Key Takeaways
- • Sundaram Mutual's new Select Equity Ex-Top 100 Long-Short Fund, a Specialised Investment Fund (SIF), opened its new fund offer on October 21, 2026 and closes on November 4, 2026.
- • The fund will invest predominantly in companies ranked 101st to 750th by market capitalisation, per the AMFI large-cap classification, and will build a concentrated portfolio of 25 to 40 stocks.
- • The strategy permits unhedged short exposure of up to 25% through equity and equity-related derivatives, used for hedging or to seek additional returns.
- • Minimum application is ₹10 lakh for regular investors and ₹1 lakh for accredited investors during the NFO, with a 1% exit load on redemptions within one year of allotment.
- • The fund is benchmarked against the Nifty MidSmallcap 400 TRI and carries equity, derivative, liquidity and leverage risks that the fund house and article both flag.
Summary
Sundaram Mutual has launched the NFO for its Select Equity Ex-Top 100 Long-Short Fund, a SIF that combines stock selection with the ability to take short positions through equity derivatives. The NFO opened on October 21, 2026 and will close on November 4, 2026. According to the fund house, the minimum application amount is ₹10 lakh for regular investors and ₹1 lakh for accredited investors. The fund aims for long-term capital appreciation and is benchmarked against the Nifty MidSmallcap 400 Total Return Index.
The fund's mandate centres on companies outside the top 100 by market capitalisation, specifically those ranked 101st to 750th, using the large-cap classification published by the Association of Mutual Funds in India (AMFI). The manager plans to hold 25 to 40 stocks selected through a bottom-up process, targeting businesses that may benefit from manufacturing growth, technology platforms and premiumisation.
Under normal conditions, 65% to 100% of assets will be allocated to equity and equity-related securities, including REITs, of companies outside the top 100. Up to 25% of this allocation may be unhedged short exposure. The fund may also allocate up to 35% to other equities, up to 35% to debt and money market instruments, and up to 10% to InvIT units. Madanagopal Ramu will manage the equity portfolio, Sandeep Agarwal will handle fixed income, and Shalav Saket will manage overseas investments. The fund is not required to hold short positions at the maximum permitted level.
The article notes that SIFs are a regulated category under SEBI's framework that permits strategies, including long-short approaches, unavailable to conventional mutual fund schemes. It also cautions that greater flexibility does not necessarily translate into higher returns. Key risks cited include mid- and small-cap volatility and lower liquidity, losses on short positions if prices rise, leverage and valuation risks in derivatives, and the possibility that hedges will not fully offset losses. A 1% exit load applies to redemptions or switch-outs on or before one year from allotment.
The fund's mandate centres on companies outside the top 100 by market capitalisation, specifically those ranked 101st to 750th, using the large-cap classification published by the Association of Mutual Funds in India (AMFI). The manager plans to hold 25 to 40 stocks selected through a bottom-up process, targeting businesses that may benefit from manufacturing growth, technology platforms and premiumisation.
Under normal conditions, 65% to 100% of assets will be allocated to equity and equity-related securities, including REITs, of companies outside the top 100. Up to 25% of this allocation may be unhedged short exposure. The fund may also allocate up to 35% to other equities, up to 35% to debt and money market instruments, and up to 10% to InvIT units. Madanagopal Ramu will manage the equity portfolio, Sandeep Agarwal will handle fixed income, and Shalav Saket will manage overseas investments. The fund is not required to hold short positions at the maximum permitted level.
The article notes that SIFs are a regulated category under SEBI's framework that permits strategies, including long-short approaches, unavailable to conventional mutual fund schemes. It also cautions that greater flexibility does not necessarily translate into higher returns. Key risks cited include mid- and small-cap volatility and lower liquidity, losses on short positions if prices rise, leverage and valuation risks in derivatives, and the possibility that hedges will not fully offset losses. A 1% exit load applies to redemptions or switch-outs on or before one year from allotment.
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