ICICI Prudential Asset Management Company has launched two new strategies under its Specialised Investment Funds (SIF) segment: iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund. The NFOs are open for subscription till June 2. The strategies aim to offer adaptive portfolio construction through long-short positioning, dynamic asset allocation and derivatives-based risk management.

NFO Alert: ICICI Prudential MF’s iSIF launches active asset allocator and long-short funds

Synopsis

ICICI Prudential Asset Management Company has launched two new strategies under its Specialised Investment Funds (SIF) segment: iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund. The NFOs are open for subscription till June 2. The strategies aim to offer adaptive portfolio construction through long-short positioning, dynamic asset allocation and derivatives-based risk management.

ICICI Prudential Asset Management Company on Tuesday announced the launch of two new investment strategies under its Specialised Investment Funds (SIF) segment: iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund.

The new fund offers (NFOs) for both investment strategies are currently open for subscription and will close on June 2. The two strategies aim to offer more adaptive portfolio construction through long-short positioning and derivatives-based risk management.

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“Markets are increasingly characterised by sharp rotations across asset classes, sectors, styles and market capitalisations. In such an environment, static allocation approaches may not always be sufficient. Through the iSIF platform, we aim to provide investors with more flexible strategies that can dynamically adapt to changing market conditions using asset allocation frameworks, derivatives and long-short positioning,” said Sankaran Naren.

The minimum investment amount for first-time investors in both strategies is Rs 10 lakh (and in multiples of Re 1 thereafter). Existing investors who have already met the minimum investment threshold can invest a minimum of Rs 10,000 (and in multiples of Re 1 thereafter).

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iSIF Active Asset Allocator Long-Short Fund

The iSIF Active Asset Allocator Long-Short Fund is an interval investment strategy that invests across equity, debt, equity and debt derivatives, InvITs, and commodity derivatives, including limited short exposure through permitted derivative instruments.

The strategy aims to shift allocations based on cross-asset valuations, macroeconomic conditions and risk-adjusted opportunities. Its framework combines equity exposure for long-term capital appreciation, debt allocation for stability and carry opportunities, commodities for diversification and inflation hedging, and InvITs for additional diversification.

The investment process uses a proprietary asset allocation model incorporating valuation indicators, technical signals, and macro overlays to determine allocations across asset classes.

It follows a counter-cyclical “buy low, sell high” approach, increasing equity exposure when valuations are attractive and reducing it when markets become expensive. It may also deploy derivative-based long-short positions with unhedged short exposure of up to 25% of net assets through permitted instruments.

The fund will be benchmarked against 50% Nifty 500 TRI + 40% Nifty Composite Debt Index + 7% domestic gold prices + 3% domestic silver prices. The strategy will be managed by Ihab Dalwai, Sharmila D’silva, Masoomi Jhurmrvala, Manish Banthia, Akhil Kakkar and Gaurav Chikne.

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iSIF Equity Long-Short Fund

The iSIF Equity Long-Short Fund is an open-ended equity strategy that invests in listed equities and equity-related instruments, including limited short exposure through derivative instruments.

The strategy aims to identify and invest in opportunities across market capitalisations, sectors and investment styles. It will focus on more than 650 companies under coverage to capture market opportunities.

Stocks will be selected based on multiple factors, including business fundamentals, industry structure, quality of management, key earnings drivers and reasonable valuations relative to growth prospects. The strategy will attract a long-term capital gains (LTCG) tax rate of 12.5% with a holding period of 12 months.

The fund will be benchmarked against the Nifty 500 TRI and managed by Mittul Kalawadia, Nitya Mishra and Sri Sharma.

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