360 ONE Mutual Fund Launches "DynaSIF Equity Long-Short Fund"

360 ONE Mutual Fund has announced the launch of a new fund called the DynaSIF Equity Long-Short Fund. This is the first scheme under their new "DynaSIF" platform.

The New Fund Offer (NFO) opens on February 6, 2026, and closes on February 20, 2026.

This fund is different from a regular mutual fund because it falls under the category of Specialised Investment Funds (SIFs). Here is a simple breakdown of what this fund does and who it is for.

What is a "Long-Short" Fund?

In the stock market, there are two main ways to make money:

1. Going Long: Buying a stock expecting its price to go up. (Most mutual funds do this).
2. Going Short: Betting that a stock price will go down.

The DynaSIF Equity Long-Short Fund does both.

• It buys stocks of strong companies (Long positions).
• It takes "short" positions in companies it believes are weak or overvalued (using derivatives).

The Goal: By doing both, the fund aims to generate returns in all market conditions, whether the market is going up (Bull), down (Bear), or staying flat (Sideways).

Key Features of the Strategy

• Equity Allocation: The fund invests a minimum of 80% in equities and equity derivatives.
• Short Exposure: It has the flexibility to take limited short exposure (up to 25%) through equity derivatives.
• Derivatives: It uses derivatives not just for safety (hedging) but also to generate extra income (yields) through strategies like "covered calls."
• Flexibility: The fund is "agnostic," meaning it can invest in any sector, any company size (market cap), and any style.

What is a Specialised Investment Fund (SIF)?

This fund operates under the SIF framework. Think of it as a middle ground between a regular Mutual Fund and a high-end Alternative Investment Fund (AIF).

• Like a Mutual Fund: It offers transparency, tax benefits (Equity Taxation), and is easy to operate.
• Like an AIF: It has flexible strategies (like shorting stocks) that regular mutual funds usually don't use aggressively.

Who Manages the Fund?

The fund is managed by Mr. Harsh Agarwal, who has nearly 20 years of experience in long-short strategies. He was formerly the Head of Alternative Strategies at Tata AMC.

He is backed by Mr. Anup Maheshwari (CIO), who has over 30 years of investment experience.

Important Details for Investors

This fund is not for everyone. It has a higher entry barrier than regular funds.

• Minimum Investment: ₹10,00,000 (₹10 Lakhs).
  • Note: For "Accredited Investors," the minimum is ₹1 Lakh.
• Benchmark: BSE 500 TRI.
• Exit Load: 0.5% if redeemed within 3 months. Nil after that.
• Taxation: It follows Equity Taxation rules.

Conclusion

The DynaSIF Equity Long-Short Fund is designed for sophisticated investors who want a portfolio that can potentially perform even when the market is falling or flat. By combining long-term stock picking with tactical shorting, it offers a different approach to wealth creation compared to traditional "buy and hold" mutual funds.

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