Source: BS
Context:
The Securities and Exchange Board of India (SEBI) has begun granting approvals for Specialised Investment Funds (SIFs), a new product category introduced in April 2025 to allow mutual funds (MFs) to deploy advanced strategies such as long-short equity and debt schemes.
Key Highlights:
- Launch Plans:
- Quant MF will launch qsif Equity Ex-Top 100 Long-Short Fund and qsif Equity Long-Short Fund in September 2025.
- At least one more AMC has received approval, and two others are close to securing it.
- About SIFs:
- Introduced by SEBI in April 2025.
- Allow complex investment strategies such as long-short equity and debt schemes.
- Minimum investment ticket size: ₹10 lakh.
- MFs require two clearances – a one-time licence and product-specific approvals.
- Distribution Bottleneck:
- Only ~300 distributors registered so far with AMFI.
- Distributors must clear NISM-Series-XIII certification exam, covering equity and currency derivatives.
- AMCs are conducting training sessions to expand distribution reach.
- Market Ecosystem:
- Exchange MF platforms and registrars expected to soon adapt for SIF transactions.
- Quant MF CEO Sandeep Tandon: Initial hiccups likely, but distributor strength growing.
- Scheme Strategy:
- qsif Equity Long-Short Fund → invests across market caps.
- qsif Equity Ex-Top 100 Long-Short Fund → focuses on midcaps & smallcaps.
- Derivatives long positions capped at 50%, unhedged short exposure up to 20%.
Significance:
- Marks the formal entry of SIFs into Indian capital markets.
- Expands product range beyond conventional equity and debt MFs.
- Aims to attract sophisticated investors seeking hedge fund–like strategies.
