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SIFs face a bottleneck: Too few hands to sell India’s newest funds

With fewer than 1,500 licensed distributors, AMCs launching Specialised Investment Funds risk running into a capacity wall. But they are scaling training, and counting on rich customers coming directly.

October 01, 2025 / 15:40 IST
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For now, industry leaders are aligned that measured growth is not a weakness but a necessity. By steadily expanding distributor capacity and investing in training, AMCs are laying the groundwork for wider adoption. As funds begin to demonstrate performance, the hope is that, investor confidence too will follow.

Despite a wave of recent launches by AMCs, the success of Specialised Investment Funds (SIFs) has hinged heavily on building a strong distribution capacity. With requirements of exams, training and preparedness slowing down growth, fund houses are now racing to expand capacity before investor demand gathers pace.

Specialised Investment Funds (SIFs), India’s newest investment category, are entering the market but distribution network remains a key constraint. Only 1,500 distributors are currently certified to sell these products, reflecting the steep entry barrier as well as the early stage of the fund category.

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AMCs and industry bodies acknowledge the slow start but are pushing ahead with training and support to build a sustainable distribution base.

Distributor pool playing catch-up