India’s First SIF Launch: Ushering a New Era in Fund Investing

1 August 2025 marked a new beginning in the Indian investment landscape, as several outlets announced the entry of a new investment medium. Through its X handle, Quant Mutual Fund confirmed that they have received the SEBI approval to launch the inaugural long-short fund, marking the beginning of the Specialised Investment Funds (SIF) category in India.

An SIF aims to bridge the gap between Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs) and Mutual Funds (MFs). While SIFs offer greater control or flexibility over portfolio construction than regular MFs, they also have higher regulatory control and lower entry barriers, like lower minimum investment, than PMS or AIFs. The concept of SIF was first introduced by SEBI in March 2024¹.

Subsequently, the Quant Mutual Fund SIF launch is the inauguration of SIFs in India. This blog unpacks every aspect of this new investment medium by the Quant Mutual Fund.

Inside India’s First SIF: QSIF by Quant Mutual Fund

Under the SEBI Specialised Investment Fund framework, Quant Mutual Fund is aiming to launch QSIF Equity Long Short Fund. Just like Nippon India Multi-Cap Fund is a mutual fund operating under the Multi-Cap Category, QSIF Equity Long Short Fund is operating under the SIF category.

Let us decode its anticipated launch and characteristics based on information provided by Quant Mutual Fund and SEBI guidelines.

A. Key Features of the QSIF Equity Long-Short Fund

Although the factsheet of the new SIF by Quant Mutual Fund is not yet available, discussed below are some key takeaways from the reports and SEBI guidelines regarding QSIF Equity Long Short Fund.

1. Target Audience: Quant Mutual Fund has clarified that the investment medium is suitable for investors who possess knowledge of financial markets. The investors can expect advanced investment strategies, requiring a high risk tolerance from this medium. In simple terms, it is akin to one of the new MF products for rich investors.

2. Minimum Portfolio Investment: According to a SEBI circular dated February 2025, an Equity Long Short Fund should invest at least 80% in equity and related instruments². However, short exposure in equity and related instruments through unhedged derivatives should not exceed 25%.

3. Minimum investment: Investors need to have an investment amount of at least INR 10,00,000 to invest in any kind of SIF, including Equity Long Short³. Now, let us compare this to other fund investments to understand how SIFs lie between regular MFs and AIFs.

4. Investment Strategy: The SIF aims to take long and short positions in the equity market to benefit from market fluctuations. It might also use derivatives and enhance risk-mitigating methodologies. 
Moreover, the Quant Mutual Fund Factsheet that carries the SIF announcement also gives several market trends related to gold, bitcoin, oil, and other commodities⁶.

5. Creation of a distinct market presence: Quant Mutual Fund has also stated that a separate website portal and communication channel would be created for its SIF category. The objective is to establish a separate brand identity from its regular MFs.

Now that we have a working idea of the various characteristics of this long-short mutual fund in India, let’s take a look at its timeline.

B. Launch Timeline And SEBI Guidelines

The Quant Mutual Fund Equity Long Short SIF is expected to be launched in August 2025. The offer document is expected to carry the following information related to liquidity timelines, as per SEBI notifications.

1. Subscription and Redemption: The process of purchasing SIF units is called subscription, and the process of liquidating them is called redemption. The permissible frequency of redemption and subscription, as per the investment strategy, is to be mentioned in the offer documents⁷. 
   For instance, an SIF might allow investors to subscribe to its units weekly but redeem monthly. This is to control the liquidity of SIF.
2. Disclosure: SIF is a high-value and high-risk investment. Therefore, they might require a more periodic assessment, given that investors have fair control over investment strategies. Therefore, the portfolio disclosure frequency is also expected to be mentioned.
3. Notice Period: Moreover, if an investor needs to give any notice before redemption, the requirement, along with the notice period, will also be mentioned. 

Along with liquidity and investment strategy guidelines, there must also be necessary disclosures related to risks. The Quant Mutual Fund India must adhere to such SEBI guidelines to ensure smooth functioning.

