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SBI MF launches first Specialised Investment Fund: Should you invest?
24 Sep 2025

SBI Mutual Fund has launched its first investment strategy under the Specialized Investment Fund (SIF) framework.

The new fund, called Magnum Hybrid Long Short Fund, adopts a multi-asset approach by investing in equities, debt, derivatives as well as REITs/InvITs.

The fund is specifically designed for conservative investors looking for optimal risk-adjusted returns with lower volatility.

So, should you invest? Let's see.

Potential tax benefits under SIF framework
Investment strategy

The Magnum Hybrid Long Short Fund provides flexibility to navigate market cycles. It also offers possible tax benefits under the SIF framework.

Under this, long-term capital gains over the 12 months are taxed at 12.5% plus applicable surcharge and cess, with an exemption of ₹1.25 lakh per financial year.

The fund's investment strategy includes income generation via derivatives strategies such as covered calls and arbitrage opportunities in equity and debt markets.

NFO to open on October 1
Fund specifics

The New Fund Offer (NFO) for the MHLSF will be open for subscription from October 1 to 15.

The minimum application is ₹10 lakh with a minimum extra purchase of ₹10,000.

Investments can be made via lump sum or systematic investment plans (SIPs).

Between 65-75% of assets shall be invested in equity instruments, with a hedged exposure ranging from 0-75%, unhedged short derivatives up to 25%, 25%-35% in debt and money market instruments, and up to 10% in REITs/InvITs.

Fund will be managed by Gaurav Mehta
Management details

The MHLSF will be managed by Gaurav Mehta, CFA, Head - SIF, Equity.

SBI Funds Management is a joint venture between the State Bank of India and Amundi.

As of August 31, SBI Mutual Fund has assets under management (AUM) of around ₹11.9 lakh crore.

The fund's benchmark is the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI.