Indian Markets Might Soon See A Slew Of SIFs — All You Should Know About This New Asset Class

After Axis and Nippon AMC's recruitments before they launch their SIF, Edelweiss AMC said that it had received SEBI approval for its SIF on Thursday.

Debt Long-Short Fund

• Investment in debt instruments across duration, including unhedged short exposure through exchange traded debt derivative instruments.

Sectoral Debt Long-Short Fund

• Investment in debt instruments of at least two sectors, with maximum investment of 75% in a single sector.

• Maximum short exposure through unhedged derivative positions in debt instruments: 25%.

Active Asset Allocator Long-Short Fund

• Dynamic investment across following asset classes: Equity, debt, equity and debt derivatives, REITs/InVITs and commodity derivatives.

• Maximum short exposure through unhedged derivative positions in equity and debt instruments: 25%.

Hybrid Long-Short Fund

• Minimum investment in equity and equity related instruments: 25%.

• Minimum investment in debt instruments: 25%.

• Maximum short exposure through unhedged derivative positions in equity and debt instruments: 25%.

A registered mutual fund may establish an SIF, provided they meet the SEBI eligibility criteria pertaining to track record, assets under management and/or requisite appointments.

The subscription and redemption frequency of investment strategy under SIF may be based on the nature of investments, including daily, weekly, fortnightly, monthly, quarterly, annually, fixed maturity, or other suitable intervals.

The AMC shall ensure that the SIF has distinct identification, separate from that of the mutual fund, to maintain clear differentiation between the offerings of the SIF and that of a mutual fund.