SBI MF Rolls Out Magnum Hybrid Long Short Fund, NFO Opens October 1

SBI Mutual Fund, India’s largest asset manager, on Wednesday launched its first investment strategy under the newly introduced Specialized Investment Fund (SIF) framework — the Magnum Hybrid Long Short Fund. The New Fund Offer (NFO) opens on October 1, 2025 and will close on October 15, 2025.

The interval investment strategy will invest predominantly in a mix of equity and debt securities, with limited short exposure through derivatives. The fund aims to generate regular income through derivative strategies such as covered calls and arbitrage opportunities in the cash and derivatives segments, while also seeking long-term capital appreciation via unhedged equity exposure.

“The launch of our Specialised Investment Fund (SIF) framework represents a strategic evolution in SBI Mutual Fund’s journey,” said Nand Kishore, MD & CEO, SBI Funds Management Ltd. “The Magnum Hybrid Long Short Fund, the first strategy under Magnum SIF, demonstrates our commitment to delivering value to investors across market cycles.”

 

Key Features of the Magnum Hybrid Long Short Fund

Structure: Interval investment strategy with daily subscriptions; redemptions twice a week (Mondays and Thursdays).

Minimum Investment: ₹10 lakh initial application; additional purchases from ₹10,000 onwards.

Investment Options: Lump sum and SIP.

Benchmark: NIFTY 50 Hybrid Composite Debt 50:50 Index TRI.

Portfolio Mix:

65–75% in equity & equity-related instruments.

0–75% hedged exposure (via index futures, stock futures, options, covered calls, protective puts, arbitrage).

0–25% unhedged short derivatives.

25–35% in debt and money market instruments (including debt-oriented MF units).

Up to 10% in REITs and InvITs (within SEBI limits).

The strategy will be managed by Gaurav Mehta, CFA, Head – SIF, Equity, who has been with SBI Funds Management since 2018 and currently oversees equity strategies under the SIF platform.

With over 38 years of investment management legacy, SBI Mutual Fund said the Magnum SIF platform would allow it to introduce more differentiated strategies in the future, bridging the gap between conventional mutual funds and portfolio management services.

" Magnum SIF now serves as a bridge between our mutual fund and portfolio management services, delivering innovative investment strategies for today’s evolving investors. Our first investment strategy, the Magnum Hybrid Long Short Fund, reflects our focus on innovation and investor-centric solutions. We look forward to introducing more differentiated strategies under Magnum SIF in the future," said D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited.

The Magnum Hybrid Long-Short Fund allows daily subscriptions, while redemptions are available twice a week (Mondays and Thursdays). The minimum application amount is ₹10 lakh, with a minimum additional purchase amount of ₹10,000.

Investments can be made through lump sum and SIPs. The benchmark for the investment strategy is the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI.

The strategy will primarily invest between 65% and 75% of its assets in equity and equity-related instruments. The hedged portion will range from 0% to 75%, including index futures, stock futures, index options, stock options, and other derivative strategies (such as covered calls and protective puts) as part of hedged/arbitrage exposure.

The unhedged portion, consisting of short derivatives, will range from 0% to 25%. The strategy will also invest 25% to 35% in debt and money market instruments (including units of debt-oriented mutual fund schemes), and up to 10% in units issued by REITs and InvITs (within prescribed SEBI limits).

Investors are advised to read the Investment Strategy Information Document (ISID) and scheme-related documents carefully before investing. Mutual fund investments are subject to market risks.