Quant Mutual Fund has received the Indian capital market regulator SEBI’s nod to launch the country’s first ‘long-short fund’ under the newly introduced Specialised Investment Fund (SIF) category. This SIF category fund will be known as QSIF.
Quant MF’s QSIF can buy stocks it expects to go up (long positions) and also bet against those likely to fall (short positions). This will help lower risk and look to give better returns, especially in volatile markets.
This has marked a major shift in how mutual funds can now offer advanced investment strategies.
Quant Mutual Fund was the first recipient of the SEBI licence to launch a high-risk long-short equity fund under the SIF category.
What are Specialised Investment Funds?
SIFs are a new type of mutual fund for those investors who are willing to take higher risks. SIFs offer investors more flexibility in terms of their investment strategies as compared to regular mutual funds. These funds, like regular mutual funds, also operate within a regulated framework to ensure investor protection.
These newly launched mutual funds under this SIF category are seen bridging the gap between traditional mutual funds and Portfolio Management Services (PMS). These funds are meant for high-value investors, with a minimum investment requirement of Rs 10 lakh.
Besides Quant Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual fund and ITI Mutual Fund are reportedly planning to launch their product in the SIF category, according to public disclosures and reports.
According to reports, at least ten Indian and foreign asset management companies (AMCs) have plans to launch their long-short equity funds to investors with good networth.
SEBI’s new fund category targets high-value investors
The Indian capital market watchdog had announced this new category of investment funds last year to give high-value investors more options.
From April 1, 2025, mutual funds in India are allowed to launch long-short equity funds — where fund managers can take both long and short positions — under the SIF category.
SIFs can be structured as open-ended, closed-ended, or interval funds. The minimum investment required is Rs 10 lakh per AMC across all strategies.
SIFs have been brought with the aim of checking the proliferation of unregistered and unauthorised investment schemes that give investors false promises of unrealistic returns.