SBI Mutual Fund NFO: Magnum Ex-Top 100 Long Short Fund Expands The SIF Strategy
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Key Takeaways
- SBI launches Magnum Equity Ex-Top 100 Long Short Fund under the Specialized Investment Fund framework.
- The NFO runs from August 7 to August 20, 2026.
- Allocation ranges: 65-100% in equities outside the top 100, up to 35% in top-100 stocks, up to 35% debt/money market, up to 20% InvITs, up to 35% mutual fund units (including gold and silver ETFs), and up to 35% overseas exposure.
- New investors must invest at least ₹10 lakh; existing Magnum SIF investors may invest ₹1 lakh per application, provided total Magnum SIF investments reach ₹10 lakh across the PAN.
Investors are watching a pivotal shift in Indian mutual funds as SBI Mutual Fund launches Magnum Equity Ex-Top 100 Long Short Fund, the second strategy under SEBI's Specialized Investment Fund (SIF) framework. The SBI Mutual Fund NFO opens on August 7 and closes on August 20, 2026, offering a long-short approach aimed at companies outside the top 100 by market capitalisation, with the BSE 500 Total Return Index (TRI) as its benchmark. This development marks a deliberate expansion of SBI's SIF platform and introduces a research-led long-short approach focused on companies beyond the top 100 by market capitalisation.
The Magnum Equity Ex-Top 100 Long Short Fund is an open-ended scheme that will primarily target mid-to-small cap companies outside the top 100, while still allowing allocation to select top-100 names to manage liquidity and risk. The fund's long-short construction is designed to capture upside in growth opportunities while hedging some downside risk through short exposure. By design, the strategy acknowledges the evolving landscape in Indian equities where opportunities exist beyond the largest names, enabling a more balanced risk-return profile for patient investors. This fund is a meaningful extension of SBI’s Magnum family, aligning with a broader concept that SBI Mutual Fund has pursued under the Magnum umbrella, including products like SBI Magnum Midcap Mutual Fund which serves as a cornerstone for growth-oriented allocations in the mid-cap space.
This fund represents more than a product launch; it is a deliberate extension of SBI's Specialized Investment Fund platform, which already included the Magnum Hybrid Long Short Fund as its first offering. Debasish Mishra, Managing Director and Chief Executive Officer of SBI Funds Management Ltd., described the move as expanding the platform with a research-led approach that focuses on companies beyond the top 100. The scheme will be managed by Gaurav Mehta, CFA, Head – SIF Equity, who also oversees the Magnum Hybrid Long Short Fund. The emphasis on a long-short framework broadens SBI's product range and aligns with changing market opportunities and evolving investor preferences, reinforcing SBI Mutual Fund’s leadership in offering innovative strategies through the Magnum SIF ecosystem.
In line with SEBI norms for Specialized Investment Funds, the Magnum Equity Ex-Top 100 Long Short Fund implements a diverse asset allocation framework. The portfolio will allocate 65% to 100% of its assets to equities and equity-related instruments of companies outside India’s top 100 by market capitalisation. It may invest up to 35% in stocks within the top 100, while debt and money market instruments can account for up to 35% of the portfolio. The investment mandate also permits allocations of up to 20% in Infrastructure Investment Trusts (InvITs) and up to 35% in mutual fund units, including gold and silver exchange-traded funds. Overseas investments, including ADRs, GDRs, foreign equities, overseas ETFs and debt securities, may constitute up to 35% of net assets, subject to regulatory limits. In practice, this means a blended mix that targets niche growth outside the core top-100 names while preserving liquidity and some hedging through the top-100 exposures and debt instruments.
The fund's exposure to overseas assets adds a layer of diversification that can help smooth returns across cycles, but it also introduces currency and regulatory risks that investors should consider in the context of their overall portfolios. Still, the allocation framework is designed to be robust and flexible, enabling the fund to capture opportunities across a broad spectrum of markets and instruments while staying within the SEBI framework for SIF funds. For investors who follow the broader Magnum family closely, this fund complements the Magnum Midcap Mutual Fund by offering a different avenue to access growth in a diversified, research-driven context. The SBI mutual fund group has continued to strengthen its scale and reach, as reflected by AMFI data showing average assets under management of more than ₹12.57 lakh crore during the April–June 2026 quarter, reinforcing SBI Mutual Fund’s position as a market leader in India.
