Latest news with #SIFs
Economic Times
7 hours ago
- Business
- Economic Times
Sebi issues mechanism for monitoring of minimum investment threshold under SIF
Markets regulator Sebi on Tuesday came out with a mechanism for monitoring compliance with minimum investment threshold under Specialized Investment Funds (SIF). ADVERTISEMENT In case of any active breach of the threshold of Rs 10 lakh by an investor, including through transactions on stock exchanges or off-market transfers, Sebi said that all units of such investors held across investment strategies of the concerned SIF would be frozen for debit. Besides, a notice of 30 calendar days would be given to such investors to rebalance the investments in order to comply with the threshold. "In case an investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with minimum investment threshold," Sebi said in its circular. If the investor fails to rebalance the investments within a 30 calendar day period, the frozen units will be automatically redeemed by the AMC, at the applicable Net Asset Value. Specialized Investment Funds (SIFs), which allow mutual funds to launch advanced investment strategies as open-ended, close-ended and interval structures, will add depth and variety to the investment landscape of the country. For the purpose of SIF, the 'Active Breach' would mean fall in the aggregate value of an investor's total investment across all investment strategies of SIF, below the Minimum Investment Threshold of Rs 10 lakh, on account of any transactions -- redemption, transfer, sale -- initiated by the investor. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
8 hours ago
- Business
- Time of India
Sebi issues mechanism for monitoring of minimum investment threshold under SIF
Markets regulator Sebi on Tuesday came out with a mechanism for monitoring compliance with minimum investment threshold under Specialized Investment Funds (SIF). In case of any active breach of the threshold of Rs 10 lakh by an investor, including through transactions on stock exchanges or off-market transfers, Sebi said that all units of such investors held across investment strategies of the concerned SIF would be frozen for debit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses Indonesia (Prices May Surprise You) Container House | Search ads Search Now Besides, a notice of 30 calendar days would be given to such investors to rebalance the investments in order to comply with the threshold. "In case an investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with minimum investment threshold," Sebi said in its circular. If the investor fails to rebalance the investments within a 30 calendar day period, the frozen units will be automatically redeemed by the AMC, at the applicable Net Asset Value . Live Events Specialized Investment Funds (SIFs), which allow mutual funds to launch advanced investment strategies as open-ended, close-ended and interval structures, will add depth and variety to the investment landscape of the country. For the purpose of SIF, the 'Active Breach' would mean fall in the aggregate value of an investor's total investment across all investment strategies of SIF, below the Minimum Investment Threshold of Rs 10 lakh, on account of any transactions -- redemption, transfer, sale -- initiated by the investor.
News18
10 hours ago
- Business
- News18
Sebi issues mechanism for monitoring of minimum investment threshold under SIF
Agency: New Delhi, Jul 29 (PTI) Markets regulator Sebi on Tuesday came out with a mechanism for monitoring compliance with minimum investment threshold under Specialized Investment Funds (SIF). In case of any active breach of the threshold of Rs 10 lakh by an investor, including through transactions on stock exchanges or off-market transfers, Sebi said that all units of such investors held across investment strategies of the concerned SIF would be frozen for debit. Besides, a notice of 30 calendar days would be given to such investors to rebalance the investments in order to comply with the threshold. 'In case an investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with minimum investment threshold," Sebi said in its circular. If the investor fails to rebalance the investments within a 30 calendar day period, the frozen units will be automatically redeemed by the AMC, at the applicable Net Asset Value. Specialized Investment Funds (SIFs), which allow mutual funds to launch advanced investment strategies as open-ended, close-ended and interval structures, will add depth and variety to the investment landscape of the country. For the purpose of SIF, the 'Active Breach' would mean fall in the aggregate value of an investor's total investment across all investment strategies of SIF, below the Minimum Investment Threshold of Rs 10 lakh, on account of any transactions — redemption, transfer, sale — initiated by the investor. PTI SP HVA view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
2 days ago
- Business
- Time of India
Specialised Investment Funds can offer retail MF investors access to PMS-type investing but should you rush in?
