360 ONE Mutual Fund announced the launch of the DynaSIF Equity Ex-Top 100 Long-Short Fund, an open-ended Equity SIF strategy designed to generate long-term capital appreciation through structural, cyclical, and tactical investing opportunities primarily in mid and smallcap equities. It also offers the flexibility to take limited short exposure to equities through derivatives of stocks other than largecap stocks.
The new fund offer or NFO of the fund is open for subscription and will close on June 19. The investment strategy will reopen for continuous sale and repurchase on June 29.
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India's mid and smallcap universe offers a compelling long-term opportunity, driven by strong earnings growth potential and improving corporate governance. Capturing it well requires a disciplined framework for picking quality stocks and active risk management, including the ability to take short positions through derivatives to generate alpha across market cycles.
The investment strategy aims to generate long-term capital appreciation through active management of mid and smallcap equities, with at least 65% of the portfolio allocated to companies outside the top 100 by market capitalisation. It seeks to minimise drawdowns during weak market phases by tactically hedging its equity positions with offsetting derivatives.
This investment strategy follows a multi-layered, dynamically calibrated approach. Its core allocation of 65%-100% is anchored in ex-top 100 mid and small-cap equities, including REITs. Up to 35% may be allocated opportunistically to large-cap equities when valuations are favourable, while up to 25% may be deployed in debt instruments such as T-Bills, money market securities and corporate bonds for defensive positioning.
The Equity Ex-Top 100 Long-Short strategy carries the ability to take unhedged short positions of up to 25% through derivatives exposure in mid & small cap, aimed at capturing returns from faltering businesses. Additionally, up to 20% may be invested in InvITs, providing exposure to alternative income from real assets.
“India's mid and smallcap universe is one of the most compelling investment destinations in the world right now: deep, diverse, and underpinned by structural growth drivers. But it is also a space that rewards discipline as much as conviction,” said Raghav Iyengar, CEO, 360 ONE Asset Management.
The DynaSIF Equity Ex-Top 100 Long-Short Fund is designed for investors who want meaningful participation in this opportunity, with a focus on managing risk across market cycles. At 360 ONE Asset Management Ltd, our commitment has always been to offer investors structures that are not just innovative but genuinely suited to how markets behave,” Iyengar further said.
The minimum amount for investment in this strategy is Rs 10 lakh and in multiples of Re 1 thereafter (Rs 1 lakh for accredited investors)
"Outside the top 100 universe, active management has more room to work and may create opportunities both on the long and the short side. A company growing its earnings fast can be underpriced. A company losing its edge can be overpriced. This fund is designed to seek out both. Long positions to ride companies gaining ground. Short positions to potentially benefit when businesses start to slip. Together, they aim to give the portfolio better risk-adjusted returns,” said Anup Maheshwari, Co-Founder & Chief Investment Officer, 360 ONE Asset Management.
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An exit load of 0.5% will be applicable, if redeemed within three months from the date of allotment and nil thereafter. The fund will be benchmarked against BSE 500 TRI and will be managed by Mayur Patel, Harsh Agarwal, Milan Mody and Pranav Mise (Co – Fund Manager).
DynaSIF had earlier launched the DynaSIF Equity Long-Short Fund on February 25, 2026 and the DynaSIF Active Asset Allocator Long-Short Fund on March 25, 2026, both under the DynaSIF platform. The DynaSIF Equity Ex-Top 100 Long-Short Fund is the third investment strategy on the platform.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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