SIFs — which allow mutual funds to offer more complex and higher-risk strategies — have garnered over Rs 10,000 crore in assets under management (AUM) within six months of the first launch.
The coming weeks are likely to see entries from several large fund houses. Kotak Mutual Fund (Infinity Hybrid Long-Short Fund), Mirae Asset Mutual Fund (Platinum Hybrid Long Short Fund), and HSBC Mutual Fund (RedHex Hybrid Long-Short Fund) have received regulatory approvals from the Securities and Exchange Board of India (Sebi) for their maiden SIF offerings. Union Mutual Fund is also expected to launch its first product, the Arthaya Equity Long Short Fund, shortly.
While these launches may coincide, the paths to market have varied. Some fund houses, such as Mirae Asset Mutual Fund, secured licences months ago but deferred rollout to ensure operational readiness. Others adopted a wait-and-watch approach before committing to the emerging segment.
“Our approach has been to ensure that we bring a well-differentiated product to market, backed by the right investment team and robust operational readiness. While this meant taking additional time before launch, it allows us to enter the segment with a stronger, more scalable proposition,” said Vaibhav Shah, head – products, business strategy & international business, Mirae Asset MF.
One of the initial challenges in the SIF segment was the limited distribution base. However, this has improved in recent months, with more mutual fund distributors completing the required certification.
“We have seen steady progress in MF distributor readiness over the past few months, with more partners successfully completing the required certification process. Regulators are also reviewing steps to broaden this base,” Shah added.
CAMS, one of the two registrar and transfer agents in the MF space, said it is seeing a sharp pick-up in activity in the SIF space.
“Six AMCs serviced by CAMS are already live with more than 30,000 investors and Rs 6,000 crore in AUM, and 10 more are expected to launch in the coming quarter. More than 6,000 MF distributors have registered for SIFs, indicating that the entire ecosystem is ready for supporting this category, which has now moved from the launch stage to the adoption stage,” said Anuj Kumar, managing director, CAMS.
So far, eight fund houses — 360 ONE Mutual Fund (Dyna SIF), Bandhan Mutual Fund (Arudha SIF), Edelweiss Mutual Fund (Altiva SIF), ICICI Prudential Mutual Fund (iSIF), ITI Mutual Fund (Diviniti SIF), Quant Mutual Fund (QSIF), SBI Mutual Fund (Magnum SIF), and Tata Mutual Fund (Titanium SIF) — have established a presence in the segment.
Several other large fund houses, particularly among the top 20, are at various stages of evaluating or preparing their entry. These include HDFC Mutual Fund, Nippon India Mutual Fund, UTI Mutual Fund, Axis Mutual Fund, and DSP Mutual Fund. Most have secured SIF licences and are working on product strategies or awaiting regulatory approvals.
“We have secured all necessary regulatory approvals. The team is working on designing a couple of differentiated products in this space,” said Navneet Munot, CEO of HDFC MF, during a post-earnings call earlier this month.
In addition to new entrants, existing players are also building a strong pipeline of launches. Edelweiss Mutual Fund (Altiva SIF), ICICI Prudential Mutual Fund (iSIF), and others have already secured approvals for additional products.
