ICICI Prudential Asset Management has launched two new investment strategies — the ISIF Active Asset Allocator Long-Short Fund and the ISIF Equity Long-Short Fund.
The new fund offer, or NFO, opened today and will remain open until June 2.
The company says these strategies are designed to give investors a more flexible way to invest by using long-short positions and derivative-based risk management.
What Is the Goal of These Funds?
According to ICICI Prudential AMC, markets are changing quickly across asset classes, sectors, styles, and market caps. In such a situation, a fixed investment approach may not always work well.
S. Naren, Executive Director and CIO of ICICI Prudential AMC, said the ISIF platform is meant to help investors with strategies that can adjust to market conditions more actively.
The funds will use asset allocation frameworks, derivatives, and long-short positioning to do this.
Minimum Investment Amount
For first-time investors, the minimum investment in both strategies is ₹10 lakh. After that, investments can be made in multiples of ₹1.
For existing investors who have already met the minimum investment limit, the minimum amount is ₹10,000, also in multiples of ₹1.
iSIF Active Asset Allocator Long-Short Fund
The iSIF Active Asset Allocator Long-Short Fund is an interval strategy that can invest in equity, debt, equity and debt derivatives, InvITs, and commodity derivatives.
It can also take limited short exposure through permitted derivative instruments.
This strategy aims to change allocations based on market valuations, macroeconomic conditions, and risk-adjusted opportunities.
In simple terms, it tries to invest more in assets that look attractive and reduce risk when markets become expensive.
The fund may increase equity exposure when valuations are favorable and reduce it when conditions turn less supportive. It can also use short positions of up to 25% of net assets through derivatives.
iSIF Equity Long-Short Fund
The iSIF Equity Long-Short Fund is an open-ended equity strategy. It invests in listed equities and equity-linked instruments, with limited short exposure through derivatives.
This fund looks for opportunities across market caps, sectors, and styles. It covers more than 650 companies to find potential investment opportunities.
The stock selection process is based on reasonable valuations, growth potential, business fundamentals, industry structure, management quality, and earnings drivers.
This strategy also offers a long-term capital gains tax rate of 12.5% with a holding period of 12 months
