Specialised Investment Funds (SIFs) are designed to offer focused investment strategies within a regulated framework. They aim to provide flexibility in portfolio construction while following defined investment mandates. These funds are suited for investors who understand market-linked products and structured strategies.

A Specialised Investment Fund is a market-linked investment product that follows a specific strategy, theme, or structure. It may combine features of different asset classes such as equity, debt, and derivatives within permitted regulatory limits.

SIFs are structured products and operate under regulatory guidelines issued by the securities market regulator. They are typically meant for investors who are comfortable with market volatility and structured investment approaches.

Types of Specialised Investment Funds

  • Equity-Oriented Strategies: Focus primarily on listed equity and equity-related instruments.
  • Debt-Oriented Strategies: Invest mainly in fixed income instruments such as bonds and money market securities.
  • Hybrid or Multi-Asset Strategies: Allocate investments across equity, debt, and other permitted instruments.
  • Strategy-Based or Structured Funds: May use permitted derivative strategies for hedging or portfolio efficiency.
Specialised Investment Fund

Key Features of Specialised Investment Funds

  • Defined Investment Mandate: Each fund operates based on a clearly stated objective and strategy outlined in the scheme documents.
  • Market-Linked Returns: Returns depend on the performance of underlying assets and market conditions. There is no assurance of returns.
  • Regulated Framework: These funds function under regulatory oversight with disclosure, compliance, and reporting requirements.
  • Portfolio Transparency: Periodic disclosures help investors understand portfolio composition and strategy.
  • Risk Considerations: Since SIFs may invest in equity, debt, or derivatives, they carry market risk, credit risk, and other associated risks depending on the structure.
  • Suitable for Informed Investors: These products are generally considered by investors who understand structured investment strategies and market fluctuations.

Specialised Investment Funds provide access to focused and structured investment approaches within a regulated environment. Understanding the strategy, risk factors, and tenure is important before participating.

Logo Whatsapp

FutureKonnect
Typically replies within an hour

FutureKonnect
×
Chat with Us