With the nod of the Securities and Exchange Board of India ( Sebi ) earlier this year, a new investment vehicle—specialised investment fund (SIF)—is set to enter the market. Positioned as a middle ground between mutual funds and portfolio management services (PMS), SIFs offer greater risk-taking potential and more sophisticated strategies within a regulated framework, targeting so-called 'seasoned' investors who can commit Rs.10 lakh to start with. Many think only large investors have access to complex, often secret, and exotic investment strategies. However, with SIFs allowed to pursue differentiated strategies rather than regular mutual funds, retail mutual fund investors are showing strong interest — more so as a lot of them always wanted to try PMS but could not meet its high investment threshold of Rs.50 lakh. Several asset management companies (AMCs) are gearing up to enter this market. Some have already created new SIF-specific entities, as required by Sebi. However, we are yet to see the launch of individual strategies. To be sure, the SIF will have strategies, just like a mutual fund has schemes. The regulator also mandates this difference in nomenclature to help investors avoid confusion. 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It's too early to say. As a concept, SIF will compete with PMS — not just by virtue of its lower investment threshold but because it offers the same investor-friendly taxation as mutual funds, compared to the more complicated tax liabilities associated with PMS. Hence, the arrival of SIFs is a welcome development, despite some expected opposition to new financial products, as controlled financial innovation is vital for the evolving Indian market as a whole. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Short Explainer on Long-short Strategies: These aim to generate positive returns regardless of market direction by holding both long (buy) & short (sell) positions, either to hedge against losses, create a market-neutral portfolio, or adjust positions based on expected market movements. Fund managers may use these strategies to capitalise on relative performance between stocks or sectors, such as going long on undervalued stocks & shorting overvalued ones. However, these strategies require skillful decision-making, involve more active calls, & are harder to benchmark. For someone with Rs.10 lakh to invest, SIFs may seem exciting, like a ticket to an exclusive club earlier reserved only to big investors. But is rushing into this 'Mini-PMS' a smart move? For the sake of discussion, let's limit ourselves to only three equity-oriented strategies allowed for SIFs (others being two in debt, and another two in the hybrid space; refer to the table). One needs to think critically about what purpose SIF will serve in one's portfolio, which already includes equity mutual funds. Live Events Concentration can work both ways Even though equity SIFs will operate like equity funds and are allowed to have more concentrated portfolios, they have one distinct feature that permits greater risk-taking. Unlike mutual funds, SIFs can engage in derivatives (futures/options) without holding the underlying assets. This allows SIFs to take unhedged short positions, i.e. betting on price declines, up to 25% of the fund's value. While this capability provides more flexibility, it also introduces higher risks, as concentrated investments can amplify both profits and losses, and complex short-selling strategies demand precise market foresight by the fund manager. This flexibility does not guarantee that SIFs will deliver better results than mutual funds. Many investors may feel they have outgrown the simplicity of mutual funds, having stuck to them for years, and seek the sophisticated complexities usually available to larger portfolio holders. Combined with the financial or emotional restraints of investing a larger sum, the SIF may seem an appealing solution. No track record, yet However, SIFs are relatively new and lack a proven track record. Once launched, it would be essential to examine how fund managers approach them, as each may use unique investment strategies and portfolio management styles. For example, some might focus on aggressive short-selling or concentrated debt positions, while others may prioritise a market-neutral strategy, leading to varied risk and return profiles. Before committing to SIFs, investors must take time to understand these differences and assess how each fund's management aligns with their goals. It is better to wait and watch. Investing in something untested, no doubt, is glamorous, but it could also unnecessarily increase risks. So, consider SIFs later once they have established some credibility as a concept and have demonstrated desirable investment outcomes. This may sound boring, but the fact is that your existing, basic equity funds remain a super-product for most of your investment needs! If you still want to test the waters and have `10 lakh to spare, ensure you have the stomach for the risk that comes with SIFs. Just remember: in regulated markets, there's no magic formula or surefire way to get rich quick. The Author is FOUNDER, STABLEINVESTOR
Economic Times
2 days ago
- Business
- Economic Times
Specialised Investment Funds can offer retail MF investors access to PMS-type investing but should you rush in?
