ICICI Prudential Files Draft Documents for 2 Specialised Investment Funds (SIFs)

ICICI Prudential Mutual Fund has filed draft documents with the Securities and Exchange Board of India (SEBI) for 2 specialised investment funds (SIFs). The proposed schemes are the ISIF Equity Ex-Top 100 Long-Short Fund and iSIF Hybrid Long-Short Fund.

Both funds aim to offer investors differentiated strategies combining long and short positions through derivative instruments. The filings outline investment objectives, allocation patterns, and risk profiles for each fund.

Overview Of Proposed Funds

The 2 funds are designed to cater to investors seeking advanced strategies beyond traditional equity and debt allocations. iSIF Equity Ex-Top 100 Long-Short Fund will focus on companies outside the top 100 by market capitalisation, while iSIF Hybrid Long-Short Fund will combine equity and debt exposures.

Both schemes incorporate derivative strategies to manage risk and optimise returns. The filings indicate that these funds will follow a principle-based approach with active portfolio management.

iSIF Equity Ex-Top 100 Long-Short Fund

The iSIF Equity Ex-Top 100 Long-Short Fund will be an open-ended scheme investing primarily in equity and equity-related instruments of companies outside the top 100. The fund will also take limited short exposure through unhedged derivative positions in equity and equity-related instruments of Ex-Top 100 stocks, capped at 25%.

The investment objective is to generate long-term capital appreciation by focusing on businesses with strong fundamentals and growth potential. Subscriptions and redemptions will be available on a daily basis, and the minimum application amount is ₹10 lakh.

iSIF Hybrid Long-Short Fund

The iSIF Hybrid Long-Short Fund will follow an interval structure, investing in equity and debt securities along with limited short exposure through derivatives. The fund aims to achieve long-term capital appreciation while generating regular income through debt instruments.

It will also have the flexibility to invest in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The subscription frequency will be daily, while redemption will occur twice a week, on Mondays and Wednesdays.

Risk Profile and Investment Approach

Both funds fall under higher risk categories due to their use of derivatives and exposure to market volatility. The investment strategies will follow a bottom-up and top-down approach, focusing on fundamentals such as industry structure, management quality, and earnings drivers.

Defensive and opportunistic strategies may be adopted depending on market conditions. Investors should note that these funds are intended for those with a high-risk appetite and a long-term investment horizon.

Read More: ICICI Prudential AMC IPO Draws ₹3 Lakh Crore in Bids, Becomes India’s Fourth Most-Subscribed Issue.

Conclusion

ICICI Prudential’s proposed specialised investment funds reflect growing investor interest in long-short strategies and hybrid allocation models. By combining equity, debt, and derivative exposures, these schemes aim to deliver diversified returns under varying market conditions.

The filings with SEBI mark an important step towards expanding the asset manager’s product portfolio in the alternative investment space. Final approval and launch timelines will depend on regulatory clearance and market readiness.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.