Specialised Investment Fund (SIFs), which were launched in mid-September to attract investors with moderate risk appetite, has already seen 20,779 folios at the end of December, according to data from the Association of Mutual Funds in India (Amfi). In fact, since October, the number of folios have doubled.
The Securities & Exchange Board of India (Sebi) had allowed mutual funds to launch a Specialised Investment Fund (SIF) in February under which they are permitted to launch long-short funds across categories for wealthier investors effective April 1. This was done to bridge the gap between mutual funds and PMS in terms of portfolio flexibility.
Investing in SIFs require a minimum investment of Rs 10 lakh per investor across all strategies offered by a single AMC.
What did senior vice president at Edelweiss Mutual Fund say?
Niranjan Avasthi, senior vice president at Edelweiss Mutual Fund, said “Our SIF has seen very good traction as there was a gap in the existing products.” He noted that the initial launches by most AMCs were in the hybrid space due to the volatility in the market as it settles Edelweiss will come up with equity facing strategies.
“Currently, we are expanding the hybrid long-short strategy,” he said and added that the early launches in this segment will give customers comfort in terms of track record.
Quant MF had launched the first SIF in the equity long-short category on September 19. The total assets under management under this segment have risen from Rs 2,004.56 crore at the end of October to Rs 4,892.32 crore at December end.
A total of seven schemes launched as of 2025 end, garnered average Rs 409 crore at the time of NFO as against average Rs 204 crore from 65 NFOs in traditional mutual funds during the Oct-Dec quarter. Quant’s QSIF has launched the most three of the seven categories allowed by Sebi.
SBI’s Magnum Hybrid Long-Short raised the most Rs 1,127.6 crores followed by Edelweiss Altiva Hybrid Long-Short Rs 613 crore.
Niranjan Avasthi, senior vice president at Edelweiss Mutual Funds said, “Our SIF has seen very good traction as there was a gap in the existing products.” He noted that the initial launches by most AMCs were in the hybrid space due to the volatility in the market as it settles Edelweiss will come up with equity facing strategies.
“Currently, we are expanding the hybrid long-short strategy,” he said and added that early launches in this segment will give customers comfort in terms of track record.
Earlier this month, Bandhan Mutual Fund (MF), under Arudha brand, announced its SIF entry with a hybrid long-short fund and ICICI Prudential MF’s iSIF as well as 360 ONE MF’s Dyna SIF have filed the draft documents of their launches with the Securities and Exchange Board of India (Sebi).
Currently AIF and PMS centric Nuvama Asset Management Company, which had received the Sebi nod for mutual fund business in October, is also planning to launch its first product in this space. However, some of the large mutual funds are building their capabilities before the launch.
Chirag Setalvad, head of equities at HDFC AMC said, “We are a very long-term player so we will do it gradually and there are products we can do in SIFs because the construct is interesting.” This is going to be a smaller business compared to a traditional mutual fund business, he noted.
Aditya Birla Sun Life Targets Fixed Income and Equity
A Balasubramanian, CEO of Aditya Birla Sun Life Aditya Birla Sun Life AMC told FE that the company is targeting a specialized investment fund launch by the March quarter under ‘Apex’ brand and is looking at one long-short equity and opportunities like low-credit and arbitrage plus in the fixed income space.
“We are looking for a senior person and one person with a derivatives dealer understanding,” he had said.
Nippon India Mutual Fund, which had hired Andrew Holland as the head of the newly introduced asset class — specialised investment funds (SIF) in April is yet to announce a fund launch. Holland had said the launches will be similar to the absolute return and enhanced returns funds Holland used to manage at Avendus Capital.