SBI Mutual Fund launches Magnum Equity Ex-Top 100 Long Short Fund: Here's what investors need to know

SBI Mutual Fund has introduced the Magnum Equity Ex-Top 100 Long Short Fund, its second investment strategy under the Specialised Investment Fund (SIF) framework. The new offering seeks to provide investors with exposure to companies outside India's top 100 listed firms while using a long-short strategy to manage market volatility. The New Fund Offer (NFO) will remain open from August 7 to August 20, 2026.

Here's an explainer on what the new strategy offers.

What is the Magnum Equity Ex-Top 100 Long Short Fund?

The fund is an open-ended Specialised Investment Fund (SIF) strategy that primarily invests in equity and equity-related instruments of companies outside the top 100 by market capitalisation. Unlike traditional equity funds, it also takes limited short positions through derivatives, allowing the fund manager to potentially reduce the impact of market corrections while seeking long-term capital appreciation.

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Why is the fund focusing beyond the top 100 companies?

According to SBI Mutual Fund, the strategy is designed to tap into a broader investment universe that includes mid- and small-cap companies and businesses operating in emerging sectors. These companies often have greater growth potential than established large-cap firms, although they can also experience higher price volatility. The long-short approach aims to balance this opportunity with risk management.

How will the fund invest?

The investment strategy will allocate 65% to 100% of its assets to companies outside the top 100 by market capitalisation, including REITs. It may also invest up to 35% in top-100 companies, debt and money market instruments, overseas securities and units of mutual funds, including Gold and Silver ETFs, within regulatory limits. Exposure to InvITs can go up to 20%, while overseas investments may account for up to 35% of the portfolio.

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Who can invest?

The minimum investment amount for new investors has been fixed at ₹10 lakh, reflecting the eligibility norms applicable to Specialized Investment Funds. Existing Magnum SIF investors can invest ₹1 lakh per application, provided their aggregate investment across Magnum SIF strategies remains at least ₹10 lakh.

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What are the tax implications?

The press release states that long-term capital gains on investments held for more than 12 months will be taxed at 12.5%, with gains of up to ₹1.25 lakh in a financial year remaining exempt, subject to surcharge and cess.

Who will manage the strategy?

The investment strategy will be managed by Gaurav Mehta, CFA, Head – SIF Equity, who also manages SBI Mutual Fund's Magnum Hybrid Long Short Fund. The benchmark for the strategy is the BSE 500 Total Return Index (TRI).

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What does SBI Mutual Fund say?

Debasish Mishra, Managing Director and CEO of SBI Funds Management Ltd., said the launch expands the fund house's Specialized Investment Fund platform and reflects its focus on research-driven investment solutions. He added that the combination of investing beyond the top 100 companies and a systematic long-short approach is intended to address the evolving needs of investors seeking differentiated equity strategies.

The fund house has also cautioned that investments in Specialized Investment Funds involve relatively higher risks, including market volatility, liquidity risk and the potential loss of capital, and advised investors to read the investment documents carefully before investing.

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