Mahindra Manulife Mutual Fund has opened the NFO of the MSIF Equity Long-Short Fund, an open-ended strategy under its SIF brand, MSIF. The new fund offer (NFO) runs from 30-09-2026 to 14-10-2026, with regular transactions from 26-10-2026.
It invests mostly in Indian shares and can bet against stocks or the index through derivatives, up to 25% of assets.
That short side sets it apart from a regular equity fund, and is why it sits inside a specialised investment fund with a ₹10 lakh entry point.
MSIF Equity Long-Short Fund NFO details
Particulars | Details |
Fund name | |
Fund type | Open-ended equity strategy with limited short exposure |
Category | Equity Long-Short Fund |
Nature of scheme | Active |
Benchmark | Nifty 500 TRI |
Fund managers | Aalap Shah, Abhishek Jaiswal |
NFO opens | 30-09-2026 |
NFO closes | 14-10-2026 |
Reopening date | 26-10-2026 |
Minimum investment | ₹10 lakh (₹1 lakh for accredited investors) |
Additional investment | ₹1,000 |
SIP amount | ₹5,000, once the ₹10 lakh threshold is met |
NAV | ₹10 |
Risk band | Level 5 |
Stamp duty | 0.005% on purchases |
Entry load | Nil |
Exit load | 0.5% within 3 months of allotment; nil after |
Mahindra Manulife Mutual Fund AMC details
Particulars | Details |
AMC name | ₹34,805 crore |
Assets under management | Not available |
Website | |
Registered office | Unit No. 204, 2nd Floor, Amiti Building, Piramal Agastya Corporate Park, LBS Road, Kurla (West), Mumbai 400070 |
Contact number | 1800-419-6244 |
Source: AMFI India: New fund offer | MSIF Equity Long-Short Fund
What has Mahindra Manulife launched with MSIF?
This is an actively managed equity strategy: the managers pick stocks rather than copy an index.
It can buy companies of any size or sector, with up to 20% overseas. The aim is long-term capital growth across market cycles, though this is not assured.
Most of the money will be “long”, meaning it owns shares that gain when prices rise. A smaller part can be “short”: a position that gains when a stock or index falls.
Also read: A detailed guide on specialised investment funds (SIFs)
How the MSIF Equity Long-Short Fund strategy works
Picture two books: one holds stocks the managers like, the other bets against those they expect to lag.
Step | What happens? |
1 | NFO money waits in short-term government-backed instruments |
2 | Companies are screened on earnings, return ratios and valuation |
3 | Chosen stocks form the long book |
4 | Overpriced stocks or sectors are flagged |
5 | Shorts are placed via futures or options, within 25% |
6 | Options may hedge or earn premium through covered calls |
7 | Limit breaches are corrected within set timelines |
The MSIF long-short approach: an example
Rekha, a 48-year-old Ahmedabad business owner, invests ₹12 lakh. Most of it goes into the long book of Indian shares.
The managers think one sector looks expensive, so they sell futures on it within the 25% limit.
If that sector falls, the short gains and cushions the portfolio. If it rises, the short loses money.
She sees only the net result in the NAV.
MSIF Equity Long-Short Fund portfolio allocation
Instrument | Minimum (%) | Maximum (%) |
Equity and equity related instruments | 80 | 100 |
Debt and money market instruments | 0 | 20 |
InvIT units | 0 | 10 |
Unhedged short exposure (within the above) | 0 | 25 |
Overseas securities (within the above) | 0 | 20 |
Total gross exposure is capped at 100% of net assets, so positions cannot exceed the fund’s own money.
Investment strategy of the MSIF Equity Long-Short Fund
Stock selection
Aalap Shah and Abhishek Jaiswal combine company research with views on themes and the economy, looking for earnings growth, sound use of capital and fair prices. Both earlier ran AIF portfolios at Nippon Life India AIF and Dolat Capital; Abhishek Jaiswal was co-head of long-short at Nippon.
Short positions and derivatives
Derivatives are contracts whose value comes from a share or an index. Here they hedge, rebalance and run the capped short book, guided by valuations, earnings outlook and quantitative signals.
Risk controls and liquidity
The AMC monitors limits and risk ratios through its front office system. Redemptions are allowed every business day, with payment normally within three working days.
