Upcoming NFO: Mirae Asset Mutual Fund Files Draft for Platinum Hybrid Long-Short Fund Via SIF

Mirae Asset Investment Managers (India) has filed a draft Investment Strategy Information Document (ISID) with the SEBI for its Platinum Hybrid Long-Short Fund. The proposed offering falls under the specialised investment fund (SIF) framework and is structured as an interval investment strategy.  

The document states that the units have not been approved or endorsed by SEBI, and the filing is meant to provide key information for prospective investors before launch.  

Investment Objective and Structure 

The fund seeks to generate regular income through arbitrage strategies, derivative positions, and investments in debt and money market instruments. It also aims to achieve capital appreciation through selective exposure to unhedged equities.  

It is designed as an interval strategy, allowing subscriptions on all business days, while redemptions are permitted twice a week. Units are proposed to be listed on stock exchanges to provide additional liquidity.  

Asset Allocation Framework 

As per the draft, equity and equity-related instruments are expected to account for 65-75% of the portfolio. Debt and money market instruments may form 25-35%, while unhedged derivative exposure can go up to 25%.  

The strategy may also invest up to 20% in InvITs and securitised debt, within regulatory limits. Overall exposure across asset classes will remain capped at 100% of net assets.  

Investment Approach and Operations 

The approach includes arbitrage trades, covered call strategies, and derivative spreads aimed at managing downside risk. The fund may also participate in event-based opportunities such as IPOs, buybacks, and merger situations.  

Net asset value (NAV) will be disclosed on a daily basis, with the first NAV published within 5 business days of allotment. Redemption proceeds are to be processed within 3 working days.  

Minimum Investment and Costs 

The minimum investment amount is set at ₹10 lakh, with a lower threshold of ₹5 lakh for accredited investors. Additional purchases can be made with a minimum of ₹10,000.  

An exit load of 1% applies for redemptions within 90 days. The total expense ratio is estimated at up to 2.25% of daily net assets.  

Benchmark and Risk Factors 

The fund will track the NIFTY 50 Hybrid Composite Debt 50:50 Index as its benchmark. It is categorised as a higher-risk strategy due to the use of derivatives and exposure to market-linked instruments.  

Read More: HSBC Gold ETF Fund of Fund Reopens on NSE MF Platform: Key Details for Investors! 

Conclusion 

The filing outlines the structure, allocation limits and operating framework of the proposed strategy. The scheme is currently at the draft stage and subject to regulatory review. 

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.