NFO Launch: SBI Mutual Fund Launches Magnum Hybrid Long Short Fund; Check Details

SBI Mutual Fund has announced the launch of the Magnum Hybrid Long Short Fund, the first investment strategy under its newly introduced Specialised Investment Fund (SIF) framework. The strategy offers a mix of debt, equity, and derivatives exposure to balance the potential for long-term capital growth and income production.

NFO Details

The Magnum Hybrid Long Short Fund's New Fund Offer (NFO) will be available for subscription between October 1 and October 15, 2025. In addition to allowing daily subscriptions, the program will allow redemptions twice a week on Mondays and Thursdays. The minimum application amount is Rs 10 lakh, with subsequent investments starting from Rs 10,000.

The Magnum Hybrid Long Short Fund, with the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI as its benchmark, will be managed by Gaurav Mehta, CFA, Head – SIF, Equity at SBI Funds Management.

Nand Kishore, MD & CEO, SBI Funds Management Limited, said: "The launch of our Specialised Investment Fund (SIF) framework represents a strategic evolution in SBI Mutual Fund's journey. 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."

D P Singh, Deputy MD & Joint CEO, SBI Funds Management Limited, said: "The launch of Magnum SIF represents a significant step in expanding our product suite with differentiated offerings. Our first investment strategy, the Magnum Hybrid Long Short Fund, reflects our focus on innovation and investor-centric solutions, and we look forward to introducing more differentiated strategies under Magnum SIF in the future."

Allocation

As per the SBI Mutual Fund, the fund will allocate 65 to 75 per cent of its assets to equity and equity-related instruments, with the hedged portion ranging from 0 to 75 per cent in derivatives such as index futures, stock futures, options, and covered calls.

The unhedged portion, consisting of short derivatives, will be limited to 0 to 25 per cent. Additionally, the fund will allocate 25 to 35 per cent to debt and money market instruments and up to 10 per cent in REITs and InvITs, within SEBI's prescribed limits.

Who Can Invest

According to the SBI Mutual Fund release, the Magnum Hybrid Long Short Fund is suitable for investors seeking long-term capital appreciation through an interval investment strategy that predominantly invests in equity and debt securities, including limited short exposure through derivatives.