**SBI Mutual Fund Launches First Specialized Investment Fund: Should You Invest?**
*By Dwaipayan Roy | Sep 24, 2025, 07:59 PM*
SBI Mutual Fund has introduced its maiden investment strategy under the newly introduced Specialized Investment Fund (SIF) framework. The fund, named **Magnum Hybrid Long Short Fund (MHLSF)**, offers a multi-asset approach by investing across equities, debt, derivatives, and REITs/InvITs.
### What Is the Magnum Hybrid Long Short Fund?
Designed specifically for conservative investors, this fund aims to deliver optimal risk-adjusted returns while maintaining lower volatility. By blending various asset classes and employing hedged strategies, the fund provides flexibility to navigate different market cycles effectively.
### Key Features and Investment Strategy
– **Multi-Asset Allocation:**
Between 65-75% of assets will be allocated to equity instruments, with hedged exposure ranging from 0-75%. Additionally, the fund may hold unhedged short derivatives up to 25%.
Debt and money market instruments will make up 25%-35% of the portfolio, while REITs/InvITs exposure will be capped at 10%.
– **Risk Management:**
The fund employs long-short strategies and hedging techniques to reduce downside risk and volatility.
### Potential Tax Benefits Under SIF Framework
One attractive aspect of investing under the SIF framework is the potential tax efficiency. Long-term capital gains (LTCG) held for over 12 months are taxed at 12.5%, plus applicable surcharge and cess. Investors can also benefit from an exemption up to ₹1.25 lakh per financial year on LTCG.
### Fund Details and Launch Information
– **New Fund Offer (NFO) Period:** October 1 to October 15, 2025
– **Minimum Application Amount:** ₹10 lakh
– **Minimum Additional Purchase:** ₹10,000
### Management Team
The Magnum Hybrid Long Short Fund will be managed by **Gaurav Mehta, CFA**, who serves as Head of SIF, Equity. Gaurav brings considerable expertise to the portfolio’s management and strategic direction.
### About SBI Mutual Fund
SBI Funds Management Pvt Ltd is a joint venture between the State Bank of India and Amundi, one of Europe’s largest asset managers. As of August 31, 2025, SBI Mutual Fund manages assets totaling around ₹11.9 lakh crore.
### Benchmark
The fund’s benchmark is the **NIFTY 50 Hybrid Composite Debt 50:50 Index TRI**, reflecting its hybrid nature across equity and debt.
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### Should You Invest?
The Magnum Hybrid Long Short Fund is suited for conservative investors who seek diversification across asset classes with an emphasis on risk-adjusted returns and volatility management. Its multi-asset and hedged strategy, combined with tax advantages under the SIF framework, make it an interesting proposition for those with an investment horizon suitable for the minimum investment ticket and risk profile.
As always, investors should assess their financial goals, risk tolerance, and consult with a financial advisor before investing.
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**Disclaimer:** This article is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results.
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