ICICI Prudential Mutual Fund launched two new investment strategies under its Specialised Investment Fund (SIF) platform, namely iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund, to cater to investors looking for more flexible investment options during volatile market conditions.
The new fund offers (NFOs) opened for subscription on May 19 and will remain open till June 2, 2026, the fund house said.
The schemes have been launched under the Securities and Exchange Board of India's (Sebi) newly introduced SIF framework, which bridges the gap between traditional mutual funds and investment products like Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs).
The launch comes at a time when fund houses are increasingly moving beyond traditional long-only mutual fund strategies as market volatility, changing sector trends and broader economic uncertainty continue to influence investor sentiment.
New Strategies Designed For Volatile Market Conditions
According to ICICI Prudential AMC, both strategies are aimed at offering adaptive portfolio construction through long-short positioning and derivatives-based risk management.
Commenting on the launch, Sankaran Naren, executive director and CIO, ICICI Prudential AMC, said, “Markets are increasingly characterised by sharp rotations across asset classes, sectors, styles and market capitalisations. In such an environment, static allocation approaches may not always be sufficient. Through the iSIF platform, we aim to provide investors with more flexible strategies that can dynamically adapt to changing market conditions using asset allocation frameworks, derivatives and long-short positioning.”
iSIF Active Asset Allocator Long-Short Fund
The iSIF Active Asset Allocator Long-Short Fund has been launched as an interval investment strategy. It will invest across multiple asset classes, including equities, debt, commodity derivatives, InvITs, and equity and debt derivatives. The strategy can also take limited short positions through permitted derivative instruments.
According to the fund house, the strategy will actively change its asset allocation based on cross-asset valuations, macroeconomic trends and risk-adjusted investment opportunities.
The strategy will invest in equities to seek long-term capital appreciation, while debt instruments will be used to provide stability and generate carry opportunities. It will also invest in commodities to improve diversification and hedge against inflation, along with Infrastructure Investment Trusts (InvITs) to further diversify the portfolio.
ICICI Prudential AMC said the strategy uses a proprietary in-house asset allocation model incorporating valuation indicators, technical signals and macro overlays. It follows a counter-cyclical “buy low, sell high” philosophy by increasing equity exposure when valuations are attractive and reducing exposure when markets become expensive.
According to the press release, derivatives exposure in the strategy can go up to 100 per cent, while unhedged short exposure can be up to 25 per cent of net assets.
The strategy will be benchmarked against a composite index comprising 50 per cent Nifty 500 Total Returns Index (TRI), 40 per cent Nifty Composite Debt Index, 7 per cent domestic gold prices and 3 per cent domestic silver prices.
The scheme will be jointly managed by Ihab Dalwai, Sharmila D’silva, Masoomi Jhurmrvala, Manish Banthia, Akhil Kakkar and Gaurav Chikne.
iSIF Equity Long-Short Fund
The iSIF Equity Long-Short Fund is an open-ended equity investment strategy that will primarily invest in listed equities and equity-related instruments. The strategy can also take limited short exposure through derivatives.
According to the fund house, the strategy will look for investment opportunities across market capitalisations, sectors and investment styles. It will track more than 650 companies under its coverage universe to identify potential opportunities.
The stock selection process will be based on several factors, including business fundamentals, industry structure, quality of management, key earnings drivers and valuations relative to growth prospects.
The press release added that the strategy will attract a long-term capital gains (LTCG) tax rate of 12.5 per cent for investments held for more than 12 months.
The strategy may also invest up to 35 per cent in overseas equity and equity-related instruments.
The scheme will be benchmarked against the Nifty 500 Total Returns Index (TRI) and will be managed by Mittul Kalawadia, Nitya Mishra and Sri Sharma.
Investment Threshold And Risk Profile
For both strategies, first-time investors in the SIF category will need to make a minimum investment of Rs 10 lakh. Existing investors who have already met this threshold can invest with a minimum amount of Rs 10,000.
The strategies carry relatively higher risks because of their use of derivatives and dynamic asset allocation structures. These risks include the possibility of capital loss, liquidity concerns and higher market volatility.
ICICI Prudential AMC also highlighted this in its disclaimer, stating that investments in SIFs involve “relatively higher risk including potential loss of capital, liquidity risk and market volatility.”
