The SIF is a new category of investment product introduced by SEBI to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS).
Edelweiss Mutual Fund has announced the launch of Altiva Hybrid Long-Short Fund, which will be the country’s first hybrid long-short Specialized Investment Fund (SIF). The new fund offer will open for subscription from October 1 to October 15, 2025.
According to a company release, the Altiva Hybrid Long-Short Fund aims to provide consistent, income-oriented returns by combining equity arbitrage and high-quality fixed income with selective opportunities in derivatives and special situations such as IPOs, buybacks, open offers, and mergers. This multi-strategy approach is designed to deliver stable outcomes across varying market conditions. The fund allows daily subscriptions with redemptions available twice a week. The minimum investment is Rs 10 lakh, and investors can participate through lump sum, SIP, STP, or SWP options. Its tax-efficient framework offers long-term capital gains taxation at 12.5 percent after a 24-month holding period, making it potentially more attractive than Category III AIFs.
In May this year, Edelweiss Asset Management Limited announced that they had received in-person approval from the Securities and Exchange Board of India (SEBI) for its entry into Specialized Investment Funds (SIFs).
Other mutual funds are also on their way to launch their first products in this category. In a note to investors, Quant Mutual Fund’s monthly newsletter, Sandeep Tandon had also announced that the MF will launch its first SIF product, the qsif Equity Long Short Fund, this September. Union Mutual Fund also hinted at the launch of their first product this November.
The SIF is a new category of investment product introduced by SEBI to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS).
The regulator believes that while over the years, India’s financial market has witnessed an expansion in investment products with varying degrees of risk, complexity, and regulatory oversight, a gap exists between mutual funds and PMS. SIFs aim to provide a middle ground, offering portfolio flexibility while ensuring regulatory compliance and investor protection.
The minimum investment thresholds of SIFs is lower at Rs 10 lakh thereby drawing in mass affluent investors who may be seeking more than just traditional mutual fund products.
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