Specialised Investment Funds To Bridge Gap Between MF & AIFs: Edelweiss CEO Radhika Gupta | Savings and Investments News

Gupta said India’s investor landscape is wide-ranging — from those investing as little as Rs 100 in mutual funds to individuals with large portfolios and complex financial goals.

The newly launched Specialised Investment Fund (SIF) category is expected to change the way Indian investors tap into alternative strategies by creating a bridge between mutual funds and alternative investment funds (AIFs), said Radhika Gupta, CEO of Edelweiss Mutual Fund.

Speaking at the Morningstar Investment Conference India, Gupta said India’s investor landscape is wide-ranging — from those investing as little as Rs 100 in mutual funds to individuals with large portfolios and complex financial goals.

“While AIFs and PMSs offer greater flexibility, mutual funds provide comfort, tax efficiency, and accessibility. The SIF structure, as envisioned by the regulator, blends the strengths of both — giving investors flexibility within the familiar comfort of a mutual fund framework,” she explained.

Talking about Edelweiss’s approach, she said the firm’s SIF platform, Altiva, aims to build “thoughtful, absolute-return-oriented products” across long-short, private credit, real assets, and equity strategies, all designed to add value beyond traditional mutual funds.

However, Gupta emphasised that education will be key to the success of this category. “If we don’t do the groundwork, SIFs risk becoming limited to institutions like AIFs were. The Rs 10 lakh entry point opens access to the mass affluent segment, but awareness about risk is crucial,” she said.

She further cautioned that not all SIFs are the same. “Two hybrid long-short funds can have very different exposures — one at 0% equity, another at 40%. Investors cannot just sort by returns like they do in mutual funds. Advisors must help clients understand volatility, risk-adjusted returns, and derivatives beyond arbitrage.”

Looking ahead, Gupta said the goal for Altiva SIF is to build a credible, long-term brand in semi-liquid alternatives. “While our first launch is in arbitrage plus, the opportunity is much bigger across equity, private credit, and real assets. We want to grow consistently, with investor experience and trust at the core, not by chasing short-term collections.”