Magnum Equity Ex-Top 100 Long Short Fund Launches: Seeks Capital Appreciation Beyond Mega Caps with Limited Derivatives Exposure

Magnum Equity Ex-Top 100 Long Short Fund Launches: Seeks Capital Appreciation Beyond Mega Caps with Limited Derivatives Exposure​

Mumbai, 12/06/2026 - SBI Mutual Fund has introduced the MAGNUM EQUITY EX-TOP 100 LONG SHORT FUND (MAGNUM SIF), an open-ended investment strategy aimed at generating long-term capital appreciation. This new fund is designed to concentrate on equities outside the top 100 companies by market capitalization, while strategically utilizing limited short exposure through derivative instruments for enhanced risk management and return optimization.

The launch of this Specialized Investment Fund (SIF) underscores a proactive approach towards mid-to-small cap opportunities, catering to investors seeking diversification away from large cap stocks' concentration risks. The fund is managed by Mr. Gaurav Mehta, who brings over 19 years of experience in the Indian financial markets.

Defining the Magnum SIF Investment Strategy​

The MAGNUM EQUITY EX-TOP 100 LONG SHORT FUND is categorized as an Equity Ex-Top 100 Long-Short Fund. Its core objective remains focused on generating long-term capital growth, primarily by investing in equity and equity-related instruments of stocks ranked outside the top 100 market capitalization companies.

This strategy employs a dynamic long-short equity approach. Indicative asset allocation shows that between 65% and 100% of net assets may be allocated to equities outside the top 100, while up to 35% can be held in debt or money market instruments for portfolio stability.

The strategy allows for limited unhedged short derivative positions, capping exposure at 25% of net assets. This feature enables the fund to capitalize on mispriced securities and mitigate risks effectively across the portfolio. The primary benchmark chosen for performance measurement is the BSE 500 TRI.

Core Investment Allocations and Constraints​

The fund adheres strictly to SEBI (MF) Regulations, offering clarity on its investment scope. Allocation guidelines ensure that the portfolio remains diversified while targeting value opportunities in smaller enterprises.

Key allocation details include:

• Equity & Equity related instruments of non-top 100 companies: Minimum 65% to Maximum 100%.
• Equity & Related Instruments of top 100 companies (including REITs): Maximum 35%.
• Debt and Money Market Instruments/InvITs/MF units: Combined allocation up to 35%-20%.
• Overseas Investments: The fund has a permissible limit of US $25 million in overseas securities and US $10 million in Overseas ETFs.

The fund structure maintains conservative operational parameters, with all investments mandated through listed or soon-to-be-listed securities, except for specified unlisted government securities and money market instruments.

Derivatives and Risk Management Framework​

Derivatives are integral to the SIF's active management and risk mitigation processes. The strategy is designed to leverage derivatives not only for hedging but also for generating potential enhanced returns.

Derivative Strategy Breakdown:

• Hedging and Offsetting: Exposure up to 100% of equity assets can be deployed using derivative options, encompassing strategies such as covered call short or put option long against long equity exposure.
• Shorting: Unhedged short derivative positions are capped at 25% of net assets in the IT Sector and Banking Sector during scenario analysis.

The AMC maintains a dedicated Risk Management division to ensure enterprise-level risk mitigation. Strategies include diversification, staggering maturities, and internal controls aimed at managing liquidity risk, interest rate volatility, and credit risks associated with debentures/securitized debt.

Financial Structure and Investor Requirements​

MAGNUM SIF is available through two plans: the Regular Plan (for investors routing through a distributor) and the Direct Plan (for direct investments), both sharing a common portfolio but offering differing expense ratios. The fund carries a 3-month exit load if units are redeemed or switched out within that period, while redemption after three months carries a nil exit load.

Minimum Investment Threshold:
The AMC enforces a 'Minimum Investment Threshold' of ₹10 lakhs per PAN across all SIF strategies. This ensures sustained commitment to the investment objective. The minimum purchase amount for new investors is set at ₹10 lakhs during the NFO period, while continuous basis minimums are ₹1 lakh for existing investors in other Magnum SIF strategies.

NAV and Disclosure:
The first NAV will be disclosed within five business days of allotment. For transparency, the AMC commits to update NAVs daily on its website and AMFI's platform. The fund adheres to stringent reporting standards, promising that portfolio disclosures (including derivative instruments) will be provided monthly as of the last day of every alternate month.

Operational Details and Fund Management​

The investment strategy is managed by Mr. Gaurav Mehta, whose experience spans nearly two decades in Indian financial markets. He holds a CFA Charterholder status, underpinning his expertise in complex financial product management.

NFO Details:

• NFO Price: ₹10/- per unit.
• Subscription/Redemption Frequency: Daily basis.
• Portfolio Turnover: While the AMC has no specific policy on turnover, the nature of the strategy suggests a high expected portfolio turnover due to trading opportunities and market conditions.

The fund's commitment to regulatory compliance is highlighted by the comprehensive disclosures provided in the ISID, confirming adherence to all SEBI (MF) Regulations, 2026 guidelines.