Upcoming NFO: 360 ONE Mutual Fund Files Draft for DynaSIF Ex-Top 100 Long-Short Fund

360 ONE Mutual Fund has filed draft papers for the launch of the DynaSIF Equity Ex-Top 100 Long-Short Fund under its specialised investment fund platform.  

The proposed scheme is structured as an open-ended investment strategy investing in equity and equity-related instruments, including limited short exposure through derivatives.  

Portfolio Allocation Structure 

The draft document stated that the strategy will invest between 65% and 100% of its assets in companies outside the top 100 listed firms by market capitalisation. 

Exposure to top-100 companies has been capped at 35%, while debt and money market instruments can account for up to 25% of the portfolio.  

The filing also allows unhedged short derivative exposure of up to 25% in stocks outside the top-100 segment. Investments in InvITs can go up to 20% of total assets. 

 The scheme may additionally invest up to 20% of net assets in foreign securities and overseas exchange-traded funds, subject to regulatory limits.  

Subscription And Risk Details 

The minimum investment amount during the New Fund Offer (NFO) and on a continuous basis has been fixed at ₹10 lakh.  

For accredited investors, the minimum investment threshold has been set at ₹1 lakh. SIP contributions will start at ₹20,000 per month for a minimum period of 6 months.  

The strategy has been categorised under high-risk investment category. The filing also stated that an exit load of 0.5% will apply on redemptions made within 6 months from the date of allotment.  

The benchmark for the strategy will be the BSE 500 Total Return Index. 

Investment Approach 

According to the filing, the investment objective is to generate long-term capital appreciation through structural, cyclical and tactical opportunities in mid-cap and small-cap equities. The strategy will also use hedging and short-selling positions through derivatives.  

The document stated that the fund may use covered calls, arbitrage trades, index trading and volatility-based derivative strategies.  

It added that derivative instruments are leveraged products and can lead to disproportionate gains as well as losses compared to traditional investments.  

Read More: SBI Mutual Fund’s ₹1,435 Crore Stake Deal Pushes Adani Enterprises to 52-Week High with Nearly 9% Gain! 

Conclusion 

The proposed scheme expands DynaSIF’s specialised investment offerings with a strategy centred on mid-cap and small-cap equities alongside long-short derivative exposure. 

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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.