Now Reading: SBI Mutual Fund opens new equity fund for investors
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SBI Mutual Fund opens new equity fund for investors
SBI Mutual Fund has opened its new Magnum Equity Ex-Top 100 Long Short Fund for subscription from August 7 to August 20, 2026. The fund will invest in companies outside India's top…
The Story in Brief
SBI Mutual Fund has opened its new Magnum Equity Ex-Top 100 Long Short Fund for subscription from August 7 to August 20, 2026. The fund will invest in companies outside India's top 100 firms and use derivatives for limited short positions to manage risk and boost returns. Its benchmark is the BSE 500 TRI.
The minimum investment for new investors is Rs 10 lakh, in line with SEBI's SIF eligibility rules. Gaurav Mehta, a CFA and head of SIF Equity, will manage the fund. SBI is India's largest asset manager with an average AUM of over Rs 12.57 lakh crore in the April-June 2026 quarter.
The Indian Opinion
The Rs 10 lakh minimum investment makes this SIF a product for HNIs, not the average mutual fund buyer. While the fund touts a 'long-short' strategy for managing risk, retail investors should question whether such complex derivatives-based approaches truly deliver better risk-adjusted returns over a full market cycle. The real test will be whether this fund outperforms a simpler flexi-cap fund after costs and taxes over three to five years.
Source: bazaar.businesstoday.in
This story was synthesised by AI from the source linked above.
