Mutual funds are lining up equity and hybrid strategies as their entry point into the newly introduced specialised investment fund (SIF) category, aiming to capitalise on early-mover advantage and plug gaps unmet by traditional schemes.
Fund executives say the choice between equity and hybrid strategies is driven by three key factors: Existing product gaps in the investment universe, market demand for such offerings, and the resources available to the fund house.
The first SIF launches are expected next month, with at least two asset management companies (AMCs) -- Quant and Edelweiss -- having secured SIF licences. Edelweiss will operate its SIF business under the 'Altiva SIF' brand.
Several AMCs have applied to the Securities and Exchange Board of India or are in the process of doing so.On the product front, Edelweiss and Axis have chosen hybrid strategies, while Quant and SBI are focusing on equity.
Business Standard