Upcoming NFO: MSIF Files Draft for MSIF Equity Long-Short Fund

MSIF has filed an Investment Strategy Information Document (ISID) for the MSIF Equity Long-Short Fund, a new open-ended equity-oriented investment strategy.  

The document, dated August 3, 2026, states that the strategy will invest predominantly in listed equity and equity-related instruments, while also taking limited short exposure through derivative instruments.  

Investment Approach 

The strategy aims to generate long-term capital appreciation through a combination of long and short equity exposures across market cycles.  

The investment approach will use bottom-up stock selection and top-down thematic views, with factors including earnings growth prospects, capital allocation, return ratios, quantitative analysis and valuations considered alongside the macroeconomic outlook.  

Short Positions and Asset Allocation 

Under the proposed allocation, 80-100% of assets may be invested in equity and equity-related instruments, while 0-20% may be allocated to debt and money market instruments.  

Units of InvITs can account for up to 10% of assets. The strategy can have unhedged short exposure of up to 25% of net assets through derivatives. Overseas securities can account for up to 20% of net assets.  

The strategy may use stock futures, index futures, sector index futures and options for selective short exposure. It can also use derivatives for hedging, portfolio rebalancing, risk management and other permitted purposes.  

The document notes that derivatives are leveraged instruments and can result in disproportionate gains or losses.  

Fund Managers and Benchmark 

The fund will be managed by Aalap Shah and Abhishek Jaiswal. The proposed benchmark is the Nifty 500 TRI, which the document says represents the Indian equity market across market capitalisations.  

NFO and Investor Details 

The New Fund Offer (NFO) price is set at ₹10 per unit, while the minimum investment is ₹10 lakh, or ₹1 lakh for an Accredited Investor. An exit load of 0.5% applies if units are redeemed or switched out within three months of allotment.  

Read More: Upcoming NFO: The Wealth Company Mutual Fund Files for Wealth Company Life Cycle Fund! 

Conclusion 

The filing outlines a new long-short equity strategy with selective derivative-based short exposure. As it is a new strategy, it has no performance track record, and no analysts’ view is provided in the document. 

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.