Icici Prudential Mutual Fund has recently launched two new funds.
ICICI Prudential Mutual Fund has recently launched two funds under its Specialized Investment Funds (SIF) segment. These are iSIF Equity X-Top 100 Long-Short Fund and iSIF Hybrid Long-Short Fund. NFO for both the funds has started on 16 January 2026. Will remain open till 30 January 2026. These investment strategies are designed for investors who want a more flexible portfolio in an environment of frequent market fluctuations, changing leadership and high volatility.
Why Specialized Investment Funds (SIFs)?
To bridge the structural gap that exists between mutual funds and PMS/AIF products, SEBI introduced the Framework for Specialized Investment Funds, with a minimum investment limit of Rs 10 lakh per PAN per SIF. SIFs are envisioned as a middle ground that combines the transparency and regulatory oversight of mutual funds with greater flexibility. It also allows long-short strategies and use of unhedged derivatives up to certain limits.
Speaking at the launch, Sankaran Naren, ED and CIO, ICICI Prudential AMC, said, “Through the iSIF segment, we are offering investors differentiated and unique investment strategies that can adapt to changing market conditions using permitted long-short investment strategies. Our objective is to deliver better risk-adjusted outcomes across different market cycles.
What is iSIF Equity X-Top 100 Long-Short Fund?
iSIF Equity X-Top 100 Long-Short Fund is an open-ended investment strategy, which invests in equities and equity-linked instruments. In this, limited short exposure is also taken through derivatives in X-Top 100 stocks. X-Top 100 stocks mean all those companies other than large-cap companies identified and declared by AMFI. This investment strategy seeks to capitalize on the growth opportunities present in the mid-cap and small-cap segments, while also making a sincere attempt to manage the inherently more volatile nature of these stocks through long-short positions and derivative strategies.
This investment strategy takes long positions in companies with strong fundamentals and selectively builds short positions in stocks with more expensive valuations to participate in overall market opportunities and minimize downside risk. It adopts a bottom-up stock selection approach, which is supported by extensive in-house research conducted across different sectors. However, the asset allocation and investment methodology will be as per the investment strategy information document. The benchmark of this offering is Nifty 500 TRI.
Features of iSIF Hybrid Long-Short Fund
iSIF Hybrid Long-Short Fund is an interval investment strategy, which invests in equity and debt securities. This also includes limited short exposure through derivatives in both equity and debt. The fund seeks to deliver returns that remain relatively stable regardless of the overall direction of the market by combining long-short equity positions, fixed income investments and derivative strategies.
This investment strategy aims to manage volatility by actively adjusting net equity exposure based on market valuations, trends and internal models. Besides, it also participates in special situations like IPO, QIP, buyback and tactical debt. Through this mix of asset allocation and long-short strategies, this investment strategy strives to deliver superior risk-adjusted returns over the medium to long term. However, the asset allocation and investment methodology will be as per the investment strategy information document. The benchmark of this offering is CRISIL Hybrid 50+50 Moderate Index.
Different strategies to achieve alpha returns
Stock and Sector Selection: Active investment decisions across stocks and sectors are taken based on market outlook, mutual valuations and strong fundamental understanding. Derivative strategies: Covered calls, options and other derivative structures are used with the aim of enhancing returns and managing risk.
Carry Based Debt Strategies: Investments are made in carry based debt instruments like corporate bonds, commercial papers (CP) and certificates of deposit (CD).
Capital Market Opportunities: Participation in IPO, QIP, block deals, buyback and other capital market instruments is done under SEBI rules.