India’s mutual fund landscape is evolving — and Specialized Investment Funds (SIFs) are at the cutting edge of that change. ICICI Prudential Mutual Fund’s new iSIF series brings hedge fund-style flexibility to sophisticated investors through long-short strategies, derivatives, and multi-asset diversification.
Two flagship strategies — the iSIF Hybrid Long-Short Fund and the iSIF Equity Ex-Top 100 Long-Short Fund — are designed for high-net-worth investors (minimum ₹10 lakh investment) who want to navigate both bull and bear markets intelligently.
What Is a Long-Short Fund?
In simple terms, a long-short fund buys (“long”) stocks expected to rise and sells (“short”) those expected to fall. The short selling happens through derivatives like futures and options.
This dual strategy helps in two ways:
- Reducing downside risk: Short positions can profit when markets fall.
- Enhancing returns: Managers can tactically shift between long and short based on market conditions.
In volatile times, that flexibility can provide smoother returns than traditional long-only mutual funds.
iSIF Hybrid Long-Short Fund: Balancing Growth and Stability
The iSIF Hybrid Long-Short Fund combines the growth potential of equities with the stability of debt. It uses derivatives to hedge, adjust exposure, and generate additional alpha.
Key Highlights:
- Type: Interval fund (buy daily, redeem twice a week – Mondays and Wednesdays).
- Objective: Long-term wealth creation through a blend of equity (65–75%) and fixed income (25–35%).
- Extra Edge: Can use derivatives to take short positions (up to 25%) in both equity and debt.
- Benchmark: CRISIL Hybrid 50:50 Moderate Index.
- Fund Managers: Manish Banthia, Rajat Chandak, and Akhil Kakkar.
- Minimum Investment: ₹10 lakh; SIP available for existing investors.
- Exit Load: 1% if redeemed within 12 months; nil after that.
This fund suits investors looking for a balanced approach — participation in equity upside with some protection and stability via fixed income.
iSIF Equity Ex-Top 100 Long-Short Fund: Hunting for Alpha Beyond the Giants
As the name suggests, this scheme focuses on companies beyond the top 100 by market capitalization — mainly mid-cap and small-cap stocks — while using short strategies to manage risk.
Key Highlights:
- Type: Open-ended (buy and redeem daily).
- Objective: Long-term capital growth by investing in Ex-Top 100 stocks (mid- and small-cap companies).
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Allocation:
- 65–100% in Ex-Top 100 equities.
- Up to 35% in large-cap or debt instruments.
- Up to 20% in REITs/InvITs.
- Benchmark: Nifty 500 Total Return Index.
- Fund Manager: Sankaran Naren (ICICI Prudential CIO).
- Short Exposure: Up to 25% of net assets through derivatives.
- Minimum Investment: ₹10 lakh; SIP facility for existing investors.
This fund targets growth-oriented investors who can handle higher risk in pursuit of superior long-term returns from India’s mid- and small-cap space.
Quick Comparison: Hybrid vs Equity Ex-Top 100
| Feature | iSIF Hybrid Long-Short Fund | iSIF Equity Ex-Top 100 Long-Short Fund |
|---|---|---|
| Type | Interval (redemptions twice weekly) | Open-ended (daily liquidity) |
| Core Focus | Blend of equity (65–75%) + debt (25–35%) | 65–100% in Ex-Top 100 equities |
| Benchmark | CRISIL Hybrid 50:50 Moderate Index | Nifty 500 TRI |
| Short Exposure | Equity + debt derivatives (up to 25%) | Equity derivatives (up to 25%) |
| Exit Load | 1% < 12 months | 1% < 12 months |
| Plans/Options | Direct and Regular; Growth only | Direct and Regular; Growth only |
| Suitable For | Conservative aggressive investors seeking stability | High-risk investors seeking mid/small-cap alpha |
Understanding Costs and Risks
- Expense Ratio (TER): Up to 2.25% (plus GST).
- Stamp Duty: 0.005% on purchase amount.
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Taxes:
- Long-term capital gains (LTCG) over ₹1.25L taxed at 12.5%.
- Short-term (within 12 months) at 20%.
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Risks:
- Market and liquidity risks typical to equity and debt.
- Derivative and leverage risk due to long-short operations.
- Credit risk in debt instruments (handled by internal risk processes).
These funds are meant for sophisticated investors comfortable with short-term volatility for long-term reward.
Who Should Invest in iSIF Funds?
These SIFs are ideal for:
- HNIs and accredited investors seeking hedge-fund-like diversification.
- Investors who understand market cycles and wish to earn returns across bull and bear phases.
- Those who already have traditional mutual funds and now want to upgrade to smarter, tactical strategies.
Both strategies aim to provide alpha generation — returns exceeding the market benchmark — through active management, derivatives, and dynamic asset allocation.
Ready to Upgrade Your Portfolio?
Limited-time NFO alert: Both iSIF strategies open at ₹10/unit. Perfect timing to diversify into hedge-fund-style strategies under SEBI’s new SIF framework.
✅ Accredited investors: No ₹10L minimum
✅ Existing SIF investors: SIP from just ₹5K daily
✅ New investors: Start your sophisticated investing journey
Get your free iSIF Portfolio Fit Assessment — Book a 15-minute call with our CFP professional team to see if these strategies match your goals. Limited slots available.
| Book Free Consultation → | Download iSIF One-Pager | WhatsApp Now |
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