Dyna SIF by 360 ONE Asset
DynaSIF Equity Long-Short Fund
India's hedge fund equivalent for retail investors — an open-ended equity long-short strategy with up to 25% unhedged short exposure through derivatives for alpha generation and downside protection.
by 360 ONE Asset Management Limited (formerly IIFL Asset Management)
₹10L
Min Investment
Level 5
Risk Band (Highest)
Daily
Redemption
2.25%
Max TER
NFO Information
NFO Open Date
February 6, 2026
NFO Close Date
February 20, 2026
NFO Price
₹1,000 per unit
Benchmark
BSE 500 TRI
Equity Long-Short Strategy
Long Equity
Core long positions using multi-factor stock selection — qualitative (macro, moats, thematic trends) + quantitative (valuation, momentum, regime analysis).
Short Derivatives
Unhedged short positions through derivatives to profit from declining stocks, reduce portfolio beta, and create market-neutral strategies.
Debt & Liquidity
Debt and money market instruments for liquidity management and tactical cash positioning during defensive periods.
Asset Allocation Matrix
| Component | Min % | Max % |
|---|---|---|
| Equity / Equity-related | 80% | 100% |
| — Unhedged Short Exposure | 0% | 25% |
| Debt & Money Market | 0% | 20% |
| InvITs | 0% | 20% |
Note: Total gross exposure capped at 100% of NAV. Options bought counted at premium paid; options sold at market value of underlying.
Short Derivative Strategies — The Differentiator
Shorts are initiated on stocks exhibiting business weakness, end market deterioration, market share loss, excessive valuation, or value migration in the business chain.
| Strategy Type | Description | Position Limit |
|---|---|---|
| Equity Long-Short | Single stock shorts, sector pairs, merger arbitrage | ~5% per stock |
| Sector Long-Short | Net sector exposure through relative value trades | ~20% net sector |
| Index Trading | Directional bets via Nifty/Bank Nifty, index pairs | ~5% exposure |
| Options Trading | Covered calls for yield, straddles/strangles for volatility | ~5% per position |
| Portfolio Hedging | Stock arbitrage through options/futures, index derivatives | Tactical |
Investment Approach — Multi-Factor Framework
Qualitative Factors
- Macro environment assessment
- Industry dynamics evaluation
- Thematic identification (transformational trends)
- Business moat analysis
Quantitative Factors
- Valuation metrics (P/E, P/B, EV/EBITDA)
- Factor participation (quality, momentum, value)
- Market regime analysis
- Technical price trends
Performance Scenario Analysis
How the fund's NAV may behave under different market conditions with varying alpha scenarios
| Scenario | Nifty Move | Fund Return | vs. Long-Only |
|---|---|---|---|
| No alpha, no shorts | +10% | +9.5% | Baseline |
| 25% short, zero alpha | +10% | +4.5% | -5.0% |
| 25% short, +5% alpha | +10% | +9.25% | -0.25% |
| 25% short, -3% alpha | +10% | +1.65% | -7.85% |
Market Correction (-20%)
Where long-short shines
Net impact: -9% vs long-only -19%
Short Squeeze
Shorted stocks rally 25%
Net impact: +0.75% vs long-only +9.5%
Steady Bull (+15%)
Low volatility grind-up
After costs: +4.75% vs long-only +13.5%
Fund Manager
Harsh Aggarwal
Head of Alternative Strategies
Cost Structure & TER
| AUM Range | Max TER |
|---|---|
| First ₹500 Cr | 2.25% |
| Next ₹250 Cr | 2.00% |
| Next ₹1,250 Cr | 1.75% |
| Next ₹3,000 Cr | 1.60% |
| Next ₹5,000 Cr | 1.50% |
| Beyond ₹10,000 Cr | Progressive reduction |
NIL
Entry Load
0.50%
Exit Load (<3 months)
~2.50%
All-in Cost (est.)
Cost Impact Analysis
On ₹10L investment: ~₹25,000/year all-in costs (TER + GST + transaction). Fund must beat BSE 500 by 2.5%+ annually just to justify costs. Brokerage: Cash market up to 12 bps | Derivatives up to 5 bps (plus GST).
