Magnum SIF by SBI Mutual Fund garners over Rs 1,100 crore in Equity Ex-Top 100 Long Short Fund NFO

Magnum SIF, launched by SBI Mutual Fund, collected Rs 1,154 crore through its second investment strategy, Magnum Equity Ex-Top 100 Long Short Fund, according to a press release by the fund house.

The new fund offer (NFO) of the fund was open for subscription from August 7 to August 20 and received strong investor interest, reflecting growing awareness and acceptance of the SIF framework and the demand for differentiated investment strategies that seek to participate in market opportunities while managing portfolio volatility, the release said.

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The fund house said that this is the highest NFO mobilisation so far in the Equity SIF category. Magnum Equity Ex-Top 100 Long Short Fund is an open-ended investment strategy predominantly investing in equity and equity-related instruments, including limited short exposure in equity through derivative instruments, of stocks outside the top 100 companies by market capitalisation.

“The strong response to the Magnum Equity Ex-Top 100 Long Short Fund NFO reflects investors’ growing interest in differentiated risk strategies and also their trust in our research-led capabilities across the market. We will continue to build a diversified suite of investment strategies under our Magnum SIF brand that serve investors with clarity and conviction and help them get greater flexibility in portfolio construction,” said Debasish Mishra, MD & CEO, SBI Funds Management.

The investment objective of the strategy is to generate long-term capital appreciation by investing primarily in equity and equity-related instruments of stocks outside the top 100 by market capitalisation, while utilising limited short exposure through derivatives to enhance returns and/or manage risk.

“SIFs or specialised investment funds are designed to give investors the best of both worlds: the regulatory comfort of a mutual fund structure and the flexibility typically seen in alternative investment frameworks such as AIF and PMS. The ability to short and flexible use of options allows for differentiated risk-reward outcomes, while retaining the tax efficiency of a mutual fund,” said Gaurav Mehta, CFA, Head, SIF Equity.

The strategy will primarily invest 65% to 100% of its assets in equity and equity-related instruments of companies excluding the top 100 companies by market capitalisation, including REITs, and may invest up to 35% in equity and equity-related instruments of the top 100 companies by market capitalisation, including REITs.

It may also invest up to 35% in debt and money market instruments, up to 20% in units issued by InvITs, within SEBI-prescribed limits, and up to 35% in units of mutual funds, including Gold and Silver ETFs. Exposure to gold through investment in units of mutual fund schemes of the same or another asset management company shall not exceed 5% of the net asset value of the investment strategy.

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For new investors in Magnum SIF, the minimum purchase amount is Rs 10 lakh, and subsequent investments can be made in multiples of Re 1. For existing investors, the minimum application amount is Rs 1 lakh, subject to the aggregate existing investment not being less than Rs 10 lakh across all investment strategies of Magnum SIF at the PAN level and pattern of holding.

For redemptions, an exit load of 1% of the applicable NAV is charged if units purchased or switched in from another investment strategy of the Fund are redeemed or switched out within three months from the date of allotment. No exit load is charged if such units are redeemed or switched out after three months from the date of allotment.

The benchmark for the investment strategy is BSE 500 TRI, and it will be managed by Gaurav Mehta.

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