A new investment vehicle—specialised investment fund (SIF)—is set to enter the market. Synopsis Many investors may feel they have outgrown the simplicity of mutual funds, having stuck to them for years, and seek the sophisticated complexities usually available to larger portfolio holders. However, SIFs are relatively new and lack a proven track record. With the nod of the Securities and Exchange Board of India (Sebi) earlier this year, a new investment vehicle—specialised investment fund (SIF)—is set to enter the market. Positioned as a middle ground between mutual funds and portfolio management services (PMS), SIFs offer greater risk-taking potential and more sophisticated strategies within a regulated framework, targeting so-called 'seasoned' investors who can commit Rs.10 lakh to start with. ADVERTISEMENT Many think only large investors have access to complex, often secret, and exotic investment strategies. However, with SIFs allowed to pursue differentiated strategies rather than regular mutual funds, retail mutual fund investors are showing strong interest — more so as a lot of them always wanted to try PMS but could not meet its high investment threshold of Rs.50 lakh. Several asset management companies (AMCs) are gearing up to enter this market. Some have already created new SIF-specific entities, as required by Sebi. However, we are yet to see the launch of individual strategies. To be sure, the SIF will have strategies, just like a mutual fund has schemes. The regulator also mandates this difference in nomenclature to help investors avoid too early to say. As a concept, SIF will compete with PMS — not just by virtue of its lower investment threshold but because it offers the same investor-friendly taxation as mutual funds, compared to the more complicated tax liabilities associated with PMS. Hence, the arrival of SIFs is a welcome development, despite some expected opposition to new financial products, as controlled financial innovation is vital for the evolving Indian market as a whole. Short Explainer on Long-short Strategies: These aim to generate positive returns regardless of market direction by holding both long (buy) & short (sell) positions, either to hedge against losses, create a market-neutral portfolio, or adjust positions based on expected market movements. Fund managers may use these strategies to capitalise on relative performance between stocks or sectors, such as going long on undervalued stocks & shorting overvalued ones. However, these strategies require skillful decision-making, involve more active calls, & are harder to someone with Rs.10 lakh to invest, SIFs may seem exciting, like a ticket to an exclusive club earlier reserved only to big investors. But is rushing into this 'Mini-PMS' a smart move? For the sake of discussion, let's limit ourselves to only three equity-oriented strategies allowed for SIFs (others being two in debt, and another two in the hybrid space; refer to the table). One needs to think critically about what purpose SIF will serve in one's portfolio, which already includes equity mutual funds. Even though equity SIFs will operate like equity funds and are allowed to have more concentrated portfolios, they have one distinct feature that permits greater risk-taking. Unlike mutual funds, SIFs can engage in derivatives (futures/options) without holding the underlying assets. This allows SIFs to take unhedged short positions, i.e. betting on price declines, up to 25% of the fund's value. While this capability provides more flexibility, it also introduces higher risks, as concentrated investments can amplify both profits and losses, and complex short-selling strategies demand precise market foresight by the fund manager. This flexibility does not guarantee that SIFs will deliver better results than mutual funds. ADVERTISEMENT Many investors may feel they have outgrown the simplicity of mutual funds, having stuck to them for years, and seek the sophisticated complexities usually available to larger portfolio holders. Combined with the financial or emotional restraints of investing a larger sum, the SIF may seem an appealing solution. However, SIFs are relatively new and lack a proven track record. Once launched, it would be essential to examine how fund managers approach them, as each may use unique investment strategies and portfolio management styles. For example, some might focus on aggressive short-selling or concentrated debt positions, while others may prioritise a market-neutral strategy, leading to varied risk and return profiles. Before committing to SIFs, investors must take time to understand these differences and assess how each fund's management aligns with their goals. ADVERTISEMENT It is better to wait and watch. Investing in something untested, no doubt, is glamorous, but it could also unnecessarily increase risks. So, consider SIFs later once they have established some credibility as a concept and have demonstrated desirable investment outcomes. This may sound boring, but the fact is that your existing, basic equity funds remain a super-product for most of your investment needs! If you still want to test the waters and have `10 lakh to spare, ensure you have the stomach for the risk that comes with SIFs. Just remember: in regulated markets, there's no magic formula or surefire way to get rich quick. The Author is FOUNDER, STABLEINVESTOR ADVERTISEMENT (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of (Catch all the Personal Finance News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) 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