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Specialised Investment Fund
Specialised Investment Funds (SIFs), newly introduced by SEBI, witness rapid adoption with assets under management crossing ₹13,814 crore. The product operates under an SEBI framework introduced through amendments to the SEBI (Mutual Funds) Regulations, 1996.
Specialised Investment Fund (SIF):
| Dimension | Key Details |
|---|---|
| Regulator | SIF is introduced by the Securities and Exchange Board of India (SEBI). |
| Positioning | SIF provides for bridging the gap between regular mutual funds and high-ticket Portfolio Management Services (PMS). |
| Legal basis | The SIF framework is introduced through amendments to the SEBI (Mutual Funds) Regulations, 1996. |
| Minimum investment threshold | The minimum investment in a SIF is ₹10 lakh per investor. |
| SIP and SWP | The fund house can offer a systematic investment plan (SIP) and systematic withdrawal plan (SWP), but it must comply with the minimum threshold amount. |
| Fund structure | The SIF can be open-ended, closed-ended, or interval-based. |
| Investment strategy categories | Categories comprise equity-oriented strategies; debt-oriented strategies; and hybrid strategies. |
| Equity-oriented strategy examples | Equity-oriented strategies comprise equity long-short funds, equity ex-top 100 long-short funds, and sector rotation longshort funds. |
| Debt-oriented strategy examples | Debt-oriented strategies comprise debt long-short funds and sectoral debt long-short funds. |
| Hybrid strategy examples | Hybrid strategies comprise active asset allocator long-short funds and hybrid long-short funds. |
| Strategy restriction | The current framework allows only one strategy per category per SIF. |
| Eligibility for AMCs to establish SIFs | Eligibility criteria comprise two routes: operation for at least 3 years with average AUM of ₹10,000 crore immediately preceding the 3 years; or appointment of a CIO with at least 10 years of experience managing assets of ₹5,000 crore or more, along with an additional fund manager having at least 3 years of experience managing an AUM of ₹500 crore. |