SHOULD YOU INVEST IN SBI SIF
Minimum investment Requirement in one go is Rs. 10 Lakh so this article is for you only if you can invest Rs. 10 Lakh in one Fund and one go.... then read ahead...
Magnum
Hybrid Long-Short Fund NFO Review 2025 – Should You Invest in SBI SIF?
SBI Mutual Fund has launched a new offering under its Specialised
Investment Fund (SIF) platform – the Magnum Hybrid Long-Short Fund. This
innovative product blends equity, derivatives, and fixed income strategies to
deliver a balance between growth and stability. The NFO opens on October 1, 2025 and closes on October 15, 2025. If you are an investor seeking hybrid strategies with
hedged and directional exposure, this article provides an in-depth review.
What is SIF?
Specialised Investment
Funds (SIFs) are investment strategies offered under a pooled structure that
combine equity, debt, and alternative strategies. Unlike conventional mutual
funds, SIFs can take both long and short positions in equities and derivatives,
allowing fund managers to capture opportunities across market cycles. SBI SIF
offers multiple strategies, and the Magnum Hybrid Long-Short Fund is one of its
flagship hybrid strategies.
SIFs under SBI include:
- Arbitrage & Derivatives-focused strategies – target low volatility
returns.
- Hybrid Long-Short strategies – combine equity and derivatives for
balanced risk/return.
- Fixed Income-oriented strategies – focus on debt with
tactical equity exposure.
- Thematic or event-driven strategies – capitalize on special
situations.
The Magnum Hybrid
Long-Short Fund falls under the hybrid long-short category, which uses a mix of
hedged equity, selective unhedged equity, derivatives, and debt instruments.
Magnum
Hybrid Long-Short Fund NFO Issue Details
- Scheme Name: Magnum Hybrid Long-Short Fund (Magnum SIF)
- Mutual Fund: SBI Mutual Fund
- NFO Opens: 1 October 2025
- NFO Closes: 15 October 2025
- Minimum Investment: ₹. 10,00,000 (aggregate across SBI SIF strategies)
- Benchmark Index: NIFTY 50 Hybrid Composite Debt 50:50 Index
- Plans & Options: Regular & Direct Plans; Growth and IDCW options
available.
- Fund Manager: Mr. Gaurav Mehta
- Re-opening for Continuous Sale/Repurchase: Within 5 business days from
the date of allotment
Investment
Objective
The objective of the
Magnum Hybrid Long-Short Fund is to generate regular income through arbitrage
opportunities and derivative strategies like covered calls, and to achieve
long-term capital appreciation through selective unhedged equity exposure.
Asset
Allocation Pattern
- Equity & Equity related instruments: 65–75%
o
Hedged/Arbitrage/Derivative
strategies: up to 75%
o
Unhedged
(short derivatives): up to 25%
- Debt & Money Market Instruments: 25–35%
- Units issued by REITs & InvITs: up to 10%
- Overseas Securities/ETFs: up to 35% of net assets
This allocation aims to
provide a blend of income, liquidity, and growth potential while maintaining
risk control through derivatives.
Why
to Invest in Magnum Hybrid Long-Short Fund
- Diversification: Exposure across equity, derivatives, and debt.
- Active Risk Management: Use of hedging and arbitrage reduces volatility.
- Potential for Consistent Returns: Arbitrage income plus
selective equity upside.
- Flexibility: Ability to take short positions to benefit from
market declines.
- Professional Management: Managed by SBI Mutual Fund’s experienced investment
team.
Risk Factors
- Market Risk: Equity and derivatives are subject to market
fluctuations.
- Credit & Interest Rate Risk: Debt investments carry credit
and interest rate risks.
- Derivatives Risk: Leveraged instruments can amplify gains and losses.
- Liquidity Risk: Limited redemption (twice a week) could restrict
liquidity.
- Foreign Investments Risk: Currency and political risks on overseas
exposures.
Investors must read the
Investment Strategy Information Document (ISID) for full risk disclosures.
Who
Should Invest in Magnum Hybrid Long-Short Fund?
- Investors with at least ₹. 10 lakhs to allocate
across SBI SIF strategies.
- Those seeking a hybrid strategy combining
equity, derivatives, and debt.
- Investors with moderate-to-high risk appetite
who understand derivatives-based strategies.
- Those aiming for consistent returns with some
growth potential over the medium to long term.
Conclusion – Should You
Invest in Magnum Hybrid Long-Short Fund?
The Magnum Hybrid Long-Short
Fund NFO offers a unique proposition for investors seeking a diversified hybrid
strategy under SBI SIF. With a blend of arbitrage income, selective equity
upside, and active risk management, it can suit HNI investors looking for
medium- to long-term wealth creation with controlled volatility. However,
investors should be comfortable with derivatives and hybrid strategies, and
must meet the ₹. 10 lakh minimum threshold.
Please note that article is only for your understanding and not an inducement to invest. Please understand that any type of Investment in capital Market involves Risk .
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