C. Risk Controls And SEBI Guidelines

Similar to low, medium, or high-risk mutual funds in India 2025, the Quant Mutual Fund SIF is expected to have risk bands in its scheme documents through pictorial risk meters that show the potential risk associated with investment strategies. 

The table below shows the risk meter stipulated according to the SEBI guidelines.

Source: SEBI⁸

Now, like other Quant Mutual Funds in India, the suitability of the Equity Long Short Fund depends on the investor's temperament as well. 

What the SIF Category Means For Indian Investors

Let us now take a closer look at what this new Quant Mutual Fund offering means for investors. This can aid us in understanding if this SIF category can make its place among the best Quant Mutual Funds or not.

A. A New Era Of Diversified Hedge Fund Strategies Mutual Fund

AIFs and Hedge Funds have been out of the purview of numerous investors due to their entry barrier in the form of a high minimum investment. The introduction of the SIF category shall give numerous investors a sweet upgrade from mutual funds, in terms of sophisticated investment strategies backed by high-risk. Moreover, it would not be as niche as hedge funds.

This marks a new beginning of targeted diversification, wherein investors can have wider access to a greater range of investment categories.

B. What To Know Before Investing In A SIF

However, before choosing QIF Equity Long Short Fund, investors must consider a few points.

1. It is a high-risk investment medium.
2. The investment is targeted at seasoned investors with optimal investing know-how.
3. The minimum investment set by SEBI is still higher than regular MFs.

Conclusion

In short, the Quant Mutual Fund’s inauguration of SIFs with its Equity Long-Short fund reiterates the growing sophistication of Indian markets. Investors today have nuanced differences in investing needs. Creation of unique categories will not only aid individual investor interests but also optimise nation-building through increased investment.

And if you want to participate in these rising growth trends of the Indian markets, don’t forget to explore the diverse investment mediums offered by Grip Invest- India’s one-stop destination for fixed returns.

FAQs On Quant Mutual Funds In India

1. Who can invest in Quant’s QSIF Equity Long-Short Fund?
According to official statements by Quant Mutual Fund, the QSIF is targeted towards sophisticated investors with optimal investment knowledge and a high risk appetite.

2. What is the minimum investment amount for SIFs in India?
According to SEBI guidelines regarding SIFs, the minimum investment amount should be INR 10 lakhs. For details specific to Quant Mutual Fund, we need to wait for their fact sheet.

3. Are SIFs regulated by SEBI like mutual funds?
Yes, SIFs are regulated by SEBI. The category was announced by  SEBI. Moreover, according to SEBI guidelines, certain guidelines are even stipulated by AMFI.

References:
1. Economic Times, accessed from: https://economictimes.indiatimes.com/mf/analysis/sif-vs-mutual-funds-vs-pms-vs-aifs-what-you-need-to-know/articleshow/122001925.cms?from=mdr

2. SEBI, accessed from: https://www.sebi.gov.in/legal/circulars/feb-2025/regulatory-framework-for-specialized-investment-funds-sif-_92299.html

3. SEBI, accessed from: https://www.sebi.gov.in/legal/circulars/feb-2025/regulatory-framework-for-specialized-investment-funds-sif-_92299.html

4. SEBI, accessed from: https://www.sebi.gov.in/sebi_data/faqfiles/sep-2024/1727350357563.pdf

5. CNBCTV18, accessed from: https://www.cnbctv18.com/alternative-investment-fund/aif-investment-how-much-corpus-do-you-really-need-19564077.htm

6. Quant Mutual, accessed from: https://quantmutual.com/Admin/Factsheet/quant_Factsheet_August_2025.pdf

7. SEBI, accessed from: https://www.sebi.gov.in/legal/circulars/feb-2025/regulatory-framework-for-specialized-investment-funds-sif-_92299.html

8. SEBI, accessed from: https://www.sebi.gov.in/legal/circulars/feb-2025/regulatory-framework-for-specialized-investment-funds-sif-_92299.html

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