New fund offer: 2 SIFs to open for subscription on April 27. Check key details

Two new SIFs will open for subscription on April 27, as fund houses continue to expand their product offerings. Here’s a detailed break-up (Source: ACE MF).

The two SIFs will follow different equity-oriented strategies, one an equity long-short fund and the other a sector rotation long-short fund. As per Sebi norms, equity-oriented SIF strategies include equity long-short, equity ex-top 100 long-short, and sector rotation long-short.

In an Equity Long-Short Fund, at least 80% is invested in equity and equity-related instruments, while short exposure through unhedged derivatives is capped at 25%. In an Equity Ex-Top 100 Long-Short Fund, a minimum of 65% is invested in stocks outside the top 100 by market capitalisation, with short exposure (excluding large caps) limited to 25%.
In a Sector Rotation Long-Short Fund, at least 80% is invested across a maximum of four sectors, while short exposure via unhedged derivatives is capped at 25%.

This SIF from Tata Mutual Fund will open on April 27 and close on May 11. The minimum investment amount is Rs 10 lakh.

This SIF from Quant Mutual Fund will open on April 27 and close on May 11, with a minimum investment of Rs 10 lakh.

Experts say these SIFs are better suited for HNIs rather than retail or first-time investors. Given their use of complex strategies, they require a strong understanding of markets and a higher risk appetite.