iSIF · Sector Rotation Long-Short · Open-ended
iSIF Sector Rotation Long-Short Fund
An open-ended investment strategy investing in equity and equity-related instruments of a maximum of four sectors, including limited short exposure through derivatives. Managed by Sankaran Naren, CIO of ICICI Prudential AMC.
What is the strategy?
The strategy invests at least 80% in equity and equity-related instruments of a maximum of four sectors and follows an active approach. Both long and short exposures may be held through stocks, baskets of stocks and stock or index derivatives representing a sector, with allocation guided by macro-economic trends, sector news and fundamentals. The objective is long-term capital appreciation; there is no assurance it will be achieved.
Sector concentration, by design
Equity exposure is limited to a maximum of four sectors, counting sectors held long and short, drawn from 12 macro-economic sectors such as Financial Services, IT, Energy, Healthcare and Industrials.
Sector-level short exposure
Up to 25% of net assets can be unhedged short, applied at the sector level across all stocks held in that sector. Derivatives exposure can go up to 100% of net assets.
Derivative toolkit
Strategies include equity arbitrage, covered calls, index put and futures hedges, protective puts and calls, and spreads, for hedging, portfolio balancing and other permitted purposes.
Overseas flexibility
Up to 35% can be invested in overseas equity and equity-related instruments, including ADRs, GDRs, foreign securities and ETFs, as permitted.
Indicative asset allocation
Percentage of total assets. Cumulative gross exposure across equity, debt, derivatives, overseas securities, REITs and InvITs cannot exceed 100% of net assets.
Key terms
From the draft Investment Strategy Information Document (ISID). Final terms, NFO dates and risk band are not yet published.
- Category
- Sector Rotation Long-Short Fund
- Fund manager
- Sankaran Naren (Executive Director and CIO, ICICI Prudential AMC)
- Benchmark
- Nifty 500 TRI
- Offer price
- ₹10 per unit during the NFO
- Minimum investment
- ₹10,00,000 and in multiples of ₹1 thereafter, aggregated across all iSIF strategies at PAN level. Accredited investors: ₹10,000
- Additional purchase
- ₹10,000 and in multiples of ₹1 thereafter
- SIP
- Daily ₹5,000 (min. 6 instalments); Weekly / Fortnightly / Monthly ₹10,000 (min. 6); Quarterly ₹20,000 (min. 4). Subject to the ₹10 lakh minimum investment threshold
- Subscription and redemption
- Daily, at NAV-based prices. Redemption proceeds are dispatched within 3 business days
- Exit load
- 1% of applicable NAV if redeemed or switched out within 12 months of allotment; nil after 12 months
- Expenses
- Maximum base expense ratio up to 2.10% p.a. of daily net assets (first ₹500 crore slab), plus statutory levies. Direct Plan has a lower expense ratio
- Plans and options
- Regular and Direct. Growth option only for now
- Listing
- Open-ended; units are not listed on any stock exchange at present
Scheme name, NFO dates, ISID and risk-o-meter will be added once ICICI Prudential Mutual Fund publishes them. Official page: isif.icicipruamc.com.
Disclaimer: Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision. iSIF Sector Rotation Long-Short Fund details shown here are from the AMC’s announcement and are subject to change.