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. (Complete Guide on SIF can be read here). SBI SIF offers multiple strategies, and the Magnum Hybrid Long-Short Fund is one of its flagship hybrid strategies.
Categories in SIF
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%
- Hedged/Arbitrage/Derivative strategies: up to 75%
- 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.
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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.
FAQs about Magnum Hybrid Long-Short Fund
- What is the NFO period of Magnum Hybrid Long-Short Fund?
- 1 October 2025 to 15 October 2025.
- What is the minimum investment required?
- ₹. 10 lakhs across SBI SIF strategies.
- What is the benchmark index?
- NIFTY 50 Hybrid Composite Debt 50:50 Index.
- Can retail investors invest small amounts?
- No, the minimum threshold is ₹. 10 lakhs.
- What are the plans available?
- Regular and Direct Plans; Growth and IDCW options.
- Who is the fund manager?
- Mr. Gaurav Mehta.
- How often can I redeem units?
- Redemption allowed twice a week (Monday & Thursday).
- Is this fund suitable for low-risk investors?
- No, it involves moderate-to-high risk due to derivatives.
- Does the fund invest overseas?
- Yes, up to 35% in overseas securities/ETFs.
- Is there any exit load?
- 0.50% if redeemed within 15 days, 0.25% if redeemed within 1 month, and no load thereafter.
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