Franklin Templeton Sapphire Equity Long Short SIF: Capitalize on opportunities in all market conditions

Franklin Templeton has launched Sapphire Equity Long Short SIF NFO. Equity Long Short SIFs are specialized investment funds (SIF) which can take naked (unhedged) short positions. Minimum investment amount for SIFs is Rs 10 lakhs, which though is substantially higher compared to mutual funds, is significantly lower than the minimum investment amount of AIFs (minimum Rs 1 crore). From a tax standpoint, Sapphire Equity Long Short SIF will enjoy equity taxation. The NFO opened for subscription for 10^th April 2026 and will close on 24^th April 2026.

In this article, we will review Sapphire Equity Long Short SIF.

How short positions can reduce downside risks or generate returns in market drawdowns?

Sapphire Equity Long Short SIF - Long short Factor Model using quantitative strategy

Investment process of Sapphire Equity Long Short SIF

How will returns get potentially generated?

Back testing results (Optional) – Outperformed long only strategy and broad market index

Source: Franklin Templeton. Period: 30^th December 1999 to 31^st January 2026

Why invest in Sapphire Equity Long Short SIF?

• Long short strategy: Short positions can reduce downside risks in bear markets and periods of high volatility.


• Multi factor model: Mix of four factors, e.g. Quality, Value, Momentum and other signals can potentially cover different market cycles.


• Proprietary dedicated model: Proprietary factor diversification and comprehensive stock picking model.


• Data driven investment model: Quant based model developed by leveraging Franklin Templeton’s global expertise.


• Risk management: Focus on key risk parameters to maintain balance and aim to minimize downside risks.

Who can find Sapphire Equity Long Short SIF suitable?

• High Net Worth Individuals (HNIs): Investors seeking more advanced strategies than mutual funds but without the high entry barrier of PMS or AIFs.


• Sophisticated Investors with good understanding of financial markets and seeking exposure to long-short equity strategies with a minimum investment of Rs 10 lakhs.


• Investors with high-risk appetite and who understands market volatility.


• Investors who are comfortable with a long-short strategy and appetite for amplified volatility in certain market conditions.

Investors should consult with their financial advisors and eligible mutual fund distributors if Sapphire Equity Long Short SIF is suitable for their investment needs.