ICICI Pru AMC files draft documents for two SIFs with SEBI

SIFs are a new class of investment products introduced by SEBI to bridge the gap between traditional mutual funds and portfolio management services

ICICI Prudential Asset Management Company (ICICI Pru AMC), which is set to list on the bourses on December 19, has filed draft documents with the Securities and Exchange Board of India (SEBI) to launch two Specialized Investment Funds (SIFs). The proposed funds are the iSIF Equity Ex-Top 100 Long-Short Fund and the iSIF Hybrid Long-Short Fund.

Moneycontrol had earlier exclusively reported that ICICI Pru AMC was preparing a series of launches under the newly created SIF category, with plans to introduce up to three strategies. The latest filings mark the company’s formal entry into this new investment segment approved by the market regulator. In conversation with Moneycontrol, CEO Nimesh Shah had expressed optimism about its long-term potential while emphasising that early traction will take time.

SIFs are a new class of investment products introduced by SEBI to bridge the gap between traditional mutual funds and portfolio management services. These funds are open to investors committing a minimum investment of Rs 10 lakh and offer fund managers greater flexibility in portfolio construction, while retaining regulatory oversight and investor protection.

At present, SEBI has permitted seven investment strategies across equity, debt and hybrid asset classes under the SIF framework. Each strategy is launched as a scheme under the SIF, with disclosures made through an Investment Strategy Information Document (ISID).

In the equity category, AMCs can offer three strategies: Equity Long-Short Fund (flexicap), Equity Ex-Top 100 Long-Short Fund focusing on mid- and small-cap stocks, and Sector Rotation Long-Short Fund, which can invest in up to four sectors. In the debt category, two strategies are allowed—Debt Long-Short Fund across durations and Sectoral Debt Long-Short Fund investing in debt instruments of at least two sectors, with certain relaxations in single-issuer exposure limits.

The hybrid category also allows two strategies: an Active Asset Allocator Long-Short Fund with dynamic exposure across equity, debt and commodity derivatives, and a Hybrid Long-Short Fund, which must invest a minimum of 25 percent each in equity and debt.

With these filings, ICICI Pru AMC joins a growing list of fund houses looking to tap the SIF segment, as investor interest grows in differentiated strategies that sit between mutual funds and alternative investment products.