Context:
Several top PMS and AIF players are seeking mutual fund licences to enter the Specialised Investment Funds (SIFs) segment. SIFs are newly introduced MF structures that combine the flexibility of PMS and AIFs with the tax and ticket-size advantages of mutual funds.
Recent MF Licence Applicants (Last 3 Months)
- Nuvama Wealth Management
- Marcellus Investment Managers
- Wealth First Portfolio Managers
- ASK Investment Managers (has received in-principle approval from SEBI)
Motivation for Entry into SIFs
- SIFs are designed to attract high-net-worth investors looking for flexible investment strategies with tax benefits
- They offer a minimum investment size of ₹10 lakh, compared to ₹50 lakh for PMS and ₹1 crore for AIFs
- Taxation only occurs at redemption, similar to mutual funds — unlike PMS (taxed at every trade) or Category III AIFs (taxed at fund level)
Key Strategies Allowed Under SIF Framework
- Equity-Oriented Strategies
- Equity long-short funds: Minimum 80% in equities, with a 25% short limit
- Ex-top 100 long-short funds: Exclude large-caps, maintain 65% equity exposure
- Sector rotation funds: Focus on max four sectors at a time
- Debt-Oriented Hybrid Strategies
- Blend of fixed income and other hybrid approaches, offering diversified returns with managed risk
Current Applicants for MF Licences
Applicants with Partial SEBI Approvals
- Jio BlackRock
- Pantomath Capital Advisors
- Capitalmind Financial Services
- ASK Investment Managers
