ICICI Prudential Asset Management has launched two new investment strategies – ISIF Active Asset Allocator Long-Short Fund and ISIF Equity Long-Short Fund. The New Fund Offer (NFO) for both the investment strategies opened on May 19 and will close on June 2, 2026. Both of these strategies aim to provide a more adaptable portfolio construction framework with long-short positioning and derivatives-based risk management.
S Naren, Executive Director and CIO, ICICI Prudential AMC, said, there are rapid changes in asset classes, sectors, styles and market caps in the markets. In such environments, static allocation approaches may not always suffice. Through the ISIF platform we aim to provide investors with more flexible strategies that can dynamically adapt to changing market conditions using asset allocation frameworks, derivatives and long-short positioning.
iSIF Active Asset Allocator Long-Short Fund
iSIF Active Asset Allocator Long-Short Fund is an interval investment strategy that invests dynamically across equity, debt, equity and debt derivatives, InvITs and commodity derivatives. This also includes limited short exposure on instruments permitted through derivatives.
investment strategy framework
This investment strategy attempts to actively change allocations based on different asset valuations, macroeconomic conditions and risk-adjusted opportunities. This framework combines equity exposure for long-term capital growth, debt allocation for stability and carry opportunities, commodity for diversification and inflation protection and InvIT for additional diversification. The investment process uses a specialized asset allocation model, incorporating valuation indicators, technical signals and macro scenarios, to determine allocation across different asset classes. This strategy follows the principle of “buy low, sell high”. That is, when valuations are attractive, it increases allocation to equity and when the market becomes expensive, it reduces risk. The strategy may also use derivatives-based long-short positioning with unhedged short exposure up to 25% of net assets through permitted instruments.
How much return will you get?
iSIF Equity Long-Short Fund is an open-ended equity investment strategy that invests in listed equities and equity-related instruments, including limited short exposure to equities through derivative instruments. The objective of this investment strategy is to identify and invest in potential opportunities across market capitalisation, sectors and styles. This investment strategy will cover more than 650 companies to take advantage of market opportunities. Stock Selection: This investment strategy will select stocks as per appropriate valuation and growth prospects based on various factors like business fundamentals, industry structure, quality of management, key income factors etc. This investment strategy will attract long term calculation tax (LTCG) rate of 12.5% and its holding period is 12 months.
Investment will have to be made in both the schemes in this way
Minimum investment: ₹10,00,000 (plus in multiples of ₹1) for first-time investors in iSIF. ₹10,000 (plus in multiples of ₹1) for existing investors adhering to the minimum investment limit. Regular and Direct (Growth Option). However, the benchmarks of both will be different. The benchmark of Active Asset Allocator Long Short will be 50% Nifty 500 TRI + 40% Nifty Composite Debt Index + 7% Domestic Gold Price + 3% Domestic Silver Price. Benchmark of ISIF Equity Long-Short Fund: ISIF Equity Long-Short Fund – Will be Nifty 500 TRI.
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