SBI Mutual Fund Launches Magnum Equity Ex-Top 100 Long Short Fund for Diversified Investments

The SBI Mutual Fund has launched a new fund offer, Magnum Equity Ex-Top 100 Long Short Fund, which is set to open for subscription from August 7 and close on August 20. This new fund aims to provide investors with a unique opportunity to invest in a long-short equity strategy that focuses on companies outside the top 100 by market capitalisation.

Launch of Magnum Equity Ex-Top 100 Long Short Fund

The launch of the Magnum Equity Ex-Top 100 Long Short Fund marks a significant expansion of the SBI Funds Management’s Specialised Investment Fund platform. According to Debasish Mishra, MD and CEO, SBI Funds Management, the fund reflects the company’s focus on disciplined, research-driven solutions that cater to India’s evolving market opportunities.

The fund’s systematic long-short construct is designed to provide investors with a diversified portfolio that balances risk and returns. It will primarily invest in equity and equity-related instruments of companies outside the top 100 by market capitalisation, while utilising limited short exposure through derivatives to enhance returns and manage risk.

Key Features of the Fund

The Magnum Equity Ex-Top 100 Long Short Fund will have a minimum purchase amount of Rs 10 lakh for new investors and Rs 1 lakh for existing investors, with a maximum investment limit of Rs 10 lakh across all investment strategies of Magnum SIF at PAN level and pattern of holding.

The fund will also have an exit load of 1% of applicable NAV if units purchased or switched in from another investment strategy of the Fund are redeemed or switched out within 3 months from the date of allotment.

Investment Strategy and Portfolio

The fund will primarily invest 65% to 100% of its assets in equity and equity-related instruments of companies excluding the top 100 companies by market capitalisation, including REITs.
It may invest up to 35% in equity and equity-related instruments of the top 100 companies by market capitalisation, including REITs.
The fund may also invest up to 35% in debt and money market instruments, up to 20% in units issued by InvITs, and up to 35% in units of mutual funds, including Gold and Silver ETFs.
Exposure to gold through investment in units of mutual fund schemes of the same or another asset management company shall not exceed 5% of the net asset value of the investment strategy.
The fund may also seek investment opportunities in foreign securities, including ADRs, GDRs, foreign equity, overseas ETFs, and debt securities, subject to applicable regulations.

Key Takeaways

The Magnum Equity Ex-Top 100 Long Short Fund is a unique long-short equity strategy that focuses on companies outside the top 100 by market capitalisation.
The fund has a minimum purchase amount of Rs 10 lakh for new investors and Rs 1 lakh for existing investors.
The fund will have an exit load of 1% of applicable NAV if units purchased or switched in from another investment strategy of the Fund are redeemed or switched out within 3 months from the date of allotment.

FAQs

What is the minimum purchase amount for the Magnum Equity Ex-Top 100 Long Short Fund?

The minimum purchase amount for new investors is Rs 10 lakh, while for existing investors, it is Rs 1 lakh per application.

What is the maximum investment limit for the Magnum Equity Ex-Top 100 Long Short Fund?

The maximum investment limit is Rs 10 lakh across all investment strategies of Magnum SIF at PAN level and pattern of holding.

What is the exit load for the Magnum Equity Ex-Top 100 Long Short Fund?

The fund will have an exit load of 1% of applicable NAV if units purchased or switched in from another investment strategy of the Fund are redeemed or switched out within 3 months from the date of allotment.

Conclusion

The Magnum Equity Ex-Top 100 Long Short Fund is a unique investment opportunity that provides investors with a long-short equity strategy that focuses on companies outside the top 100 by market capitalisation. With a minimum purchase amount of Rs 10 lakh for new investors and Rs 1 lakh for existing investors, this fund is an attractive option for investors looking to diversify their portfolio. We recommend that investors carefully evaluate their investment goals and risk tolerance before investing in the Magnum Equity Ex-Top 100 Long Short Fund.