SBI MF's Magnum SIF to debut Oct 1 with hybrid long-short scheme

SBI Mutual Fund's (MF’s) Magnum SIF is set to launch its first scheme on October 1, a hybrid long-short fund which will be similar to absolute return funds and is targeted at investors seeking debt-like returns with equity taxation. According to the fund house, the scheme can deliver a few percentage point higher returns than arbitrage funds. However, the fund carries slightly higher risks compared to arbitrage funds. The scheme will follow a collar strategy wherein the scheme will sell call options and simultaneously buy put options of stocks in its portfolio. The strategy will generate premium income for the scheme, while also providing downside protection. However, the equity returns will be capped due to the call option. This strategy (covered equity) will form the core of the portfolio with 55-75 per cent allocation. The sch­eme will invest 25-35 per cent into debt in­s­tr­uments. The scheme also has the mandate to invest up to 10 per cent in real estate investment trusts and infrastructure investment trusts and up to 25 per cent in unhedged derivatives. Returns from the scheme will attract equity taxation. 

 

 

Sebi panel to urge  asset disclosure for leadership, say sources 

 

An external panel set up by the Securities and Exchange Board of India (Sebi) will recommend that its chairman and senior officials disclose their assets publicly to preempt  concerns related to conflict of interest, two sources with direct knowledge of the matter said. The panel's recommendations, if accepted, would bring Sebi in line with global practices. The panel was set up after previous Sebi chief, Madhabi Puri Buch, faced allegations of conflict of interest from the now-shuttered Hindenburg Research. (REUTERS)