ICICI Prudential Mutual Fund has launched two long-short strategies under the SIF framework, targeting investors seeking flexible, risk-managed returns in volatile markets.
ICICI Prudential Mutual Fund announced the launch of two new offerings under its Specialized Investment Funds (SIF) platform on January 16, 2026, as the fund house aims to cater to investors seeking more flexible and advanced strategies amidst volatile market conditions. These funds are the iSIF Equity Ex-Top 100 Long-Short Fund and the iSIF Hybrid Long-Short Fund.
The New Fund Offer (NFO) for both strategies opened on January 16, 2026, and will remain open until January 30, 2026. These products are being launched under the Securities and Exchange Board of India (SEBI)’s recently introduced SIF framework. This framework falls between traditional mutual funds and Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs), offering investors greater flexibility. The minimum investment per Permanent Account Number (PAN) per SIF is ₹10 lakh.
According to the fund house, both strategies follow a long-short approach and utilize a blend of derivatives, asset allocation, and bottom-up stock picking for superior risk-adjusted returns and to keep volatility under control across market cycles.
Shankaran Naren, Executive Director and CIO of ICICI Prudential Asset Management Company (AMC), said during the launch: “Through the iSIF segment, we are providing investors with investment strategies that are differentiated and can adapt to changing market conditions using the approaches permitted within the long-short investment strategy. The goal here is to deliver superior risk-adjusted outcomes across market cycles.” SEBI introduced the SIF framework to bridge the gap between mutual funds and PMS or AIF products.
This framework gives fund managers greater flexibility in constructing portfolios while maintaining the transparency and regulatory oversight of mutual fund structures. Under this framework, SIFs are permitted to use long-short strategies and unhedged derivatives within specified limits.
iSIF Equity Ex-Top 100 Long-Short Fund
The iSIF Equity Ex-Top 100 Long-Short Fund is an open-ended strategy that focuses on stocks outside the top 100 companies by market capitalization, as classified by the Association of Mutual Funds in India (AMFI). Its objective is to capitalize on growth opportunities in the mid- and small-cap segments, while simultaneously managing the higher volatility associated with these segments through the use of long-short positions and derivatives.
The fund will take long positions in companies with strong fundamentals and selectively short stocks that appear overvalued. The aim is to enable the portfolio to benefit from market uptrends while mitigating the impact of sharp downturns or volatile phases.
This strategy is built on a bottom-up stock selection approach supported by ICICI Prudential Mutual Funds’ in-house research capabilities. The fund is benchmarked against the Nifty 500 TRI.
iSIF Hybrid Long-Short Fund
The iSIF Hybrid Long-Short Fund is an interval strategy that invests in both equity and debt, with the flexibility to take limited short positions in each asset class using derivatives. Its objective is to deliver more stable returns across all market conditions by combining long-short equity positions, fixed income exposure, and tactical derivative strategies.
The fund will actively manage its net equity exposure based on market valuations, trends, and internal models. It will also seek to capitalize on special opportunities such as Initial Public Offerings (IPOs), Qualified Institutional Placements (QIPs), buybacks, and selective debt trades. By combining asset allocation with a long-short strategy, the fund aims to enhance risk-adjusted returns over the medium to long term.
The benchmark for this strategy is the CRISIL Hybrid 50+50 Moderate Index.
How ICICI Prudential plans to generate alpha under iSIF
In addition to the two newly launched strategies, ICICI Prudential’s iSIF platform will rely on several approaches to generate returns. These include active stock and sector selection, the use of derivative strategies such as covered calls and options, carry-based debt investments, and participation in capital market opportunities such as IPOs, block deals, and buybacks.