SBI Launches Magnum Equity Ex-Top 100 Long Short Fund to Capture Midcap Opportunities

SBI Launches Magnum Equity Ex-Top 100 Long Short Fund to Capture Midcap Opportunities​

SBI Mutual Fund has significantly expanded its specialized investment offerings with the launch of the Magnum Equity Ex-Top 100 Long Short Fund. This new Specialized Investment Fund (SIF) is designed to target high-growth opportunities by focusing heavily on equities and instruments outside India's top 100 largest companies.

The fund aims for long-term capital appreciation, leveraging a disciplined systematic long-short construct. By incorporating limited short positions through derivatives, the strategy seeks to enhance returns while effectively managing market volatility. The benchmark set for this particular SIF is the BSE 500 TRI.

Key Details of Magnum Equity Ex-Top 100 Long Short Fund​

The fund’s Net Asset Value (NAV) strategy allocates a minimum of 65% and up to 100% of assets into equities and equity related instruments of companies ranked outside the top 100 by market capitalization. This concentration on mid and small caps allows the fund to tap into niche growth potential missed by broader indices.

The investment mandate is highly diversified, offering several permissible allocations. Up to 35% of assets can be allocated to top-100 company equities, while up to 35% can go into debt and money market instruments. Furthermore, investors have flexibility regarding other asset classes.

Investment Scope and Asset Allocation Rules​

The fund structure allows for significant exposure across various segments including InvITs, mutual fund units, and global markets. Up to 20% of the portfolio may be allocated to InvITs (Infrastructure Investment Trusts). Additionally, up to 35% can be invested in mutual fund units, encompassing gold and silver ETFs.

A substantial portion, up to 35% of net assets, is reserved for overseas investments. These global exposure options include ADRs, GDRs, foreign equities, overseas ETFs, and international debt securities, subject to prevailing regulatory limits.

Investment Criteria and Regulatory Compliance​

The fund’s subscription window has been clearly defined. The Magnum Equity Ex-Top 100 Long Short Fund opening for subscription will commence on August 7 and close on August 20, 2026. This timing gives investors a specific period to participate in this specialized strategy.

Eligibility criteria are strict due to the SIF classification. New investors must meet a minimum investment of ₹10 lakh. Existing Magnum SIF investors can invest as low as ₹1 lakh per application, provided their total aggregate investment across all Magnum SIF strategies meets or exceeds ₹10 lakh at the PAN level.

Expert Viewpoint on Portfolio Diversification​

Debasish Mishra, MD and CEO of SBI Funds Management Ltd., highlighted that this launch represents a meaningful expansion of their Specialized Investment Fund platform. He noted that it reflects a commitment to disciplined, research-driven solutions capable of keeping pace with India's constantly evolving market opportunities.

Mishra added that the systematic long short construct, combined with the focus beyond the top 100 companies, broadens the product suite. This effort aims to deliver thoughtful, well-structured strategies that generate long term value while aligning with shifting investment dynamics.

Tax Structure and Fund Management Details​

The management of this fund will be overseen by Gaurav Mehta, CFA, who is the Head of SIF Equity. Mr. Mehta also manages the Magnum Hybrid Long Short Fund, SBI Mutual Fund’s inaugural SIF offering.

From a tax perspective, long term capital gains realized on investments held for over 12 months are subject to 12.5%, plus applicable surcharge and cess. Crucially, current tax rules exempt gains up to ₹1.25 lakh within a single financial year. An exit load of 1% applies if units are redeemed or switched out within three months of allotment, with no exit load being charged thereafter.