Portfolio oversight and benchmark reliability – The Magnum Equity Ex-Top 100 Long Short Fund leverages the expertise of a dedicated SIF Equity team. Gaurav Mehta, CFA, heads this group and also oversees the Magnum Hybrid Long Short Fund, the first SIF offering from SBI Funds Management Ltd. Debasish Mishra, MD and CEO, reiterates that expanding the SIF platform with a research-led strategy focused on companies beyond the top 100 aligns with changing market opportunities and evolving investor preferences. This structure is intended to deliver a complementary exposure within the broader Magnum ecosystem, including the SBI Magnum Midcap Mutual Fund, which serves as a reference point for growth potential in the mid-cap segment. The BSE 500 TRI remains the benchmark, offering a broad, market-wide yardstick that captures performance across large, mid, and small-cap segments, aligning with the fund’s intent to harvest opportunities outside the largest 100 names.
For investors seeking clarity on how this fund could fit into a broader portfolio, the Magnum Equity Ex-Top 100 Long Short Fund offers a unique blend of long exposure to attractively valued ex-top-100 names and shorter bets on overvalued opportunities within a single, research-driven framework. The fund’s structure is designed for investors with a longer time horizon and readiness to accommodate a level of complexity inherent in long-short strategies. While the allocation to InvITs, mutual fund units, and overseas assets broadens diversification, it also requires careful consideration of currency risk, liquidity, and regulatory changes that can influence performance over time.
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What Is The Magnum Equity Ex-Top 100 Long Short Fund?
The Magnum Equity Ex-Top 100 Long Short Fund is SBI Mutual Fund's second strategy under SEBI's Specialized Investment Fund (SIF) framework. It is an open-ended fund that focuses on investing in companies ranked after the first hundred on the basis of market capitalisation. The BSE 500 TRI serves as its benchmark. This fund targets a universe outside the top 100, with the flexibility to invest up to 35% in top-100 names to manage liquidity and risk. The long-short approach is designed to generate long-term capital appreciation through equity and equity-related instruments, with a strategy informed by a research-intensive framework that looks beyond the largest names.
How The SBI Mutual Fund SIF Framework Shapes The Magnum Ex-Top 100 Long Short Fund
SEBI's Specialized Investment Fund (SIF) framework provides a research-led, strategy-driven platform for SBI to offer targeted long-short strategies. The Magnum Equity Ex-Top 100 Long Short Fund is the second offering in SBI Funds Management Ltd.’s SIF lineup, following the Magnum Hybrid Long Short Fund. Debasish Mishra, the Managing Director and CEO of SBI Funds Management Ltd., notes that the launch expands the fund house’s specialized platform by focusing on companies beyond the top 100. Gaurav Mehta, CFA, Head – SIF Equity, will oversee the fund as part of his broader responsibilities, including the Magnum Hybrid Long Short Fund. Overall, the SIF platform aims to capture evolving market opportunities while aligning with shifting investor preferences for research-led, differentiated strategies that go beyond traditional cap-weighted exposure.
Investment Allocation And Asset Class Mix
In keeping with SEBI norms, the Magnum Equity Ex-Top 100 Long Short Fund will allocate 65% to 100% of its portfolio to equities and equity-related instruments of companies outside the top 100 by market capitalisation. It may invest up to 35% in stocks within the top 100, while debt and money market instruments can account for up to 35% of the portfolio. The investment mandate also permits allocations of up to 20% in InvITs and up to 35% in mutual fund units, including gold and silver ETFs. Overseas investments, including ADRs, GDRs, foreign equities, overseas ETFs and debt securities, may constitute up to 35% of net assets, subject to regulatory limits. This mix provides a balance between growth potential from ex-top-100 names and the liquidity/defensive potential of top-100 exposure, debt instruments, and international diversification.
