The new fund offer or NFO of the fund will be open for subscription from August 7 and will close on August 20.
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The investment objective of the strategy is to generate long-term capital appreciation by investing primarily in equity and equity-related instruments of stocks outside the Top 100 by market capitalisation, while utilising limited short exposure through derivatives to enhance returns and manage risk.
“The launch of the Magnum Equity Ex-Top 100 Long Short Fund marks a meaningful expansion of our Specialised Investment Fund platform. It reflects our focus on disciplined, research-driven solutions that keep pace with India’s evolving market opportunities,” said Debasish Mishra, MD and CEO, SBI Funds Management.
“With its emphasis beyond the top 100 companies and its systematic long-short construct, this fund broadens our product suite in a way that supports the diverse and increasingly sophisticated expectations of investors. Our effort remains centred on delivering thoughtful, well-structured strategies that create long-term value while aligning with the changing dynamics of the investment landscape,” Mishra further said.
The strategy will primarily invest 65% to 100% of its assets in equity and equity-related instruments of companies excluding the top 100 companies by market capitalisation including REITs and may invest up to 35% in equity and equity-related instruments of the top 100 companies by market capitalisation including REITs.It may also invest up to 35% in debt and money market instruments, up to 20% in units issued by InvITs (within SEBI-prescribed limits), and up to 35% in units of mutual funds, including Gold and Silver ETFs. Exposure to gold through investment in units of mutual fund schemes of the same or another asset management company shall not exceed 5% of the net asset value of the investment strategy.
The investment strategy may also seek investment opportunities in foreign securities, including ADRs, GDRs, foreign equity, overseas ETFs, and debt securities, subject to applicable regulations. Such investment shall not exceed 35% of the net assets of the investment strategy.
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For new investors in Magnum SIF, the minimum purchase amount is Rs 10 lakh and in multiples of Re 1 thereafter. For existing investors, it is Rs 1 lakh per application and in multiples of Re 1 thereafter, provided the aggregate existing investment is not less than Rs 10 lakh across all investment strategies of Magnum SIF at PAN level and pattern of holding.
For ongoing investments, an exit load of 1% of applicable NAV is charged if units purchased or switched in from another investment strategy of the Fund are redeemed or switched out within 3 months from the date of allotment. No exit load is charged if such units are redeemed or switched out after 3 months from the date of allotment.
The benchmark for the investment strategy is BSE 500 TRI and it will be managed by Gaurav Mehta.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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