Since the market regulator’s nod in April, eight asset management companies have launched specialised investment funds or SIFs. These funds act as an effective satellite or tactical allocation—complementing core equity and debt funds .

Most SIFs are targeting arbitrage-plus returns, typically 100–200 basis points higher than traditional fixed-income or arbitrage category funds. As these are placed between arbitrage and hybrid category funds, investors can expect an annualised return of 6–8%. The flexibility to employ a wider range of investment techniques gives these funds the potential to generate returns across market cycles.

The minimum investment in SIF is Rs 10 lakh, lower than the Rs 50 lakh for portfolio management services. “For investors who value stability, liquidity and pr

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