Potential benefits of the MSIF long-short strategy
Potential benefit | Why does it matter? |
Ability to short | Can try to gain from falling prices, beyond simple hedging |
Wide universe | No size or sector limit gives managers more room for ideas |
Daily liquidity | No lock-in; you can redeem on any business day |
Key risks in the MSIF Equity Long-Short Fund
Risk | What does it mean? |
Market risk | Share prices can fall on economic, political or global events |
Derivative risk | Futures and options can magnify losses |
Strategy risk | Wrong calls on either side can cost money |
Liquidity risk | Some positions may be hard to exit in stressed markets |
Concentration risk | Big sector bets can make the NAV swing more |
Interest rate and credit risk | The debt portion can lose value if interest rates rise or an issuer defaults |
Tax risk | Equity taxation may not apply if domestic shares average below 65% |
Who may consider the MSIF Equity Long-Short Fund?
Investor type | Why it may fit |
HNI with ₹10 lakh to spare | Wants equity with a defensive tool |
Accredited investor | Can enter from ₹1 lakh |
Existing equity fund investor | Adds a short book plain funds lack |
NRI in the Gulf with a rupee corpus | Stays in Indian equity with daily liquidity |
Also read: How to choose the right SIF investment options for your financial goals
Who may not find this SIF suitable?
Investor type | Why it may not fit |
First-time investor | Shorting and derivatives need market experience |
Goal within 3 years | Equity swings can hurt near-term money |
Capital protection seeker | Losses can come from both long and short sides |
Track record seeker | A new strategy has no performance history |
MSIF Equity Long-Short Fund vs traditional options
Option | Risk | Return potential | Volatility | Liquidity | Horizon | Suitable investor |
Fixed deposit | Low | Fixed | None | Early exit penalty | 1 to 5 years | Safety seeker |
Debt mutual fund | Low to moderate | Moderate | Low | High | 1 to 3 years | Income seeker |
Hybrid fund | Moderate | Moderate to high | Moderate | High | 3 years plus | Balanced investor |
Equity mutual fund | High | High | High | High | 5 years plus | Growth seeker |
MSIF Equity Long-Short Fund | High | High, manager dependent | High | Daily | 5 years plus | HNI, accredited investor |
MSIF Equity Long-Short Fund Review by Zenith Finserve
In our view, this strategy fits a goal five to seven years away, such as a retirement top-up or a child’s 2033 overseas education fund. It suits someone who already holds core equity funds and meets the ₹10 lakh threshold comfortably.
The risk is high. The 25% short cap is a tool for weak markets, but also a second way to be wrong. The managers’ AIF background helps, yet this strategy has no record of its own.
We see it as a satellite next to a broad equity fund, not a replacement. With a base expense ratio of up to 2.10% a year, weigh cost and suitability before investing.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments.
We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith
- Altiva Equity Long-Short Fund (Edelweiss): a similar equity long-short SIF to compare costs with.
- DynaSIF Equity Ex-Top 100 Long-Short Fund (360 ONE): excludes the 100 largest firms, unlike MSIF.
- Titanium Active Asset Allocator Long-Short Fund (Tata): a multi-asset long-short SIF.
MSIF Equity Long-Short Fund FAQs
What does the MSIF Equity Long-Short Fund invest in?
Mainly Indian shares, plus derivative shorts of up to 25%.
When does the MSIF Equity Long-Short Fund NFO close?
On 14-10-2026. It reopens on 26-10-2026.
What is the minimum investment?
₹10 lakh across MSIF strategies at PAN level, or ₹1 lakh for accredited investors.
Is the MSIF Equity Long-Short Fund NFO good to invest in?
It depends on your goals; it suits experienced, long-horizon investors.
Can I start an SIP?
Yes, from ₹5,000, once the ₹10 lakh threshold is met.
What is the exit load?
0.5% within three months of allotment; nil after.
What if my investment falls below ₹10 lakh?
A market fall is not a breach, but you can then only redeem fully.
How is it taxed?
Equity taxation, including long-term capital gains rules, applies if domestic shares average at least 65%.
Who manages the fund?
Aalap Shah and Abhishek Jaiswal of Mahindra Manulife.
MSIF Equity Long-Short Fund review: how is it different from an equity mutual fund?
An equity fund can only hedge; this SIF can hold unhedged shorts up to 25%.