NFO Timeline, Minimum Investment, Fees And Taxation
The NFO will open on August 7 and close on August 20, 2026. The minimum investment for new investors is ₹10 lakh, while existing Magnum SIF investors can invest at least ₹1 lakh per application, provided their cumulative investment across Magnum SIF strategies remains at or above ₹10 lakh at the PAN level. An exit load of 1% applies if units are redeemed or switched within three months of allotment; no exit load applies after the three-month period. Tax provisions specify long-term capital gains on units held for more than 12 months at 12.5%, plus applicable surcharge and cess, with gains up to ₹1.25 lakh exempt per financial year. The fund aligns with standard AMFI tax treatment for equity-oriented mutual funds, but investors should consult their tax advisor for personal circumstances.
Management Team, Benchmark And Competitive Position
The Magnum Equity Ex-Top 100 Long Short Fund will be managed by Gaurav Mehta, CFA, Head – SIF Equity, who also oversees the Magnum Hybrid Long Short Fund–the first offering under SBI’s SIF framework. The benchmark remains the BSE 500 Total Return Index, which provides a broad-based performance yardstick that captures the performance of large-, mid-, and small-cap segments. Debasish Mishra, MD and CEO of SBI Funds Management Ltd., emphasizes that the Magnum Equity Ex-Top 100 Long Short Fund expands the SIF platform with a research-driven focus on companies beyond the top 100, complementing the broader Magnum family and its long history of delivering growth through SBI Magnum Midcap Mutual Fund and related products. This multi-fund ecosystem of the Magnum family underscores SBI Mutual Fund’s leadership in delivering diversified strategies that address varying investor needs in India’s rapidly evolving equity markets.
Navigating Taxation And Exit Loads For This Fund
The tax treatment of the Magnum Equity Ex-Top 100 Long Short Fund follows standard equity-oriented mutual fund norms. Long-term capital gains on units held for more than 12 months are taxed at 12.5% with applicable surcharge and cess; gains up to ₹1.25 lakh in a financial year are exempt. An exit load of 1% applies if units are redeemed or switched within three months of allotment; there is no exit load after the three-month period. Investors should consider these implications when evaluating potential after-tax returns and should align them with their overall tax planning and financial goals.
Frequently Asked Questions
What is the Magnum Equity Ex-Top 100 Long Short Fund?
SBI Mutual Fund's second strategy under SEBI's Specialized Investment Fund framework; an open-ended fund targeting companies outside the top 100 by market capitalisation with a long-short approach; benchmark is the BSE 500 TRI.
When is the NFO opening and closing for this fund?
The NFO opens on August 7 and closes on August 20, 2026.
What are the minimum investment requirements for new and existing investors?
New investors must invest at least ₹10 lakh; existing Magnum SIF investors may invest at least ₹1 lakh per application, provided their cumulative investment across Magnum SIF strategies remains at or above ₹10 lakh at the PAN level.
What is the fund's allocation framework?
65% to 100% in equities outside the top 100; up to 35% in top-100 stocks; up to 35% in debt/money market; up to 20% in InvITs; up to 35% in mutual fund units (including gold and silver ETFs); and up to 35% in overseas investments subject to regulatory limits.
What are the exit loads and tax implications?
Exit load of 1% if redeemed within three months; no exit load thereafter. LTCG on units held over 12 months taxed at 12.5% plus surcharge and cess; gains up to ₹1.25 lakh exempt per financial year.
Who manages the Magnum Ex-Top 100 Long Short Fund and what is the benchmark?
Managed by Gaurav Mehta, CFA, Head – SIF Equity; benchmark is the BSE 500 Total Return Index; the fund is SBI's second SIF offering after Magnum Hybrid Long Short Fund.
Conclusion
For the retail investor, the Magnum Equity Ex-Top 100 Long Short Fund represents SBI's structured response to a market where opportunities exist beyond the top 100 names. The combination of long-short positioning, diversification through InvITs, mutual fund units, and overseas exposure, and a benchmark anchored to the BSE 500 TRI suggests a strategy designed for parts of the cycle where the market's breadth expands. The fund's open-ended structure and defined minimums for new and existing investors improve accessibility for a broad audience, while the exit load and tax treatment remain aligned with typical equity-oriented mutual funds. Investors should monitor the SIF platform's evolution and weigh the balance of growth potential against currency and regulatory risks as they consider how this fund could fit into a longer-term plan.
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