SBIMutual Fund, India’s largest fund house, has introduced its inaugural scheme, the Magnum Hybrid Long Short scheme, under the Specialised Investment Fund category.
The scheme aims to generate regular income by primarily utilizing derivatives strategies such as covered calls and taking advantage of arbitrage opportunities across the cash and derivatives segments of the equity markets, as well as investing in debt and money market instruments. Although returns are not guaranteed, the fund house targets a return of 8-11%. The investment strategy stipulates that 65-75% of the portfolio will be allocated to equity, 25-35% to debt, and 10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs). The unhedged portion, which comprises short derivatives, will range from 0% to 25%.
Investments can be made via lump sum or Systematic Investment Plans (SIPs). The New Fund Offer (NFO) is set to open for subscription on October 1, with a minimum investment requirement of ₹10 lakh and a minimum additional purchase of ₹10,000. Redemptions will be available twice weekly, on Mondays and Thursdays.
The strategy’s benchmark is the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI. D.P. Singh, Deputy Managing Director and Joint CEO of SBI Funds Management, commented that the Magnum SIF serves as a bridge between mutual funds and portfolio management services, facilitating innovative investment strategies tailored for modern investors. He noted that the Magnum Hybrid Long Short Fund embodies a commitment to innovation and investor-centric solutions.
The announcement was published on September 24, 2025.
