ICICI Prudential Mutual Fund’s iSIF launches Active Asset Allocator Long-Short Fund and Equity Long-Short Fund

ICICI Prudential Asset Management Company Limited today announced the launch of two new investment strategies, iSIF Active Asset Allocator Long-Short Fund and iSIF Equity Long-Short Fund. The New Fund Offer (NFO) for both investment strategies will open on May 19, 2026 and close on June 02, 2026. The two strategies seek to provide more adaptive portfolio construction frameworks with long-short positioning and derivatives-based risk management.

Commenting on the launch, Mr. Sankaran Naren, Executive Director and CIO, ICICI Prudential AMC, said, “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.”

iSIF Active Asset Allocator Long-Short Fund

iSIF Active Asset Allocator Long-Short Fund is an interval investment strategy dynamically investing across equity, debt, equity and debt derivatives, InVITs and commodity derivatives, including limited short exposure on permitted instruments through derivatives.

Investment Strategy Framework

The investment strategy seeks to actively shift allocations based on cross-asset valuations, macroeconomic conditions and risk-adjusted opportunities. The 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 that incorporates valuation indicators, technical signals and macro-overlays to determine allocation across asset classes. The strategy follows a counter-cyclical philosophy of ‘buy low, sell high’, increasing equity allocation when valuations are attractive and reducing exposure when markets become expensive. The strategy may also use derivative-based long-short positioning with unhedged short exposure of up to 25 per cent of net assets through permitted instruments.

#Derivatives exposure will be up to 100 per cent and unhedged short position will be up to 25 per cent of net assets. *Participation of Mutual Funds in ETCDs, Multi Asset Allocation Schemes/Investment Strategies shall not exceed 30 per cent of the NAV of the scheme/investment strategy and other Hybrid Schemes excluding Multi Asset Allocation Schemes/Investment Strategies shall not exceed 10 per cent of the NAV of the scheme/investment strategy.

Historical Allocation based on In-house Model

Data as on April 27, 2026. The above chart is for reference purposes only and shall not be construed as the actual level of allocation. Please note that commodities allocation includes gold. The model mentioned above is developed in-house and is not exhaustive. The investments of the Investment Strategy would be as per the asset allocation and investment approach of the Investment Strategy Information Document.

iSIF Equity Long-Short Fund

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

Investment philosophy: The investment strategy aims to identify and invest in potential opportunities across market capitalisation, sectors and styles.

Investment universe: The investment strategy will focus on 650+ companies under coverage to capture market opportunities.

Security selection: The investment strategy will choose stocks that will be selected based on various factors, fundamentals of the business, industry structure, quality of management, key earning drivers, etc., at reasonable valuations vis-a-vis its growth prospects.

Taxation: The investment strategy will enjoy an LTCG rate of 12.5 per cent with a holding period of 12 months.

The investments of the Investment Strategy would be as per the asset allocation and investment approach of the Investment Strategy Information Document. Please consult your tax advisor for further details on taxation.

Investment Strategy Framework

#Derivatives exposure will be up to 100 per cent and unhedged short position will be up to 25 per cent of net assets. *Includes investments of up to 35 per cent in overseas markets in equity and equity-related instruments.

Product Details

iSIF Active Asset Allocator Long-Short Fund

Minimum Investment:
- For first-time investor in SIF - Rs 10,00,000 (plus in multiple of Re 1).
- For existing investor who has complied with the Minimum Investment Threshold - Rs 10,000 (plus in multiple of Re 1)
Plans: Regular Plan and Direct Plan (Growth option)
Benchmark: iSIF Active Asset Allocator Long-Short Fund - 50 per cent Nifty 500 TRI + 40 per cent Nifty Composite Debt Index + 7 per cent Domestic Price of Gold + 3 per cent Domestic Price of Silver
Fund Manager: Mr. Ihab Dalwai, Ms. Sharmila D’silva, Ms. Masoomi Jhurmrvala; Mr. Manish Banthia; Mr. Akhil Kakkar; Mr. Gaurav Chikne

iSIF Equity Long-Short Fund

Minimum Investment:
- For first-time investor in SIF - Rs 10,00,000 (plus in multiple of Re 1)
- For existing investor who has complied with the Minimum Investment Threshold - Rs 10,000 (plus in multiple of Re 1)
Plans: Regular Plan and Direct Plan (Growth option)
Benchmark: iSIF Equity Long-Short Fund - Nifty 500 TRI
Fund Manager: Mr. Mittul Kalawadia, Ms. Nitya Mishra, Ms. Sri Sharma
 

Disclaimer: This article is for informational purposes only and does not constitute investment advice.