QSIF Hybrid Long-Short Fund vs SBI Magnum Hybrid Long-Short Fund: Comparing new hybrid long-short NFOs

The race to dominate India’s emerging Specialised Investment Fund (SIF) segment has intensified, with Quant Mutual Fund and SBI Mutual Fund launching their own hybrid long-short strategies. While both funds aim to balance equity and debt exposure with the tactical use of derivatives, their structures, features, and investor positioning differ significantly.

Quant’s QSIF Hybrid Long-Short Fund

Quant Mutual Fund has rolled out the QSIF Hybrid Long-Short Fund, its second offering under the SIF category. The fund follows an interval structure, with daily subscriptions but restricted redemptions only on Tuesdays and Wednesdays.

The scheme seeks to blend capital appreciation and income generation through a diversified allocation:

25–75% in equity and equity-related instruments

25–75% in debt and money market instruments

0–20% in REITs and InvITs

What sets it apart is the ability to take short derivative positions up to 25%, helping to hedge volatility and capture tactical opportunities. Managed by a seasoned team including Sandeep Tandon, Lokesh Garg, Ankit Pande, Sameer Kate, and Sanjeev Sharma, the fund is benchmarked to the Nifty 50 Hybrid Composite Debt 50:50 Index.

The minimum application amount is ₹10 lakh, with SIPs starting at ₹10,000. Exit load is set at 1% if units are redeemed within 15 days of allotment.

According to Quant, the fund emphasizes active risk management and periodic rebalancing, making it suitable for high-net-worth individuals (HNIs) seeking tactical plays across market cycles.

SBI Magnum Hybrid Long-Short Fund

SBI Mutual Fund has entered the SIF arena with the Magnum Hybrid Long-Short Fund, its first offering under the SEBI-approved framework. Unlike Quant’s interval model, SBI’s structure provides greater liquidity with redemptions twice a week — on Mondays and Thursdays — making it more flexible for investors.

The fund’s portfolio mix tilts more heavily toward equities, allocating 65–75% to equity instruments. However, most of this is hedged using derivatives, keeping net equity exposure at a conservative 0–10%. Short positions are capped at 25%, while 25–35% is allocated to debt, and up to 10% may go into REITs/InvITs.

The strategy leverages covered calls and arbitrage to generate income while reducing downside risks. Positioned as an “FD-plus” product, the fund targets conservative investors such as retirees or first-time equity participants.

The NFO runs from October 1 to 15, 2025, with a minimum investment of ₹10 lakh and top-ups in multiples of ₹10,000. The scheme is managed by Gaurav Mehta, CFA, Head of SIF Equity at SBI Mutual Fund.

Taxation edge

Both funds benefit from the SIF tax framework, where long-term capital gains (on units held beyond 12 months) are taxed at 12.5% plus surcharge and cess, with an exemption limit of ₹1.25 lakh annually. This is more favorable compared to traditional hybrid funds taxed as per equity or debt rules.

SBI has additionally highlighted its focus on cost efficiency, aiming for an expense ratio pegged at about 10% of expected yields, leaving more returns in investors’ hands.

Key comparisons

Structure: Quant offers an interval fund with stricter redemption days, while SBI allows easier twice-weekly exits.

Equity Allocation: Quant maintains a flexible 25–75% equity range; SBI prefers a higher 65–75% allocation but hedges most exposure.

Investor Profile: Quant appeals to HNIs seeking tactical flexibility; SBI positions itself as a safer, FD-plus option for conservative investors.

Management Style: Quant emphasizes dynamic allocation across equity, debt, and REITs; SBI leans on derivative strategies to reduce volatility.

Redemption Frequency: Quant restricts to midweek (Tues/Wed), SBI offers Mondays and Thursdays.

Tax Treatment: Both benefit from the favorable SIF regime, but SBI stresses efficiency and affordability.

QSIF Equity Long-Short Fund

Quant Mutual Fund has also launched India’s first SIF, the QSIF Equity Long-Short Fund, an open-ended equity scheme that invests in listed equities and equity-related instruments while employing limited short exposure through derivatives. The NFO is open until October 1, and the fund will reopen for continuous subscriptions within five business days post-allotment.

The fund aims to generate long-term capital appreciation by blending long-term equity investments with tactical short positions to capture upside potential while managing downside risk. It employs a flexi-cap, market-cap-agnostic strategy with allocation across cash equities, derivative-based long and short positions, hedging instruments, and margins, all within SEBI’s regulatory limits. Benchmarking will be against the Nifty 500 Total Return Index.

The scheme is managed by Sandeep Tandon, Lokesh Garg, Sameer Kate, Ankit Pande, and Sanjeev Sharma, offering expertise across equity and derivative strategies. Two plans are available—direct and regular—with growth and IDCW options. Exit load is 1% if redeemed or switched within 15 days. Minimum application is Rs 10 lakh, with SIPs starting at Rs 10,000, making it suitable for investors seeking consistent returns with prudent risk management in diverse market conditions.

Note for investors

The QSIF Hybrid Long-Short Fund is structured for investors comfortable with interval liquidity and tactical plays, making it attractive to market-savvy participants. The SBI Magnum Hybrid Long-Short Fund, by contrast, emphasizes capital preservation, liquidity, and cost efficiency — a better fit for conservative savers and retirees.

As India’s SIF market matures, these two contrasting approaches highlight the growing range of choices for investors seeking hybrid long-short strategies with tax-efficient outcomes.