Sundaram Asset Management Company Limited is launching the Select Equity Ex-Top 100 Long-Short Fund under its Select SIF brand. The new fund offer (NFO) opens on 21-10-2026 and closes on 04-11-2026.
It is a Specialised Investment Fund (SIF) strategy. A SIF sits between a regular mutual fund and a portfolio management service, with a ₹10 lakh starting cheque.
It mainly buys shares of companies outside India’s 100 largest and can take limited short positions. The stated aim is long-term capital growth.
Select Equity Ex-Top 100 Long-Short Fund NFO details
Fund name | |
Fund type | Open-ended |
Category | Equity Ex-Top 100 Long-Short Fund (SIF) |
Nature of scheme | Equity and related securities, with limited short exposure via derivatives |
Benchmark | Nifty MidSmall Cap 400 TRI |
Fund managers | Madanagopal Ramu; Sandeep Agarwal (fixed income); Shalav Saket (overseas investments) |
NFO opens | 21-10-2026 |
NFO closes | 04-11-2026 |
Allotment / reopening date | Reopens 11-11-2026. Allotment date: Not available. |
Minimum investment | ₹10,00,000 and multiples of ₹1 (₹1,00,000 for accredited investors) |
Additional investment | ₹1,000 and multiples of ₹1 (existing investors) |
SIP amount | ₹5,000 a month, minimum 6 instalments, for existing investors |
NAV | ₹10 per unit during the NFO |
Plans and options | Regular and Direct; each with Growth and IDCW (default: Growth) |
Stamp duty | Not available |
Entry load | Not available |
Exit load | 1% if redeemed or switched out within 1 year of allotment; nil after 1 year |
Sundaram Asset Management Company Limited: AMC details
AMC name | Sundaram Asset Management Company Limited |
Assets under management | Not available |
Website | |
Registered office | 21, Patullos Road, Chennai, Tamil Nadu 600002 |
Contact number | 1860 425 7237 |
Source: AMFI India (New fund offer): Select Equity Ex-Top 100 Long-Short Fund
What has Sundaram launched with this SIF strategy?
This is an open-ended equity strategy, so you can buy and sell units on any business day once the NFO ends.
It is actively managed: the managers pick stocks instead of copying an index.
“Ex-top 100” means every listed company except the 100 largest by market value, per the AMFI list. Sundaram’s scheme page puts the universe at companies ranked 101 to 750, held as about 25 to 40 stocks.
It can also go short through derivatives. A short position gains when a share price falls and loses when it rises. Unhedged short exposure can reach 25% of net assets.
Also read: A detailed guide on Specialised Investment Funds
How does this long-short strategy work?
The fund buys companies it likes, shorts a few it does not, and stays within fixed limits.
Step | What happens? |
1. Screen | Start with listed companies outside the top 100. |
2. Research | Study business quality, industry, management and earnings. No sector bias. |
3. Buy | Chosen shares form the core, at least 65% in Ex-top 100 equity. |
4. Short | Where weakness is expected, short through futures or options, up to 25% of net assets. |
5. Balance | Hedges, covered calls and pair trades fine-tune the mix. Spare money can go to debt or overseas. |
6. Rebalance | If limits slip, bring the portfolio back within SEBI timelines. |
Let’s understand with a simple example
Imagine two mid-sized chemical makers, Company A and Company B (both made up).
The managers like Company A, so the fund buys its shares. Company B looks stretched, so they short it through a futures contract.
If the sector rises, the loss on B may offset the gain on A. If it falls, the short on B may cushion A. The pair aims to reward the better company.
This shows mechanics only, not expected returns.
Portfolio allocation of the fund
Instrument | Minimum | Maximum |
Ex-top 100 equity and related securities, including REITs and up to 25% unhedged short exposure through derivatives | 65% | 100% |
Other equity and related securities | 0% | 35% |
Debt, money market instruments and units of debt funds | 0% | 35% |
InvIT units | 0% | 10% |
Overseas securities can take up to 30%. Total gross exposure cannot exceed 100% of net assets.
Investment strategy: how the fund picks and manages positions
Choosing stocks
The approach is bottom-up: picks rest on each company’s own strengths, not a view of the economy. The managers can turn defensive or opportunistic.
Controls and limits
Unhedged shorts are capped at 25% of net assets, option premiums at 20%, and stock lending at 20%. Hedging, meaning a trade that offsets a possible loss elsewhere, can cover up to 100% of equity exposure.
It may also write covered calls: holding a share and selling someone the right to buy it at a set price.
Liquidity and costs
Redemption money goes out within three working days. Estimated yearly expenses are up to 2.10% of average daily net assets. Sundaram bears the NFO expenses. Funds must be invested as planned within 30 business days of allotment.
