Shvash Tantra

The Securities and Exchange Board of India (SEBI) has introduced a new category of investment products known as Specialized Investment Funds (SIFs). They aim to bridge the gap between Portfolio Management Services (PMS) and Mutual Funds (MFs) by providing investors with enhanced freedom in their investments while maintaining regulatory norms. Effective from April 1, 2025, the new framework has been designed to provide investors with a broader list of options of varying risk-return profiles. Highlights of the Regulatory Framework 1. Eligibility Criteria for SIFs For Mutual Funds intending to create an SIF, they should satisfy one of the following: Route 1 - Established Track Record: They should have been in business for a minimum of three years with an average Assets Under Management (AUM) of ₹10,000 crores. There should be no regulatory proceedings against the sponsor or Asset Management Company (AMC) for the past three years. Route 2 - Alternative Route: They should have a Chief Inves...

The Securities and Exchange Board of India (SEBI) has introduced Specialised Investment Funds (SIFs) , a new asset class designed to bridge the gap between traditional mutual funds and Portfolio Management Services (PMS). This initiative aims to provide sophisticated investors with more personalized and flexible investment options, accommodating higher risk appetites and diverse strategies. Key Features of SIFs: Minimum Investment Requirement: Investors must commit a minimum of ₹10 lakh to participate in SIFs, positioning them between mutual funds and PMS in terms of accessibility and investment scale. Flexible Investment Strategies: SIFs offer fund managers the latitude to employ a broad spectrum of investment strategies, ranging from equity to debt instruments, and including complex approaches like long-short equity positions. This flexibility enables managers to tailor portfolios to specific investor needs and market conditions. Regulatory Oversight and Restrictions: While SIFs p...