The fund is positioned for conservative investors seeking optimal risk-adjusted returns with lower volatility. It also offers potential tax benefits under the SIF framework, where long-term capital gains exceeding 12 months are taxed at 12.5% plus applicable surcharge and cess, with an exemption of ₹1.25 lakh per financial year.
The New Fund Offer (NFO) will be open for subscription from October 1 to 15, 2025. Investors can subscribe daily, while redemptions will be available twice a week, on Mondays and Thursdays.
The minimum application is ₹10 lakh, with a minimum additional purchase of ₹10,000. Investments can be made through lump sum or systematic investment plans (SIPs).
The fund aims to generate income primarily through derivatives strategies such as covered calls and arbitrage opportunities in equity and debt markets, while also targeting long-term capital appreciation through unhedged equity exposure.
Between 65% and 75% of assets will be invested in equity instruments, with hedged exposure ranging from 0% to 75%, unhedged short derivatives up to 25%, 25%–35% in debt and money market instruments, and up to 10% in REITs and InvITs.
The fund’s benchmark is the NIFTY 50 Hybrid Composite Debt 50:50 Index TRI.
Gaurav Mehta, CFA, Head – SIF, Equity, will manage the Magnum Hybrid Long Short Fund. Mehta joined SBI Funds Management in 2018 and has previously managed equity funds and portfolio management services.
SBI Funds Management, the asset management arm of SBI Mutual Fund, is a joint venture between the State Bank of India and Amundi.
As of August 31, 2025, SBI Mutual Fund manages assets under management (AUM) of around ₹11.9 lakh crore.
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First Published: Sept 24, 2025 4:12 PM IST
