360 One Multi Strategy Fund

The 360 ONE Multi Strategy Fund is a Category III AIF built around three listed-equity sleeves: multicap, large & mid-cap and small-cap. Instead of relying on a single market-cap segment, the strategy combines different equity approaches within one portfolio and allows allocation to change as market conditions, valuations and strategy performance evolve.

The fund was formerly known as the IIFL Multi Strategy Fund and focuses on long-term capital appreciation through equity and equity-related securities. Its investment approach combines in-house research with external research inputs, with the final portfolio constructed across market-cap segments. The stated portfolio size is around 40–50 stocks, while the small-cap sleeve follows a more focused 12–18-stock approach.

What Is the 360 ONE Multi Strategy Fund?

The 360 ONE Multi Strategy Fund AIF is a 360 ONE Multi Strategy Fund Category III AIF that combines three equity strategies within one investment structure:

• Multicap Strategy
• Large & Mid-Cap Strategy
• Small-Cap Strategy

The idea is fairly straightforward: instead of committing the entire portfolio to one market-cap segment, the investment team can distribute capital across different strategies and rebalance those allocations when its research or macro view changes.

The 360 ONE Multi Strategy AIF follows a research-led approach to stock selection. It looks at business quality, management alignment, earnings growth, competitive positioning, cash flows and valuation rather than simply allocating according to an index.

The fund's stated benchmark is the S&P BSE 500, while the minimum investment is ₹1 crore. The strategy is designed for investors who understand the risks associated with concentrated listed-equity exposure, including small-cap and market-cycle risks.

360 ONE Multi Strategy Fund: Fund Snapshot & Key Terms

The fund was reported as ongoing, with its AUM at ₹103.57 crore as of March 31, 2025 and 31 portfolio stocks at that date. Portfolio numbers can change with subsequent investments, exits and rebalancing.

360 ONE Multi Strategy Fund Investment Strategy

The 360 ONE Multi Strategy Fund investment strategy brings together three distinct equity sleeves. Each has its own research process, but the final portfolio is managed as one integrated strategy.

Multicap Strategy

The multicap sleeve focuses on companies with a combination of business quality, growth potential, governance and valuation discipline.

The stock-selection process considers:

• Clear and sustainable business models
• Promoter stake and alignment of interests
• Corporate governance and management quality
• Position relative to industry peers
• Revenue and earnings growth
• Return on equity and return on invested capital
• Debt levels and earnings volatility
• Valuation and margin of safety

The strategy follows a GARP — growth at reasonable price philosophy. The research process looks for companies capable of delivering sustained growth while avoiding situations where the market price leaves little room for error.

The framework also considers a margin of safety between the estimated intrinsic value of a company and its purchase price.

Large & Mid-Cap Strategy

The large and mid-cap sleeve focuses on businesses with established operating histories, identifiable competitive advantages and sustainable growth drivers.

The research process covers five broad areas:

Business history: Historical performance is examined across different economic conditions, including periods of expansion and slowdown.

Business model: The team looks for businesses with an economic moat or competitive advantage that can support long-term profitability.

Volume growth: Rather than relying only on price-led growth, the research examines the structural drivers that could support volumes over the coming years.

Management interaction and channel checks: Management quality, decision-making and alignment with future growth are assessed alongside channel-level checks.

Valuation: Valuation remains an important part of portfolio construction, with attention paid to the relationship between business quality and the price being paid.

The approach also places emphasis on forensic book analysis, a data-driven research process and understanding the underlying economics of businesses.

Small-Cap Strategy and the 5S Framework

The small-cap sleeve uses a bottom-up stock-selection process and focuses on reasonably valued, growth-oriented companies.

The framework is built around five characteristics, known as the 5S framework:

1. Simplicity – The business model should be easy to understand.
2. Scalable – The company should have the ability to substantially expand its operations.
3. Sound – Promoters, management and corporate governance should meet the required quality standards.
4. Sustainable – The business should be capable of maintaining its competitive advantage.
5. Strong – The company should demonstrate robust return ratios.

The stated approach is to build a diversified small-cap sleeve of 12–18 stocks. Small-cap companies are defined in the strategy material as companies ranked from the 251st position onwards by market capitalisation.

Dynamic Allocation, Portfolio Construction and Rebalancing

A key feature of the strategy is that the three sleeves are not necessarily treated as fixed allocations.

The investment team evaluates market conditions, internal research and the performance of the underlying strategies before modifying the portfolio mix. The stated framework permits allocation to an individual theme to range from 20% to 40%, while the portfolio is periodically reviewed and rebalanced.

