SBI Mutual Fund has launched its inaugural Specialized Investment Fund (SIF) under the new SEBI framework. The Magnum Hybrid Long Short Fund, an interval strategy, opened for subscription on 1 October 2025 and will close on 15 October 2025.
This fund aims to offer investors a hybrid investment approach combining equity, debt, and derivatives strategies within a regulated mutual fund structure.
What Is Magnum SIF?
A Specialized Investment Fund (SIF) is a new investment category that serves as a hybrid between traditional mutual funds and portfolio management services (PMS). It allows investors to access advanced investment strategies with mutual fund-like taxation benefits.
Investment Strategy
The Magnum Hybrid Long Short Fund employs an interval investment strategy, investing predominantly in:
Equity and Equity-Related Instruments: 65%–75%
Debt and Money Market Instruments: 25%–35%
REITs/InvITs: Up to 10%
The fund also utilizes derivatives for limited short exposure (up to 25%) and employs strategies like covered calls and arbitrage to enhance returns.
Key Details
Minimum Investment: ₹10 lakh (lumpsum); ₹10,000 (additional purchases)
Redemption Frequency: Twice a week (Mondays and Thursdays)
Benchmark Index: NIFTY 50 Hybrid Composite Debt 50:50 Index TRI
Taxation: Similar to mutual funds; long-term capital gains (LTCG) tax at 12.5% after 12 months for equity; debt instruments taxed as per the investor's tax bracket
Risk Profile: Moderate (Risk Level 2)
Important Dates
NFO Period: 1 October 2025 – 15 October 2025
Subscription Window: Open on all business days until 15 October
Redemption Window: Available twice a week (Mondays and Thursdays)
Is This Fund Right for You?
The Magnum Hybrid Long Short Fund is suitable for investors seeking:
Diversified exposure across equity, debt, and derivatives
Moderate risk profile with potential for long-term capital appreciation
A tax-efficient structure with mutual fund-like benefits
However, the minimum investment requirement of ₹10 lakh makes it primarily suitable for high-net-worth individuals (HNIs) and institutional investors.
Final Thoughts
With the NFO closing on 15 October 2025, investors should carefully consider their investment objectives before subscribing. This fund offers a unique blend of equity, debt, and derivatives strategies, catering to sophisticated investors seeking enhanced returns in a regulated framework.
FAQ:
Q1. What is Magnum SIF?
A: Magnum SIF (Specialized Investment Fund) is SBI Mutual Fund’s hybrid fund combining equity, debt, and derivatives strategies under a regulated mutual fund framework.
Q2. When does the NFO close?
A: The NFO subscription closes on 15 October 2025.
Q3. What is the minimum investment?
A: Minimum initial investment is ₹10 lakh, with additional purchases allowed from ₹10,000.
Q4. What is the risk profile of this fund?
A: It carries a moderate risk profile (Risk Level 2) suitable for investors seeking a balance between growth and stability.
Q5. How frequently can I redeem units?
A: Redemptions are available twice a week, on Mondays and Thursdays.
Q6. Who is this fund suitable for?
A: Primarily for high-net-worth individuals (HNIs) and institutional investors looking for a diversified, tax-efficient investment strategy.
Published on : 10th October
Published by : SMITA
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