Summary of this article
ICICI Prudential MF launched two long-short strategies under SIF
NFOs opened on January 16 and will close on January 30
Both investment strategies adopt long-short approaches designed to navigate volatile and uneven market conditions
The funds use derivatives, asset allocation and bottom-up stock selection to aim for better risk-adjusted returns across market cycles
ICICI Prudential Mutual Fund on January 16, 2026, announced the launch of two new offerings under its Specialised Investment Funds (SIF) platform, as the fund house looks to cater to investors seeking more flexible and sophisticated strategies amid volatile market conditions. These funds are iSIF Equity Ex-Top 100 Long-Short Fund and iSIF Hybrid Long-Short Fund.
The new fund offer (NFO) for both strategies opened on January 16, 2026, and will remain open till January 30, 2026. The products are being launched under the Securities and Exchange Board of India’s (Sebi) recently introduced SIF framework. This framework sits between traditional mutual funds and portfolio management services (PMS) or alternative investment funds (AIFs), offering investors more flexibility. The minimum investment required is Rs 10 lakh per Permanent Account Number (PAN) per SIF.
According to the fund house, both strategies follow long-short approaches and use a mix of derivatives, asset allocation and bottom-up stock picking to aim for better risk-adjusted returns and keep volatility in check across market cycles.
Sankaran Naren, executive director and CIO, ICICI Prudential Asset management Company (AMC), said during the launch: “Through the iSIF segment, we are offering investors investment strategies that are differentiated and those that can adapt to the evolving market condition by using approach which is permissible within the long-short investment strategies. The aim here is to deliver better risk-adjusted outcomes across market cycles.”
Sebi introduced the SIF framework to bridge the gap between mutual funds and PMS or AIF products. It gives fund managers greater flexibility in building portfolios while maintaining the transparency and regulatory oversight of mutual fund structures. Under this framework, SIFs are allowed to use long-short strategies and unhedged derivatives within specified limits.
iSIF Equity Ex-Top 100 Long-Short Fund
The iSIF Equity Ex-Top 100 Long-Short Fund is an open-ended strategy that focuses on stocks outside the top 100 companies by market capitalisation, as classified by the Association of Mutual Funds in India (Amfi). It aims to capture growth opportunities in the mid- and small-cap space, while managing the higher volatility typically associated with these segments through long-short positions and the use of derivatives.
The fund will take long positions in companies with strong fundamentals and selectively short stocks that appear overvalued. This is intended to help the portfolio participate in market upside while reducing the impact of sharp corrections or volatile phases.
The strategy is built on a bottom-up stock selection approach supported by ICICI Prudential Mutual Funds’ in-house research capabilities across sectors. The fund is benchmarked against the Nifty 500 TRI.
iSIF Hybrid Long-Short Fund
The iSIF Hybrid Long-Short Fund is an interval strategy that invests across both equity and debt, with the flexibility to take limited short positions in each asset class using derivatives. It aims to deliver more stable returns across market conditions by combining long-short equity positions, fixed income exposure and tactical derivative strategies.
The fund will actively manage its net equity exposure based on market valuations, trends and internal models. It will also look to tap special opportunities such as initial public offerings (IPOs), qualified institutional placements (QIPs), buybacks, and selective debt trades. By blending asset allocation with long-short strategies, the fund seeks to improve risk-adjusted returns over the medium to long term.
The strategy is benchmarked against the CRISIL Hybrid 50+50 Moderate Index.
How ICICI Prudential Plans To Generate Alpha Under iSIF
Beyond the two newly launched strategies, ICICI Prudential’s iSIF platform will rely on multiple levers to generate returns. These include active stock and sector selection, the use of derivative strategies such as covered calls and options, carry-based debt investments, and participation in capital market opportunities like IPOs, block deals and buybacks.
