SBI Mutual Fund has successfully raised around ₹1,100 crore through the launch of its Magnum Hybrid Long Short Fund, the first product under SEBI’s newly introduced Specialised Investment Fund (SIF) framework. The New Fund Offer (NFO), which ran from October 1 to October 15, 2025, attracted over 10,000 applications, highlighting strong investor interest in this novel investment structure.
About the SIF Framework
The SIF category, introduced by SEBI earlier this year, aims to bridge the gap between traditional mutual funds and more sophisticated investment structures like Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). Investors in SIFs are required to commit a minimum of ₹10 lakh, aggregated across all SIF strategies offered by a single asset management company (AMC), based on their PAN.
Fund Management and Strategy
The Magnum Hybrid Long Short Fund is managed by Gaurav Mehta, CFA, who heads the SIF – Equity division at SBI Mutual Fund. The fund employs a hybrid investment strategy, designed to generate risk-adjusted returns by combining derivative techniques with traditional equity and debt instruments.
Investment Approach
The scheme will use derivative strategies such as covered calls and arbitrage between cash and derivatives markets. It will also allocate to debt and money market instruments to mitigate volatility, while taking select unhedged equity positions for long-term capital appreciation. This approach aims to balance risk management with potential upside, catering to investors seeking sophisticated but structured exposure in the equity markets.
Significance
As SBI Mutual Fund’s first SIF offering, the successful subscription demonstrates strong investor appetite for regulated, flexible investment options beyond conventional mutual funds. The Magnum Hybrid Long Short Fund sets a precedent for innovative fund offerings under the SIF framework, potentially opening new avenues for high-net-worth investors to participate in risk-managed, multi-asset investment strategies.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.