Magnum Hybrid Long Short Fund: A safer bet than debt?

In a market where investors are often torn between stability and growth, SBI Mutual Fund has introduced the Magnum Hybrid Long Short Fund (Magnum SIF) – its first Specialised Investment Fund (SIF). Positioned between arbitrage and hybrid equity funds, Magnum SIF seeks to balance risk and return in a way that appeals to conservative investors who still want to capture equity-linked growth.

The fund’s structure is designed with clear intent:

• 65-75 per cent equity allocation with derivatives to cushion downside volatility.
• 25-35 per cent allocation to debt for stability and predictable income.
• Up to 10 per cent in REITs and InvITs to add steady yield potential.

This unique blend aims to deliver low-volatility, risk-adjusted returns while also offering the benefit of equity taxation, a feature that significantly boosts post-tax outcomes for investors.

For those concerned about liquidity, Magnum SIF has a simple exit load – 0.5 per cent if redeemed within 15 days, 0.25 per cent between 16-30 days, and nil thereafter. Alongside, SBI MF has built strong risk controls into the fund’s design, using derivatives not only for hedging but also to tap event-driven opportunities in the market.

The big takeaway? This NFO is not about chasing high-risk returns. It’s about creating a stable, inflation-beating investment option for those who don’t want to compromise on safety but still seek to grow wealth efficiently.

If you’re considering new mutual fund offerings in 2025, this interview with experts provides the complete breakdown of why SBI MF believes Magnum SIF belongs in your portfolio.

👉 To find out if the fund suits your portfolio, check out the full interview