Quant MF receives approval for India's first SIF

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Quant Mutual Fund has announced that it has received approval for its first specialized investment fund. In the monthly newsletter, the company noted that it was the first asset management company in India to receive approval from the Securities and Exchange Board of India (SEBI) to launch a Specialized Investment Fund (SIF).

The fund house’s maiden offering under this category, the QSIF Equity Long-Short Fund, is scheduled for launch in August 2025.

Quant Mutual Fund has also hinted at additional equity and hybrid SIF products in the pipeline over the coming months. Alongside product launches, the company plans to roll out investor education initiatives to build awareness around the nuances and potential of SIFs.

Apart from Quant other fund houses like ITI, Edelweiss, DSP, SBI have received approval to launch SIFs but are yet to announce their products.

The SIF is a new category of investment product introduced by SEBI to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS).

The regulator believes that while over the years, India's financial market has witnessed an expansion in investment products with varying degrees of risk, complexity, and regulatory oversight, a gap exists between mutual funds and PMS. SIFs aim to provide a middle ground, offering portfolio flexibility while ensuring regulatory compliance and investor protection.

The minimum investment thresholds of SIFs is lower at Rs 10 lakh thereby drawing in mass affluent investors who may be seeking more than just traditional mutual fund products.