#SBIMutualFund #SpecialisedInvestmentFund #MagnumHybridLongShortFund #MultiAssetStrategy #InvestmentNews #MutualFundsIndia #WealthManagement #TaxEfficientInvesting #SBI #Amundi #IndianMarkets
Mumbai: SBI Mutual Fund, India’s largest asset manager, has announced the launch of its first Specialised Investment Fund (SIF), introducing a multi-asset strategy designed to offer investors an innovative blend of income generation and long-term wealth creation. The fund, named the Magnum Hybrid Long Short Fund, will be available for subscription under a New Fund Offer (NFO) window from October 1 to October 15, 2025.
This marks a significant milestone for SBI Mutual Fund, as it becomes one of the early movers in launching products under the newly introduced SIF framework by SEBI.
A Multi-Asset Approach for Dynamic Markets
The Magnum Hybrid Long Short Fund adopts a flexible investment strategy by allocating assets across:
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Equities (65%–75%) with both hedged and unhedged exposure
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Derivatives strategies including covered calls and arbitrage opportunities
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Debt and money market instruments (25%–35%) for stability
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REITs and InvITs (up to 10%) for diversification and alternative income streams
This balanced mix is designed to help investors navigate different market cycles, reduce volatility, and capture growth opportunities across multiple asset classes.
The fund’s benchmark index is the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI, providing a fair measure of both equity and debt market dynamics.
Investment Philosophy and Objectives
According to SBI MF, the fund’s primary goal is to deliver optimal risk-adjusted returns while keeping volatility in check. It aims to:
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Generate regular income through derivative strategies like covered calls and arbitrage
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Capture long-term capital appreciation from unhedged equity exposure
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Provide conservative investors with a relatively smoother investment experience compared to pure equity funds
The fund is particularly positioned as an attractive option for HNI and institutional investors, given its minimum investment requirement of ₹10 lakh.
Tax Efficiency Under SIF Framework
One of the key differentiators of the Specialised Investment Fund framework is its tax efficiency. Investors in the Magnum Hybrid Long Short Fund can avail:
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Long-term capital gains (LTCG) tax rate of 12.5% (plus surcharge and cess) for investments held over 12 months
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An annual exemption of ₹1.25 lakh on LTCG
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Greater clarity and predictability in taxation compared to traditional mutual funds
This makes the scheme particularly attractive for investors looking for tax-advantaged investment vehicles in addition to diversification.
Subscription and Redemption
The NFO will remain open from October 1 to October 15, 2025, offering daily subscriptions during this period. Post-NFO, investors will enjoy a unique redemption structure — liquidity will be provided twice a week, specifically on Mondays and Thursdays.
The minimum additional purchase is set at ₹10,000, and investments can be made either through lump sum contributions or SIPs, offering flexibility in participation.
Fund Management and Expertise
The Magnum Hybrid Long Short Fund will be managed by Gaurav Mehta, CFA, Head – SIF, Equity. Mehta has been associated with SBI Funds Management since 2018 and has extensive experience in managing equity portfolios, long-short strategies, and PMS mandates. His expertise is expected to lend both credibility and depth to the new offering.
SBI Mutual Fund’s Market Position
SBI Mutual Fund is a joint venture between the State Bank of India, India’s largest bank, and Amundi, one of Europe’s leading asset managers.
As of August 31, 2025, SBI MF manages assets under management (AUM) of approximately ₹11.9 lakh crore, making it India’s leading fund house by market share. The launch of its first SIF is expected to further consolidate its leadership position by tapping into the rising demand for innovative, tax-efficient, multi-asset strategies.
Industry Context – Why SIFs Matter
The launch of SIFs comes at a time when SEBI’s regulatory innovations are broadening the scope for asset managers. These funds are aimed at investors seeking:
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Sophisticated investment strategies like long-short equity and multi-asset approaches
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Diversification across traditional and alternative assets
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Tax efficiency with structured frameworks
With increasing global market uncertainty and volatility, SIFs are seen as an important tool to balance risk and reward, especially for investors who may not want to rely solely on long-only equity funds or fixed income.
Expert Commentary
Speaking on the launch, Gaurav Mehta said:
“The Magnum Hybrid Long Short Fund combines the best of multiple asset classes with an intelligent use of derivatives. It provides investors with an avenue to generate income while participating in long-term growth opportunities. Our focus is on offering a product that adapts to market cycles while keeping volatility manageable.”
Industry experts believe that the introduction of such funds could pave the way for a new generation of investment products in India, bridging the gap between traditional mutual funds and alternative investment funds (AIFs).
Conclusion
The launch of the SBI Magnum Hybrid Long Short Fund under the SIF framework marks a new era in India’s asset management landscape. With its multi-asset, tax-efficient structure, it is expected to appeal strongly to conservative and high-value investors seeking both stability and growth.
As SBI MF continues to innovate, this fund could set the benchmark for how Indian investors approach diversification, tax efficiency, and volatility management in their portfolios.
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