Upcoming NFO: SBI Mutual Fund Files Draft for Magnum Equity Ex-Top 100 Long Short Fund

SBI Mutual Fund has filed the draft Investment Strategy Information Document (ISID) for the Magnum Equity Ex-Top 100 Long Short Fund under its Magnum Specialised Investment Fund platform.  

The proposed scheme is an open-ended investment strategy that will primarily invest in equity and equity-related instruments of companies outside the top 100 by market capitalisation. It may also take limited short positions through derivative instruments. 

Proposed Investment Allocation 

As per the draft document, 65% to 100% of the portfolio can be invested in companies outside the top 100 by market value.  

Exposure to the top 100 companies can be up to 35%, while debt and money market instruments may account for up to 35% of assets.  

The strategy may also invest up to 20% in InvITs and up to 35% in mutual fund units, including Gold and Silver ETFs. 

Benchmark and Investment Objective 

The proposed strategy will use the BSE 500 Total Return Index as its benchmark. According to the filing, the objective is to seek long-term capital appreciation by investing mainly in companies outside the top 100 while using limited derivative exposure for risk management or return generation.  

The document also states that achievement of the investment objective is not guaranteed. 

Investment Conditions 

The minimum investment threshold across Magnum SIF strategies has been set at ₹10 lakh at the PAN level.  

Additional investments can be made from ₹10,000 onwards, while the minimum redemption amount has been fixed at ₹1 lakh.  

The draft proposes an exit load of 1% for redemptions made within 3 months from allotment and nil thereafter.  

Units during the New Fund Offer (NFO) will be priced at ₹10 each, with the offer dates yet to be announced. 

Read More: Upcoming NFO: The Wealth Company Mutual Fund Files Draft Papers for Mid Cap Fund! 

Conclusion 

The draft filing sets out the proposed investment framework, allocation limits, and operational details of the strategy. The investment structure and related terms will be governed by the provisions mentioned in the filed document and applicable regulations. 

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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.