SBI Mutual Fund launches Magnum Hybrid Long Short Fund under new SIF framework

SBI Mutual Fund launches Magnum Hybrid Long Short Fund under new SIF framework

SBI Mutual Fund, India’s largest fund house, has announced the launch of its first investment strategy under the new Specialized Investment Fund (SIF) framework-- the Magnum Hybrid Long Short Fund. Using a combination of debt, equity, and derivatives, the new approach seeks to combine long-term capital growth with income generation.

Subscriptions for the New Fund Offer (NFO) will open from October 1 through October 15, 2025. The minimum amount for investors to apply is ₹10 lakh, and the starting price for additional purchases is ₹10,000. The plan provides redemption options twice a week, on Mondays and Thursdays, and permits daily subscriptions.

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.

Hybrid strategy with a twist

With hedged positions up to 75% using instruments like index futures, stock futures, options, covered calls, and protective puts, the Magnum Hybrid Long Short Fund will invest 65–75% in stocks. Between 0% and 25% will be the unhedged portion, which includes short derivatives. Additionally, debt and money market instruments will account for 25–35% of the portfolio, with REITs and InvITs being permitted to hold up to 10%. The NIFTY 50 Hybrid Composite Debt 50:50 Index TRI will be used as a benchmark for the scheme's performance.

The strategy is designed to generate regular income through derivative opportunities such as covered calls and arbitrage, while also pursuing long-term capital appreciation via unhedged equity exposure.

SBI Mutual Fund on the launch

Calling the launch a “strategic evolution,” Nand Kishore, MD & CEO of SBI Funds Management Limited, said, “The Magnum Hybrid Long Short Fund, the first under the Magnum SIF framework, demonstrates our commitment to delivering value to investors across market cycles.”

D P Singh, Deputy MD & Joint CEO, added that Magnum SIF is positioned as a bridge between the company’s mutual fund and portfolio management offerings. “Our first strategy reflects our focus on innovation and investor-centric solutions. We look forward to introducing more differentiated strategies under Magnum SIF in the future,” he said.

The fund will be managed by Gaurav Mehta, CFA, Head – SIF, Equity. Mehta has been with SBI Funds Management since 2018 and has led the equity investment strategy for Magnum SIF since July 2025.

With this launch, SBI Mutual Fund is not only expanding its product suite but also bringing a new investment option to investors looking for a balance between income, risk management, and long-term growth.