The fund primarily invests in equity and debt securities, with limited short exposure in both through derivatives. The New Fund Offer (NFO) will be open for subscription from October 01, 2025, to October 15, 2025.
“The investment objective of the strategy is to generate regular income mainly through derivatives strategies such as covered calls, arbitrage opportunities in the cash and derivatives segments of equity markets, and debt and money market instruments. It also aims for long-term capital appreciation through unhedged exposure to equity and equity-related instruments. There is no guarantee that the strategy will achieve its investment objectives,” according to the SBI mutual funds release.
Nand Kishore, MD & CEO, SBI Funds Management Limited, said, “The Magnum Hybrid Long Short Fund, the first investment strategy under Magnum SIF, demonstrates our capabilities and commitment to delivering value to investors across market cycles.”
Gaurav Mehta, CFA, will manage the Fund as Head – SIF, Equity. He joined SBI Funds Management Limited in November 2018 as an Equity Analyst and later managed equity funds. In October 2021, he was promoted to CIO – Alternatives, Equity, overseeing the equity part of Portfolio Management Services. Since July 2025, he has been leading the equity investment strategy for Magnum SIF as Head – SIF, Equity.
D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said, “Magnum SIF now serves as a bridge between our mutual fund and portfolio management services, delivering innovative investment strategies for today’s evolving investors.”
The Magnum Hybrid Long-Short Fund permits daily subscriptions, with redemptions twice a week on Mondays and Thursdays. The minimum application amount is ₹10 lakh, and subsequent purchases must be at least ₹10,000, according to the press release.
Investments can be made via lump sum payments and Systematic Investment Plan (SIPs). The chosen benchmark for this investment strategy is the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI.
The strategy will mainly allocate 65% to 75% of its assets to equity and related instruments. The hedged segment will vary from 0% to 75%, encompassing index futures, stock futures, index options, stock options, and other derivatives like covered calls and protective puts used for hedging or arbitrage.
“The unhedged portion of short derivatives will be 0% to 25%. The strategy will also invest 25% to 35% in debt and money market instruments, and up to 10% in REITs and InvITs units (within SEBI limits),” per the press release.