The SIF vertical, which allows MFs to offer complex products to relatively sophisticated investors, has managed to garner scale in just seven months of the launch of the first products. The growth has largely been concentrated in recent months as several new fund houses, including some major names like ICICI Prudential and Aditya Birla Sun Life MF, entered the space.
“SIFs are benefiting from a strong launch effect, with product proliferation from multiple asset management companies (AMCs),” said Sunil Subramaniam, founder and chief executive officer (CEO), Sense and Simplicity.
Select few early entrants, those that have established a positive track record in the short period, have also driven the folio and AUM growth.
Currently, ICICI Prudential’s iSIF leads in number of folios, while Edelweiss’ Altiva SIF has the highest assets under management (AUM), shows data available in their factsheets. SBI MF’s Magnum SIF is at the second spot in both folios and AUM.
The breakup of fund-wise data shows concentration in folios and assets among top players. The top three fund houses in terms of folios now account for 71 per cent of the total. In the case of AUM, the concentration is even higher as the top three have a 78 per cent share in the industry tally of ₹12,329 crore.
While the existing players are establishing their presence, a slew of fund houses are eyeing their entry in the coming months.
“We are seeing a strong adoption in SIFs, with over 10 per cent month-on-month growth in AUM and
investor participation across CAMS-serviced funds. At the industry level, fourteen AMCs are already live, and six more are expected shortly, signalling expanding industry commitment,” said Anuj Kumar, managing director, Computer Age Management Services (CAMS).
Mirae Asset MF (Platinum SIF) and Union MF (Arthaya SIF) are among the latest entrants to the space. Several others — including Kotak MF, HSBC MF, HDFC MF, UTI MF, Axis MF, Nippon India MF, and DSP MF — are at different stages of entering the market.
360 ONE MF (Dyna SIF), Bandhan MF (Arudha SIF), Edelweiss MF (Altiva SIF), ICICI Prudential MF (iSIF), ITI MF (Diviniti SIF), Quant MF (QSIF), SBI MF (Magnum SIF), Tata MF (Titanium SIF), The Wealth Company MF (WSIF), and Franklin Templeton MF (Sapphire SIF), apart from the two recent entrants Platinum and Arthaya, already have presence in the space.
The growing competition in the space comes after easing of the distribution problem that the industry faced during the initial months. Earlier, only a limited number of MF distributors had completed the mandatory certification required to sell SIF products, constraining the reach. However, industry participants say distributor readiness has improved steadily over the past few months, with thousands of distributors now registered to offer the products.
“Distributor readiness is also improving, with more than 6,000 distributors clearing the NISM XIII certification. More importantly, investor participation is widespread with B30 markets outpacing T30, indicating growing trust beyond metro markets and a maturing and a well-rounded ecosystem. This transition reflects a shift from launch to broader adoption phase of SIF,” said Kumar.