SIFs: PMS and AIF Firms Seek Mutual Fund Licences
Why in the news
Portfolio managers and alternative fund houses are seeking mutual fund licences so they can launch SIFs.
Key facts
- Target investors: high-net-worth individuals wanting flexible strategies.
- ASK Investment Managers: has in-principle SEBI approval.
- Partial SEBI approvals: Jio BlackRock, Pantomath Capital Advisors, Capitalmind Financial Services.
SIF versus PMS and AIF
| Product | Minimum investment | Tax |
|---|---|---|
| SIF | ₹10 lakh | On redemption only |
| PMS | ₹50 lakh | At every trade |
| AIF | ₹1 crore | Category III: fund level |
Permitted strategies
- Equity long-short: at least 80% equity, 25% short limit.
- Ex-top 100 long-short: no large-caps, 65% equity exposure.
- Sector rotation: up to four sectors at a time.
- Debt-oriented hybrid: fixed income mixed with other hybrid approaches.
Exam angle
- SIF = Specialised Investment Fund.
- Approving regulator: SEBI.