NFO: October 1-15, 2025

Magnum Hybrid Long Short Fund

by SBI Mutual Fund

India's first professionally managed hybrid long-short fund that generates income while protecting your downside—designed for sophisticated investors seeking superior risk-adjusted returns.

₹10L
Min Investment
Level 2
Moderate Risk
2x/Week
Redemption
NSE/BSE
Exchange Listed

Triple-Pillar Investment Strategy

A unique combination of income generation, growth, and downside protection

Pillar 1: Income Generation

Cash-Futures Arbitrage

Simultaneously buy in spot market and sell in futures to lock in spreads

Covered Call Strategy

Write call options against holdings to earn premium income

Event-Based Arbitrage

Dividend, merger, buyback, and special situation opportunities

Pillar 2: Long Equity Exposure

Bottom-Up Selection

Fundamental analysis for stock selection across market caps

Thematic Views

Top-down sector allocation based on growth outlook

Allocation Range

35-75% in equity and equity-related instruments

Pillar 3: Short Positions

Downside Protection

Up to 25% in short futures, puts, and spreads

Alpha Generation

Returns from expected price declines in specific sectors

Portfolio Hedge

Tactical positioning based on market outlook

Asset Allocation Matrix

Strategic allocation across asset classes for optimal risk-adjusted returns

Asset ClassMin %Max %
Hedged Equity (Arbitrage, Covered Calls)0%75%
Short Derivatives0%25%
Debt & Money Market25%35%
REITs/InvITs0%10%
Overseas Securities0%35%

Performance Scenarios

How the fund is designed to perform across different market conditions

Sideways Market

Nifty Flat (6 months)

Pure Equity Fund0-2%
Magnum Hybrid7-10%

Arbitrage + covered calls + debt interest generate returns even when markets don't move

Bull Market

Nifty Up 15%

Pure Equity Fund14-16%
Magnum Hybrid9-12%

Participates in upside while covered calls and shorts slightly cap gains

Bear Market

Nifty Down 15%

Pure Equity Fund-13% to -15%
Magnum Hybrid+4% to +5%

Short positions + arbitrage + debt cushion the fall and generate positive returns

Who Should Invest?

This fund is designed for sophisticated investors with specific investment profiles

Suitable For

  • HNIs seeking balanced growth with income
  • Investors comfortable with hybrid strategies
  • Those seeking professional active management
  • Investors wanting equity exposure with downside cushion
  • Sophisticated investors understanding derivatives

Not Suitable For

  • Conservative investors seeking guaranteed returns
  • Those uncomfortable with derivatives strategies
  • Short-term investors (less than 3 years)
  • Investors needing daily liquidity
  • Those below ₹10 lakh investment threshold

Ideal Investor Profile

Horizon
3-5+ years
Risk Appetite
Moderate
Min Corpus
₹10 Lakhs+
Goal
Income + Growth

Mr. Gaurav Mehta

Head - SIF Equity

SBI Funds Management Limited

Fund Manager Profile

Education
PGDM (IIM Lucknow), B.Tech (IIT Bombay), CFA Charterholder
Experience
19+ years in Indian financial markets
Career Highlights
  • CIO - Alternatives Equity at SBIFML (Oct 2021)
  • Managed SBI Optimal Equity Fund (Cat III AIF)
  • Former Portfolio Manager at Ambit Investment Advisors
Expertise
Long-short strategies, Derivatives, Arbitrage, Hedge fund strategies

Fees & Liquidity

Expense Structure

Regular Plan TERUp to 2.25% + GST
Direct Plan TERLower (No commission)
Entry LoadNil
Exit Load (Regular):
0-15 days0.50%
15 days - 1 month0.25%
After 1 monthNil

Liquidity Features

SubscriptionDaily
RedemptionTwice Weekly (Mon & Thu)
Cut-off Time3:00 PM
PayoutWithin 3 working days
Exchange ListingNSE / BSE
Exchange SettlementT+2 basis

Why Choose Magnum Hybrid Long Short?

Unique Strategy Combination

Only hybrid fund combining arbitrage, covered calls, and tactical shorts

Downside Protection

Up to 25% short positions cushion market falls with premium income buffer

Income + Growth

Regular income from arbitrage and covered calls plus capital appreciation

Expert Management

Fund manager with hedge fund background and 19+ years experience

SBI Legacy

Backed by India's largest mutual fund house with 30+ years legacy

Flexible Liquidity

Twice-weekly redemptions plus exchange listing for intraday trading

Frequently Asked Questions

Important Risk Disclosure

Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Past performance may or may not be sustained in the future. There is no assurance that the investment objective will be achieved. Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.

Ready to Invest?

Start your investment journey with Magnum Hybrid Long Short Fund. Contact us for personalized assistance.

Related SIF Funds

Chat with us