Quant to launch India's 1st SIF: Should you be interested?
What's the story
Quant Mutual Fund has become the first asset management firm in India to get approval from the Securities and Exchange Board of India (SEBI) for a Specialized Investment Fund (SIF). The fund house is gearing up to launch the country's first investment product under the SIF framework, called 'QSIF Equity Long-Short Fund,' by August 2025. So, what do SIFs offer? Let's take a look.
Investment strategy
What are SIFs?
SIFs are a new category of investment vehicles designed for sophisticated investors with a higher risk appetite and deeper market knowledge. These funds provide more flexibility in their investment strategies, including the ability to take long and short positions, as well as extensive use of derivative instruments. The SIF framework will permit active management strategies not typically available under traditional mutual fund structures.
Fund structure
SIF to target evolving market dynamics
As per the fund house's factsheet, Quant Mutual Fund will structure the SIF to target evolving market dynamics with its enhanced risk mitigation tools. Apart from the equity long-short strategy, Quant also plans to launch hybrid SIF strategies in the coming months. The fund house said it will focus on investor education to build awareness around the product's risk-return characteristics and suitability.
Market response
Quant emphasizes on active risk management tools
The launch of the SIF comes as market participants are looking for alternative strategies amid heightened global volatility and evolving macroeconomic conditions. Quant said that the new fund will be designed to navigate both rising and falling markets, providing tools for active risk management.