Quant, Edelweiss, and SBI Mutual Fund Launch Specialized Investment Funds in India

Specialized Investment Funds (SIFs) – A New Era in Indian Investing

Specialized Investment Funds (SIFs) have officially entered India, creating a middle ground between mutual funds and portfolio management services. They combine the governance and tax benefits of mutual funds with the strategic flexibility of alternative investment funds (AIFs).

1. qSIF Equity Long-Short Fund

• Launch: September 17, 2025

• NFO closes: October 1, 2025

• Category: Flexi-cap equity long-short strategy

• Objective: To benefit from both rising and falling markets.

• Asset Allocation:

  • 65–100% in all-cap cash equity/equity arbitrage

  • 0–35% in all-cap unhedged derivative strategies (long)

  • 0–25% in all-cap unhedged derivative strategies (short)

  • 0–100% in hedging

  • 0–15% in margins (cash, T-bills, G-secs)

• Minimum equity exposure (Long + Short): 80%

• Benchmark: Nifty 500 TRI

• Fund Managers: Sandeep Tandon, Lokesh Garg, Sameer Kate, Ankit Pande, Sanjeev Sharma

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2. Altiva Hybrid Long-Short Fund

• Launch: October 1, 2025

• NFO closes: October 15, 2025

• Category: Hybrid interval strategy

• Objective: To deliver consistent, income-oriented returns through equity arbitrage, high-quality fixed income, and special opportunities in equity markets (IPOs, buybacks, open offers, mergers, pair trades, covered calls, straddles).

• Liquidity: Daily subscriptions; redemptions available twice a week (Mondays and Wednesdays)

• Minimum Investment: ₹10 lakh

• Options: Lump sum, SIP, STP, SWP

• Taxation: Long-term capital gains taxed at 12.5% beyond 24 months holding

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3. SBI Magnum Hybrid Long-Short Fund

• Launch: October 10, 2025

• Category: Hybrid long-short (interval strategy)

• Objective: To generate regular income by predominantly investing in derivative strategies like covered calls, protective puts (collar), arbitrage opportunities, debt and money market instruments, and long-term capital appreciation through selective unhedged equity exposure.

• Portfolio Allocation:

  • Equity and equity-related instruments (hedged and unhedged short): 65–75% (hedged with derivatives; short up to 25%)

  • Debt and money market instruments: 25–35%

  • REITs & InvITs: 0–10%

• Benchmark: Nifty 50 Hybrid Composite Debt 50:50 Index

• Liquidity: Daily subscriptions; redemptions twice a week (Mondays and Thursdays)

• Minimum Investment: ₹10 lakh | Additional purchase: ₹10,000 | Minimum redemption: ₹1,00,000

• Exit Load:

  • 0.50% up to 15 days

  • 0.25% from 16 days to 1 month

  • Nil after 1 month

• Taxation:

• If held >12 months: LTCG at 12.5% (exemption up to ₹1.25 lakh p.a.)

• If redeemed ≤12 months: STCG at 20%
  
  
  
  

Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision. This document is for knowledge purpose only. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.