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iSIF Hybrid Long-Short Fund

By ICICI Prudential Mutual Fund · Managed by Manish Banthia, Rajat Chandak & team · Launched Feb 2026

ICICI Prudential's hybrid long-short SIF — a 65–75% equity book with up to 25% unhedged short exposure through derivatives, inside an equity-taxation wrapper. Benchmarked to the CRISIL Hybrid 50+50 Moderate Index.

Hybrid Long-Short SEBI Reg · ₹10L min · Interval (twice-weekly) Equity taxation (12.5% LTCG)
Trustner Fund Score
78/100
High
Educational score — not a buy/sell recommendation
1M Return
▲ 1.55%
Value Research · 13 Jun 26
3M Return
▲ 4.08%
Regular plan
AUM
₹844 Cr
Net assets (VR)
VR Risk Level
5
VR risk level
Expense Ratio
2.64%
Regular plan TER
Min Investment
₹10L
Aggregated PAN basis

The Trustner Fund Score: 78 / 100

Seven pillars, weighted by long-term importance for an HNI portfolio. iSIF Hybrid wins on three: manager pedigree, strategy coherence, and the ICICI Pru institutional platform. Cost & liquidity is good; track record is the only structural gap (it just launched).

Pillar 1 · Manager
18/20
Manager Pedigree
The scheme is run by the team named in ICICI Prudential's KIM — CIO–Fixed Income Manish Banthia (with the AMC since 2005) and senior equity manager Rajat Chandak (since 2008), alongside Akhil Kakkar and Ayush Shah. We score manager pedigree on that institutional bench and ICICI Prudential's process depth, not a single star name.
Pillar 2 · Strategy
14/15
Strategy Coherence
The scheme runs a 65–75% equity book with up to 25% unhedged short exposure through derivatives — a clean long-short overlay rather than a pure arbitrage hybrid. Structurally it is close to SBI's Magnum; we rate strategy coherence on the clarity of that mandate, not a claim of a uniquely wide band.
Pillar 3 · Platform
14/15
AMC Platform
ICICI Pru runs ₹8.5+ lakh crore AUM with one of India's deepest research benches and best-in-class risk systems. The platform that survived the Franklin debt crisis without a single yield blow-up.
Pillar 4 · Cost & Liquidity
8/10
Cost & Liquidity
Regular-plan TER 2.64% (Value Research). Twice-weekly (interval) redemption, ~3 business-day settlement, 1% exit load within 12 months. Still structured below the all-in cost of a Cat-III AIF (management fee + ~20% performance fee).
Pillar 5 · Risk Architecture
12/15
Risk Architecture
Risk band 5 (Value Research). Short side via index/stock derivatives with strict notional caps. By design, the mandate can cut net equity hard in expensive markets — intended to cushion drawdowns versus a 50:50 equity-debt benchmark, though that is a structural feature, not yet a proven live record.
Pillar 6 · Track Record
5/15
Track Record
The single structural weakness: only months live. The March 2026 drawdown is the only stress data point so far, and we deliberately score this pillar low until at least 12 months of SIF-specific data exist.
Pillar 7 · Investor-fit
7/10
Investor-fit
Structured for investors comfortable with equity risk who want a single equity-taxed hybrid holding in place of separate balanced and debt funds. Less suitable for income-seekers (no dividend) or investors below ₹10 L corpus.

How the fund actually invests

The structural mechanics behind the rating — what the manager can and can't do, how positioning shifts across the cycle.

The scheme holds 65–75% in equity, with up to 25% of net assets in unhedged short positions via derivatives. Per the SID, cumulative gross exposure is capped at 100% of net assets. It is a long-biased hybrid with a short overlay — not a fund that can sit net-short the market. Its structure is similar to SBI Magnum; Edelweiss Altiva runs a wider equity band (25–75%).

The short side comes from index and select stock derivatives. The short book targets richly-valued index components — Nifty 50 futures or single-stock futures — where the fundamental case looks stretched. The derivative book operates within the SID's cumulative gross-exposure cap of 100% of net assets.

The 25–35% debt sleeve acts as a yield floor. It is held predominantly in high-grade corporates. Manish Banthia — ICICI Prudential's CIO for Fixed Income — runs the debt sleeve with the AMC's conservative house playbook: no aggressive duration calls, no credit experiments.

The early-2026 mid-cap correction was the fund's first real stress test. A hybrid with a short overlay can lean more defensively when valuations turn, cushioning part of a drawdown that a fully-invested fund would take in full. With only months of live data, how it behaves through such windows is what we watch most closely as a record builds.

Fund mechanics

Equity allocation
65% to 75% of assets
Debt allocation
25% to 35%
Predominantly high-grade corporates
Unhedged short
0% to 25% of net assets
Index & stock F&O; gross exposure ≤100%
Benchmark
CRISIL Hybrid 50+50 Moderate Index
Risk Band
Level 5 of 5 (Value Research)
Expense ratio
See live figure above (Regular plan · Value Research)
Redemption
Interval — twice weekly (Mon & Wed)
Min investment
₹10 lakh (PAN-level; ₹1L accredited)
Liquidity
Interval; proceeds within ~3 business days
Exit load
1% if redeemed within 12 months; nil after
Tax treatment
Equity-oriented
12.5% LTCG >12m, 20% STCG
The Trustner Research Desk view

The mandate is straightforward to read: a 65–75% equity book alongside a 25–35% debt sleeve, with an unhedged short overlay of up to 25% of net assets run through derivatives and cumulative gross exposure capped at 100% of net assets. It is benchmarked to the CRISIL Hybrid 50+50 Moderate Index. Structurally it sits close to SBI Magnum — a long-biased hybrid with a short overlay, not a fund that can go net-short the market, and not a uniquely wide mandate.

