Upcoming NFO: 360 ONE Mutual Fund Files Draft for DynaSIF Equity Long-Short Fund with SEBI

360 ONE Mutual Fund has submitted a draft Investment Strategy Information Document to SEBI for the proposed DynaSIF Equity Long–Short Fund. The fund is proposed under SEBI’s Specialised Investment Fund (SIF) framework. 

The strategy is structured as an open-ended equity fund. It will invest in listed equities and equity-related instruments and will be allowed to take limited short positions through equity derivatives. 

Risk Classification and Benchmark 

The fund has been placed in Risk Band Level 5, which is the highest risk category under SEBI’s framework. The benchmark selected for performance comparison is the BSE 500 Total Return Index. 

The benchmark carries the same risk band level as the investment strategy, according to the draft document. 

Asset Allocation  

Under normal market conditions, the strategy will invest 80% to 100% of its assets in equities and equity-related instruments. Short exposure through unhedged equity derivatives will be permitted up to 25% of net assets. 

Investments in debt and money market instruments may be made up to 20% of assets. The fund may also invest in Infrastructure Investment Trust units within a 20% limit. Overall exposure across permitted instruments will be capped at 100% of net assets. 

Offer Structure and Liquidity 

Units will be offered at a face value of ₹10 during the New Fund Offer (NFO). After the NFO period, subscriptions and redemptions will be allowed on all business days at prices linked to the net asset value. 

Redemption proceeds are required to be paid within 3 working days of receiving a valid request. An exit load of 0.5% will apply on redemptions made within 3 months from the date of allotment. No exit load will apply beyond this period. 

Minimum Investment and Transaction Options 

The minimum investment amount for the strategy has been fixed at ₹10 lakh. Additional purchases can be made from ₹20,000 onwards. Accredited investors are allowed to invest with a lower minimum amount of ₹1 lakh. 

Systematic Investment Plan and Systematic Transfer Plan facilities will be available, subject to regulatory conditions and minimum thresholds. 

Management and Current Status 

The fund will be managed by Harsh Agarwal, who has experience in equity long-short and alternative investment strategies. As the strategy has not yet been launched, no performance data has been disclosed. 

Read More: NFO Alert: Bank of India Mutual Fund Launches Banking and Financial Services Fund! 

Conclusion  

The filing outlines the structure, risk profile and operating framework of the proposed DynaSIF Equity Long-Short Fund. The launch remains subject to regulatory approvals and finalisation of offer timelines. 

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