable hybrid offerings, contingent on stable tax treatment and regulatory conditions. He emphasized the fund's appeal as a "FD-plus option" for conservative savers, noting that the derivatives overlay significantly reduces losses during market downturns compared to traditional equity-heavy hybrid funds.
The launch reflects SBI Mutual Fund's strategic pivot toward structured, alternative strategies within India's evolving asset management landscape, targeting institutional and high-net-worth investors seeking sophisticated multi-asset exposure with embedded risk management.
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