New SIF regulations pave way for a new frontier in the investment space: Radhika Gupta

SEBI has introduced new regulations for Specialized Investment Funds (SIF), and Radhika Gupta, CEO of Edelweiss Mutual Fund, believes this marks a significant milestone in the investment landscape. She sees it as an opportunity for experienced asset managers to provide innovative solutions across seven categories to sophisticated investors.

“I am very happy to see the new Specified Investment Fund (SIF) regulations from SEBI. This marks a new frontier in the investment space, giving experienced asset managers the opportunity to offer innovative new solutions in 7 categories to discerning investors,” She posted on social media.



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This is a way for the asset managers to stretch their platform and capabilities, and with the right guardrails and communication has the potential to be a game-changer, she adds.

The CEO further hinted at product launches, after a user asked for the future plans of the fund house in this investment space.

On Thursday, Sebi issued a circular for the regulations of Specialized Investment Funds (SIF) and mentioned that this circular will come into force with effect from April 1.

The new asset class which is in between the mutual funds and portfolio management services (PMS) will have investment strategies in equity, debt and hybrid categories and will accept the investments of Rs 10 lakh or more across all investment strategies.

To avoid proliferation of investment strategies and in line with the approach followed for categorization of MF schemes, only one investment strategy shall be permitted to be launched under each of the mentioned categories.

The Minimum Investment Threshold of Rs 10 lakh shall apply exclusively to investments under SIF and shall not include investments made by the investor in regular MF schemes of the same AMC.

The AMC may offer systematic investment options such as Systematic Investment Plan (‘SIP’), Systematic Withdrawal Plan (‘SWP’) and Systematic Transfer Plan (‘STP’) for investment strategies launched under the SIF, while ensuring compliance with the Minimum Investment threshold.

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An investment strategy under SIF shall not invest more than 20% of its NAV in debt and money market securities issued by a single issuer and rated AAA or 16% in securities rated AA or 12% in securities rated A and below. These instrument limits may be extended by up to 5% of the NAV of investment strategy with prior approval of trustees of MF and board of AMC.

An investment strategy under the SIF shall not invest more than 25% of its NAV in debt and money market securities of a particular sector.

In December, the market regulator notified about a new asset class between portfolio management and mutual funds.

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