The portfolio construction process combines:

• Stocks covered by the 360 ONE research team
• Research ideas received from selected advisors
• Internal evaluation by the investment team
• Market-cap diversification
• Macro-economic assessment
• Ongoing portfolio monitoring

The stated objective is to bring these research ideas together into a portfolio of approximately 40–50 stocks. This makes the strategy different from a simple three-fund allocation where each segment is managed independently.

360 ONE Multi Strategy Fund Portfolio, Market-Cap and Sector Allocation

The portfolio can move across market-cap segments as the investment team changes its view on the three strategies.

The broad sector exposure identified in the strategy material includes:

These are strategy-level areas of focus rather than permanent sector allocations. The 360 ONE Multi Strategy Fund portfolio and 360 ONE Multi Strategy Fund holdings can change as the team buys, sells and rebalances individual positions.

For this reason, investors reviewing the 360 ONE Multi Strategy Fund market cap allocation or 360 ONE Multi Strategy Fund sector allocation should refer to the latest portfolio disclosure rather than relying on an older snapshot.

360 ONE Multi Strategy Fund Performance vs Benchmark

The fund uses the S&P BSE 500 as its benchmark. Performance should therefore be assessed against both the fund's own return profile and the corresponding benchmark over comparable periods.

The 360 ONE Multi Strategy Fund performance can vary materially across market cycles because the portfolio combines multicap, large/mid-cap and small-cap exposures. The small-cap component, in particular, can introduce greater volatility during periods of risk aversion.

As with any equity AIF, historical 360 ONE Multi Strategy Fund returns should not be treated as an indication of future performance. Investors should review performance alongside the applicable period, portfolio positioning and market environment.

360 ONE Multi Strategy Fund Minimum Investment, Fees and Fund Terms

The 360 ONE Multi Strategy Fund minimum investment is ₹1 crore. The fund follows a commitment and drawdown structure rather than requiring the entire commitment to be invested upfront.

The initial drawdown is stated at 25% of the commitment amount. Subsequent drawdowns are stated at 15% of the commitment, payable bimonthly through an auto-debit arrangement using an NACH mandate.

Minimum Investment

₹1 crore

Drawdown Structure

• Initial drawdown: 25%
• Subsequent drawdown: 15%
• Frequency: Bimonthly
• Mode: Mandatory NACH auto-debit

Fees

The exact 360 ONE Multi Strategy Fund fees, including management fee, hurdle and carried interest, should be taken from the latest applicable PPM or approved fund documentation before investment. The available material does not provide enough verified current information to state these terms confidently.

The same principle applies to 360 ONE Multi Strategy Fund redemption and liquidity terms. Different publicly available descriptions have presented differing liquidity information, so investors should rely on the latest scheme documentation for the applicable exit and redemption provisions.

Key Risks of 360 ONE Multi Strategy Fund

The strategy carries the risks associated with a listed-equity Category III AIF.

Equity-market risk

The value of the portfolio can decline when equity markets fall or when individual companies experience deterioration in earnings, valuations or business conditions.

Small-cap risk

The small-cap sleeve can experience higher volatility, wider price movements and greater sensitivity to liquidity conditions than larger companies.

Allocation risk

Dynamic allocation can benefit from changing market conditions, but an allocation decision can also prove incorrect. Increasing exposure to a particular strategy at the wrong stage of the cycle can affect overall portfolio returns.

Concentration risk

Although the strategy is diversified across themes and market caps, a portfolio of around 40–50 stocks still carries company-specific and sector-specific concentration risk.

Valuation risk

A high-quality company can still deliver weak investment returns if purchased at an excessive valuation.

Manager and research risk

The strategy relies heavily on the quality of fundamental research, stock selection, portfolio construction and allocation decisions.

Market-cycle risk

The three sleeves may behave differently across market cycles. A strategy that works well during one phase of the market may not perform similarly during another.

Who May Consider the 360 ONE Multi Strategy Fund?

The fund may be considered by sophisticated investors who:

• Can meet the ₹1 crore minimum commitment
• Have a multi-year investment horizon
• Understand Category III AIF structures
• Are comfortable with listed-equity market volatility
• Can tolerate small-cap exposure
• Understand that portfolio allocations can change
• Do not require predictable or assured returns
• Are comfortable with the risks associated with an actively managed equity portfolio

The strategy is better understood as a diversified, research-driven equity AIF rather than a fixed allocation product. Its appeal lies in combining multiple equity approaches within one portfolio while allowing the investment team to adjust exposure over time.