Because the scheme stays equity-oriented, gains are taxed as equity: 12.5% LTCG after a 12-month holding period and 20% STCG. Investors often weigh that treatment against the fund's risk profile — Value Research places it in Risk Band 5 of 5, the top of the scale, reflecting the equity load and the derivative short book.

Two structural features deserve equal attention. It is an interval scheme rather than an open-ended fund: redemptions are accepted only twice a week (Monday and Wednesday), proceeds typically arrive about three business days later, and a 1% exit load applies within 12 months — so it is materially less liquid than a daily-dealing fund. It has also been live only since February 2026, under a year, covering a single stress window in the early-2026 mid-cap correction, so the live NAV and returns shown above rest on a very short record. Past performance is not indicative of future returns.

The scheme is run inside ICICI Prudential's process rather than on one person: the KIM names Manish Banthia (CIO – Fixed Income), Rajat Chandak (senior equity, with the AMC since 2008), Akhil Kakkar and Ayush Shah. Trustner's proprietary Fund Score for the scheme is 78 of 100 — an educational opinion, not a recommendation to buy or sell. What matters for any investor is whether the mandate, liquidity terms and risk band above fit their own objectives.

— Trustner Research Desk · Reviewed July 2026

Who this fund may suit

SIFs carry a regulatory minimum investment of ₹10 lakh (₹1 lakh for accredited investors), so this fund is structured for a particular kind of investor. The profiles below are purely educational illustrations of who a long-short hybrid of this type is generally designed for — they are not personalised advice. Trustner is an AMFI-registered mutual-fund distributor, not an investment adviser, and does not prescribe how much of any portfolio to place in this or any scheme.

The tax-aware hybrid investor
Someone comfortable with equity-market risk who wants a single equity-taxed hybrid holding and values that gains fall under 12.5% LTCG after 12 months rather than slab-rate income. A point to weigh: the 5-of-5 risk band and the short overlay mean this is not a low-volatility debt substitute.
Tag · Equity-taxed hybrid
The long-short-aware allocator
Investors who already understand how derivative short positions behave and want to see a rules-based short overlay inside a mutual-fund wrapper. A point to weigh: cumulative gross exposure is capped at 100% of net assets, so this is a long-biased hybrid, not a fund that can sit net-short the market.
Tag · Long-short overlay
The liquidity-flexible investor
Those who do not need daily access to their capital and can work within an interval structure — redemptions only on Monday and Wednesday, proceeds in about three business days, and a 1% exit load inside 12 months. A point to weigh: the sub-one-year live record spans only a single stress window.
Tag · Interval liquidity

How iSIF Hybrid compares to its closest peers

Three Hybrid Long-Short SIFs run by top-tier AMCs. Altiva has the widest equity band and the longest live track record; Magnum has the largest AUM. Note that Altiva is taxed as a non-equity hybrid (LTCG after 24 months) while iSIF Hybrid and Magnum are equity-oriented.

AttributeiSIF HybridAltiva HybridMagnum Hybrid
TFS Score78 High76 Solid75 Solid
AMCICICI PrudentialEdelweissSBI
Fund manager(s)Banthia, Chandak & teamDalal, Lahoti & teamGaurav Mehta
LaunchedFeb 2026Oct 2025Oct 2025
Equity allocation65–75%25–75%65–75%
AUM₹844 Cr₹4,466 Cr₹3,462 Cr
Best fitLong-biased hybrid + short overlayWide-band hybridMass-affluent core

Bold = leader on that row. Data as of July 2026. See all 28 live SIFs in the fund universe →

What can go wrong

This fund sits in our High band. That doesn't mean risk-free — these are the four scenarios where the thesis would weaken.

⚠ Manager-key risk
A new SIF is still building a record under its current team. ICICI Prudential's process reduces single-manager dependence, but manager changes early in a fund's life would reset that clock — worth monitoring.
⚠ Sustained low-vol regime
If markets grind sideways for 18+ months with no shorting opportunities, the fund could underperform straight equity LS peers that just stay long.
⚠ Tax regime change
If 12.5% equity LTCG is harmonized upward with debt taxation (slab rate), the entire SIF tax arbitrage collapses. Watching Budget 2027.
⚠ AUM bloat
If the fund crosses ₹5,000 Cr without slowing inflows, opportunistic positioning becomes harder. We will downgrade if this happens without a soft close.
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Who runs the money

The management team

The people responsible for this SIF, as named in the scheme's official disclosures. Backgrounds are drawn from published fund and AMC sources; fund managers can change over the life of a scheme.

MB
Manish Banthia
CIO – Fixed Income · ICICI Prudential

With ICICI Prudential AMC since 2005 and nearly two decades in fixed income (CA, MBA). Oversees the AMC's debt strategy across its bond and hybrid schemes.

RC
Rajat Chandak
Senior Equity Fund Manager · ICICI Prudential

With ICICI Prudential AMC since 2008. Also manages or co-manages the firm's Flexicap, Balanced Advantage and Smallcap funds.

AK
Akhil Kakkar
Fund Manager · ICICI Prudential

B.Tech (IIT Roorkee) and a PGDM in Finance; earlier roles at Kotak Mahindra Bank, SBI Capital Markets and Goldman Sachs.

AS
Ayush Shah
Fund Manager · ICICI Prudential

Named as a designated fund manager of the scheme since its 2026 launch.

Sources: ICICI Prudential's official Key Information Memorandum for the scheme (names all four managers); manager backgrounds via Value Research, Groww and Tickertape. Note: Sankaran Naren is ICICI Prudential's ED & CIO and is not a designated fund manager of this specific scheme.

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