Potential benefits of this SIF strategy
Potential benefit | Why does it matter? |
Access beyond the top 100 | Companies ranked 101 to 750 sit outside large-cap funds. |
Room to go short | The managers can act on a negative view, not only a positive one. |
Focused portfolio | About 25 to 40 stocks means each pick carries weight. |
Several tools | Hedges, covered calls and pair trades give the managers options. |
Wider spread | Debt and overseas holdings let the fund diversify beyond Indian equity. |
Things to know before you invest
Point | What it means |
Entry ticket | Your total across Select SIF strategies must stay at ₹10 lakh or more. If your own redemption breaks this, units are frozen and you get 30 days to top up. If a NAV fall breaks it, you can only redeem the whole holding. |
Exit load | 1% applies if you leave within a year of allotment. |
Smaller companies | Ex-top 100 stocks usually trade less than large caps, and prices can move sharply. |
Derivatives | Short positions and options can magnify gains and losses. Covered calls cap the gain on the underlying share. |
New strategy | There is no performance history yet. Trustees may also limit or suspend redemptions in certain situations. |
Who may consider this fund?
Investor type | Why it may fit |
Holders of large-cap-heavy portfolios | A Bengaluru professional with mostly Nifty 50 funds may want a separate slot for mid and small companies. |
Business owners with surplus cash | An Ahmedabad trader with ₹10 lakh idle and a goal six to eight years away matches the long-term aim. |
Investors at ease with active calls | Those who accept results hinge on the managers’ long and short picks. |
Who may not find it suitable?
Investor type | Why it may not fit |
Anyone with less than ₹10 lakh to commit | The threshold applies at PAN level (₹1 lakh if accredited). |
Money needed within a year | The 1% exit load applies to exits in year one. |
Plain-vanilla seekers | The fund is active, uses derivatives and can hold short positions. |
How it compares with traditional investment options
Option | Return potential | Liquidity | Horizon | Suitable investor |
Fixed deposit | Fixed rate set at booking | Early exit may carry a penalty | Fixed term | Those wanting certainty |
Debt mutual fund | Linked to interest rates | Usually daily | Short to medium | Short-term parking |
Hybrid fund | Mix of equity and debt returns | Usually daily | Medium to long | Those wanting one blend |
Equity mutual fund | Linked to stock markets | Usually daily | Long | Long-term goal holders |
This fund | Linked to long and short stock calls | Daily; 1% exit load in year one | Long | ₹10 lakh or more, long term |
Select Equity Ex-Top 100 Long-Short Fund review by Zenith Finserve
This fund fills a narrow slot. It suits someone who already holds core large-cap or flexi-cap funds and has ₹10 lakh or more for a satellite holding in mid and small companies, with a goal at least five years away and no need for the money in year one. It adds style diversification, not a replacement for core holdings.
The short book sets it apart from a plain mid and small-cap fund. With up to 25% of net assets in unhedged shorts, outcomes depend on how well the managers pick both strong and weak names. There is no track record yet. This paragraph is our interpretation, not an offer document fact.
Before investing, check three things. Does ₹10 lakh leave your emergency fund and near-term goals intact? Are you comfortable with derivatives? Does it overlap with what you hold? We neither recommend nor rate the fund.
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.
See our SIF advisory, mutual fund advisory and investment planning pages, or read about us.
Similar NFOs on Zenith
- DynaSIF Equity Ex-Top 100 Long-Short Fund by 360 ONE Mutual Fund: the same Ex-top 100 long-short category.
- Summit Equity Long-Short Fund by Invesco: an equity long-short SIF with limited short positions.
- Eminence Hybrid Long-Short Fund by AlphaGrep: blends equity, arbitrage and fixed income.
New to launches? See our NFO guide.
Frequently asked questions
1. What is the Select Equity Ex-Top 100 Long-Short Fund?
An open-ended Sundaram SIF strategy that mainly buys companies outside the top 100 and can take limited short positions.
2. When does the Select Equity Ex-Top 100 Long-Short Fund NFO open and close?
It opens on 21-10-2026, closes on 04-11-2026 and reopens on 11-11-2026.
3. What is the minimum investment?
₹10,00,000 at PAN level across Select SIF strategies. Accredited investors can start with ₹1,00,000.
4. Is Select Equity Ex-Top 100 Long-Short Fund NFO good to invest in?
We neither recommend nor rate it. Fit depends on your horizon, the ₹10 lakh ticket and comfort with derivatives.
5. What does the fund invest in?
At least 65% in Ex-top 100 equity; up to 35% each in other equity and debt; up to 10% in InvITs; up to 30% overseas.
6. What does Ex-top 100 mean?
Every listed company except the 100 largest by market value.
7. How much can the fund short?
Up to 25% of net assets, through derivatives, unhedged.
8. What is the exit load?
1% within one year of allotment, nil after.
9. Can I start an SIP?
Existing investors who meet the ₹10 lakh threshold can, from ₹5,000 a month for at least 6 instalments.
10. Who manages the fund?
Madanagopal Ramu, with Sandeep Agarwal for fixed income and Shalav Saket for overseas investments.
