New SIF category gains traction: Who should invest and why?

Raghav Iyengar, CEO of 360 ONE Asset Management, said specialised investment funds are suited for experienced investors with an existing mutual fund portfolio who are looking to diversify using advanced strategies, and are not meant for first-time investors.

“SIFs are at the intersection of mutual funds and alternate investments like PMS."

He said SIFs combine the transparency, taxation structure and regulatory comfort of mutual funds with more advanced investment strategies usually seen in PMS or alternative investments. These funds are allowed to use derivatives and take limited short positions, which can help generate returns even in volatile or falling markets.

Who should consider SIFs?

“Somebody who already has a core mutual fund portfolio and is looking to diversify beyond traditional mutual fund investments, I think that's the place to go to. Obviously, because it's a ₹10 lakh minimum, it is catering to a slightly more evolved, educated audience, people who already got, hopefully money at play in capital markets.