Upcoming NFO: ICICI Prudential Mutual Fund Filed Draft for iSIF Equity Long-Short Fund

ICICI Prudential Mutual Fund has filed a draft Investment Strategy Information Document for the iSIF Equity Long-Short Fund under the specialised investment fund (SIF) framework.  

Equity Long-Short Structure  

The proposed scheme is structured as an open-ended equity long-short strategy. It will invest in listed equities and related instruments, with limited short exposure through derivatives.  

The document notes that the units offered under the strategy have not been approved or recommended by the regulator, and investors are required to review the document along with related disclosures before investing.  

Allocation and Exposure 

The strategy will invest at least 80% of its assets in equities and equity-related instruments. Up to 20% can be allocated to debt and money market instruments. Exposure to overseas securities is allowed up to 35% of net assets.  

Short exposure through derivatives is capped at 25% of net assets. The fund may also undertake stock lending and use derivatives for hedging or balancing the portfolio. Overall gross exposure across asset classes will not exceed 100% of net assets.  

Investment Conditions 

The minimum investment threshold is set at ₹10 lakh per investor across all strategies within the SIF structure.  

Accredited investors are allowed a lower entry point of ₹10,000. The minimum application amount during the New Fund Offer (NFO) is ₹10 lakh.  

Units will be issued at a face value of ₹10 during the offer period. The strategy will allow daily subscriptions and redemptions after launch. Redemption proceeds are to be processed within 3 business days, with penal interest applicable for delays.  

Read More: Tata Asset Management Launches Titanium Equity Long Short Fund Under SIF Platform! 

Costs and Benchmark 

The draft specifies that no entry load will be charged. An exit load of 1% will apply if units are redeemed within 12 months, and no charge will apply thereafter. Annual recurring expenses are capped at 2.10% of daily net assets.  

Performance will be benchmarked against the Nifty 500 Total Return Index, bringing exposure across market capitalisations. The units are not proposed to be listed on stock exchanges at this stage.  

Conclusion 

The filing sets out the structure, exposure limits and operational terms of the proposed strategy. The fund is yet to be launched and does not have a performance record. 

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.