
Explained: What does Sebi’s new asset class Specialized Investment Fund offer
Sebi has introduced a Specialized Investment Fund (SIF) framework to bridge the gap between mutual funds (MFs) and portfolio management services (PMS) and it aims to provide sophisticated investors with more flexible investment opportunities while ensuring regulatory oversight. The new framework will be effective from April 1, 2025.
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Eligibility Criteria for SIFs
A mutual fund registered under SEBI regulations may establish an SIF subject to fulfilling that the fund must have been in operation for at least three years with an average assets under management (AUM) of Rs 10,000 crore in the last three years or through the alternate route.
In an alternate route, the asset management company (AMC) must appoint a Chief Investment Officer (CIO) with at least 10 years of experience managing Rs 5,000 crore, and a fund manager with a minimum of three years of experience managing Rs 500 crore.
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Branding and Advertising Guidelines
To differentiate SIFs from mutual funds, SEBI mandates that AMCs must create a separate brand identity for their SIF offerings. While they can use the sponsor’s brand name for the first five years, it must be
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