Mumbai: SBI Mutual Fund has announced the launch of the Magnum Hybrid Long Short Fund, its first investment strategy under the newly introduced Specialized Investment Fund (SIF) framework.
The New Fund Offer (NFO) will be open for subscription from October 1 to October 15, 2025.
The Magnum Hybrid Long Short Fund is designed as an interval investment strategy that invests predominantly in equity and debt securities, while also taking limited short exposures through derivatives.
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The fund seeks to generate regular income by leveraging derivative strategies such as covered calls and arbitrage opportunities in equity markets, alongside long-term capital appreciation through unhedged equity exposure.
Speaking on the launch, Nand Kishore, MD & CEO, SBI Funds Management Limited, said: “The launch of our Specialized Investment Fund (SIF) framework represents a strategic evolution in SBI Mutual Fund’s journey. The Magnum Hybrid Long Short Fund demonstrates our commitment to offering solutions aligned with evolving market conditions and delivering value to investors across market cycles.”
Adding further, D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said: “Magnum SIF now serves as a bridge between our mutual fund and portfolio management services, providing innovative strategies for evolving investors. The Magnum Hybrid Long Short Fund reflects our focus on investor-centric solutions.”
Investment Structure and Key Features of Magnum Hybrid Long Short Fund
- Subscription & Redemption: Daily subscriptions; redemptions available twice a week (Mondays and Thursdays)
- Minimum Investment: ₹10 lakh (additional purchase ₹10,000)
- Benchmark: NIFTY 50 Hybrid Composite Debt 50:50 Index TRI
- Equity Allocation: 65–75% of total assets
- Debt & Money Market Instruments: 25–35% of allocation
REITs and InvITs: Up to 10% (within SEBI-prescribed limits)
- Hedged/Arbitrage Exposure: 0–75% through derivatives (index futures, stock futures, options, covered calls, protective puts)
- Short Derivatives Exposure: 0–25%
The strategy enables investors to diversify across equity, debt, and alternative investment opportunities while managing risks with hedging and arbitrage.
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Fund Manager for Magnum Hybrid Long Short Fund
The Magnum Hybrid Long Short Fund will be managed by Gaurav Mehta, CFA, Head – SIF, Equity at SBI Funds Management Limited.
Mehta, who joined the firm in 2018, has held key roles in equity research, fund management, and alternatives. Since July 2025, he has been leading equity investment strategies under the Magnum SIF platform.