Investment Requirements
During NFO
- Minimum Investment₹10,00,000
- Accredited Investors₹1,00,000
- NFO Price₹1,000/unit
Post-NFO (Continuous)
- SIPAvailable after ₹10L
- RedemptionDaily (T+3 payout)
- Multiple ChannelsPhysical, Online, MFU
₹10 Lakh Threshold (PAN Level)
If NAV decline causes investment to fall below ₹10L, you get 30-day notice to top up. Forced redemption if not complied — in a market crash, you could be force-liquidated at the bottom.
Redemption & Liquidity
Subscription
Daily
Business days
Redemption
Daily
Open-ended structure
Payout
T+3 Days
Working days
Exit Load
0.5%
<3 months only
Segregated Portfolio Provision
Fund can isolate credit events via segregated portfolios, protecting remaining investors from concentrated credit risks in the debt portion.
Tax Treatment — Critical Consideration
| Holding Period | Tax Rate | Notes |
|---|---|---|
| < 12 months (STCG) | 20% | Plus STT on equity transactions |
| > 12 months (LTCG) | 12.5% | On gains exceeding ₹1.25 lakh |
⚠️ Equity Status Risk
If debt allocation exceeds thresholds, the fund COULD lose equity-oriented status and be reclassified as a debt fund — resulting in STCG at slab rate (up to 42.74%) instead of 20%. This is a material risk for HNI investors in high tax brackets.
Key Risk Factors
Who Should Invest?
Suitable For
- Sophisticated investors who understand derivatives & short-selling
- HNI/UHNIs with ₹50L+ portfolios (₹10L = 20% or less)
- Market timers wanting tactical downside protection
- Multi-strategy portfolio builders (10-15% allocation)
- Risk-seeking allocators comfortable with Risk Band 5
NOT Suitable For
- First-time investors — complexity is overwhelming
- Long-term buy-and-hold investors — costs erode compounding
- Risk-averse investors — Level 5 is maximum risk
- Tax-sensitive investors — equity status can be lost
- Those seeking passive income — no consistent IDCW policy
Competitive Positioning — DynaSIF vs Alternatives
| Factor | DynaSIF L/S | Flexi-Cap MF | Cat III AIF |
|---|---|---|---|
| Min Investment | ₹10 Lakh | ₹100 | ₹1 Crore |
| Downside Protection | Via shorts ✓ | Market-linked | Higher leverage |
| Cost | 2.25% | 0.75% | 2% + 20% carry |
| Complexity | Very High | Low | Highest |
| Liquidity | Daily (T+3) | Daily (T+3) | 3-year lock-in |
| Upside Capture | Lower (due to shorts) | Full | Variable |
DynaSIF sits between mutual funds and AIFs — more sophisticated than MFs, more accessible than AIFs. Best suited as a 10-15% tactical allocation within a diversified portfolio.
SIF Prime Verdict — 6.5/10
| Criterion | Score | Weight |
|---|---|---|
| Strategy Innovation | 8/10 | 20% |
| Fund Manager Credentials | 6/10 | 25% |
| Cost Competitiveness | 5/10 | 15% |
| Risk Management | 7/10 | 20% |
| Transparency | 5/10 | 10% |
| Structural Features | 7/10 | 10% |
Why It Could Work
- • Strong in choppy/bearish markets (2026-27 scenario)
- • Proven manager with long-short AIF experience
- • Valuable portfolio diversification if beta <0.6
- • SIF framework matures, tax clarity improves
Key Concerns
- • Zero verified track record for this specific fund
- • High cost hurdle (2.5%+ alpha needed annually)
- • 7+ sub-strategies = murky performance attribution
- • Tax reclassification risk for HNI investors
Frequently Asked Questions
Important Disclaimer
This analysis is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any investment. SIF Prime is an AMFI Registered distributor and does not provide personalized financial advice. Past performance is not indicative of future results. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. The SIF framework is new and subject to regulatory changes. Short-selling involves theoretically unlimited risk. Please consult your financial advisor before making investment decisions. The rating and analysis represent SIF Prime's independent assessment based on publicly available information.
Interested in DynaSIF Equity Long-Short Fund?
NFO closes February 20, 2026. Contact our team for detailed investment guidance and documentation.
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