JioBlackRock files for hybrid long-short fund under Prism SIF

JioBlackRock Mutual Fund has filed draft documents with the Securities and Exchange Board of India (Sebi) to launch a hybrid long-short fund under its Prism Specialised Investment Fund (SIF) platform. The proposed Prism Hybrid Long-Short Fund aims to offer a diversified investment approach combining equity, debt, and derivative strategies.

The fund will follow an interval investment structure and seek to generate long-term capital appreciation along with regular income. It will invest across a mix of equity and equity-related instruments, debt and money market securities, and derivative-based strategies, including limited short exposure.

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According to the draft filing, the fund will allocate 35% to 75% of its portfolio to equities, while 25% to 65% will be invested in debt and money market instruments. In addition, up to 25% exposure may be taken through unhedged derivative positions, and up to 20% can be allocated to InvITs. The strategy also includes merger arbitrage opportunities and options-based approaches such as collar strategies to enhance returns and manage downside risks.

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The fund will be benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index (TRI). It will be managed by a team including Arun Ramachandran, Tanvi Kacheria, Siddharth Deb, and Virendra Kumar.

In terms of structure, subscriptions will be allowed daily at the applicable net asset value (NAV), while redemptions will be permitted twice a week—on Mondays and Wednesdays—or at a lower frequency as determined by the asset management company.

The minimum investment threshold under the SIF framework is set at ₹10 lakh for initial investments, reflecting the product’s positioning towards high-value investors. Subsequent investments will require a minimum of ₹10,000.

The fund is designed for investors seeking a balance between growth and income, with the flexibility to navigate different market cycles. Its strategy includes deploying capital across multiple asset classes and using derivatives selectively to hedge risks and capture opportunities.

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JioBlackRock stated that its Prism SIF platform follows a “risk-first, data-driven” investment philosophy. The approach aims to adapt dynamically to changing market conditions and deliver relatively stable outcomes compared to traditional long-only strategies.

The fund carries a moderate risk profile, with the principal investment exposed to market fluctuations. By combining long and short strategies with diversified asset allocation, the fund seeks to provide investors with a more balanced return profile across varying market environments.

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