ICICI Prudential Asset Management has launched two new investment strategies under its ISIF platform.
The company announced the launch on Tuesday, and the New Fund Offer (NFO) for both schemes is now open for investors.
The subscription window for these two strategies will remain open till June 2.
What Is the Main Goal of These Funds?
The company says both investment strategies are designed to create a more flexible investment portfolio.
These funds will use long-short strategies and derivatives-based risk management to adjust according to changing market conditions.
According to S. Naren, markets are currently witnessing fast changes across sectors, asset classes, market caps, and investment styles. Because of this, fixed or static investment methods may not always work effectively.
Through the ISIF platform, the company wants to offer strategies that can actively respond to market changes using asset allocation models, derivatives, and long-short positioning.
Minimum Investment Details
First-time investors can start investing in these strategies with a minimum amount of ₹10 lakh.
After the initial investment:
Existing investors can invest a minimum of ₹10,000
Additional investments can be made in multiples of ₹1
iSIF Active Asset Allocator Long-Short Fund
The iSIF Active Asset Allocator Long-Short Fund is an interval-based investment strategy. It invests across different asset classes including:
Equity
Debt
Commodity derivatives
InvITs
Equity and debt derivatives
The strategy also allows limited short exposure through derivatives.
How This Strategy Works
This fund aims to actively change asset allocation based on:
Market valuations
Macroeconomic conditions
Risk-adjusted opportunities
The strategy focuses on:
Equity for long-term growth
Debt for stability
Commodities for diversification and inflation protection
InvITs for additional portfolio balance
The fund uses a special asset allocation model that studies valuation indicators, technical signals, and macroeconomic scenarios before deciding where to invest.
The strategy follows the “buy low, sell high” principle. It increases equity exposure when valuations are attractive and reduces risk when markets become expensive.
The fund can also use derivatives-based long-short positions with unhedged short exposure of up to 25% of net assets.
iSIF Equity Long-Short Fund
The iSIF Equity Long-Short Fund is an open-ended equity investment strategy. It mainly invests in listed equities and equity-related instruments while also taking limited short exposure through derivatives.
Focus on Large Investment Opportunities
This strategy aims to identify opportunities across:
Different market capitalizations
Sectors
Investment styles
The fund plans to track and invest across more than 650 companies to capture market opportunities.
Stock Selection Method
The strategy will select stocks based on:
Business fundamentals
Industry structure
Management quality
Growth potential
Earnings drivers
Reasonable valuations
The investment strategy will attract a long-term capital gains (LTCG) tax rate of 12.5% and comes with a holding period of 12 months.
