SBI Mutual Fund Launches New SIF Strategy Targeting Stocks Beyond Top 100

The launch of Magnum Equity Ex-Top 100 Long Short Fund, which is SBI Mutual Fund’s second fund to be launched under the Specialized Investment Fund (SIF) concept, has been declared recently. This is an open-ended fund that will mainly focus on investing in firms that are ranked after the first hundred on the basis of market capitalisation.

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The new fund offer (NFO) will open on August 7 and close on August 20, 2026. According to the fund house, the scheme aims to generate long-term capital appreciation through investments in equity and equity-related instruments, with the BSE 500 Total Return Index (TRI) serving as its benchmark.

Investment Strategy And Asset Allocation

The scheme will allocate between 65% and 100% of its portfolio 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.

Fund House On The New Offering

Debasish Mishra, Managing Director and Chief Executive Officer of SBI Funds Management Ltd., said the launch expands the fund house’s Specialized Investment Fund platform by offering a research-led strategy focused on companies beyond the top 100.

He said the long-short investment structure broadens the product range available to investors while aligning with changing market opportunities and evolving investment preferences.

The scheme will be managed by Gaurav Mehta, CFA, Head – SIF Equity, who also oversees the Magnum Hybrid Long Short Fund, the fund house’s first offering under the SIF framework.

Investment Eligibility And Charges

In line with SEBI’s eligibility norms for Specialized Investment Funds, the minimum investment for new investors has been set at ₹10 lakh. 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.

The fund house said an exit load of 1% will apply if units are redeemed or switched within three months of allotment. No exit load will be charged after the completion of the three-month period.

Taxation And Industry Position

According to the scheme information, long-term capital gains on units held for more than 12 months will be taxed at 12.5%, along with the applicable surcharge and cess. Gains of up to ₹1.25 lakh in a financial year will remain exempt under the prevailing tax provisions.

According to data from the Association of Mutual Funds in India (AMFI), SBI Mutual Fund managed average assets under management of more than ₹12.57 lakh crore during the April-June quarter of 2026, making it the country’s largest asset management company