#BandhanAMC #SEBI #SpecialisedInvestmentFunds #ArudhaSIF #IndianMarkets #Investing #MutualFunds #AIF #PMS #WealthManagement #InvestmentStrategies #HNIs
Mumbai: In a significant development for India’s investment landscape, Bandhan Asset Management Company (AMC) has received approval from the Securities and Exchange Board of India (SEBI) to launch Specialised Investment Funds (SIFs). The move positions Bandhan AMC among the first asset managers in the country to enter this newly introduced product category, aimed at delivering flexible and differentiated investment strategies to sophisticated investors.
The new offerings will be introduced under the ‘Arudha SIF’ platform, which Bandhan AMC has designed to provide solutions beyond traditional investment avenues such as mutual funds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs).
What Are Specialised Investment Funds (SIFs)?
Specialised Investment Funds are a new category introduced by SEBI to address the growing demand for tailored and innovative investment products. Unlike traditional mutual funds, which are generally structured to cater to the broader retail segment, SIFs allow asset managers greater flexibility in portfolio construction, including the ability to design equity, debt, and hybrid strategies.
Importantly, SIFs are also permitted to take unhedged short derivatives positions, making them suitable for investors seeking differentiated risk-return profiles. At the same time, they avoid the high entry barriers that are often associated with PMS and AIFs, such as large minimum ticket sizes.
In essence, SIFs are designed to bridge the gap between mutual funds’ accessibility and PMS/AIFs’ exclusivity, offering investors the opportunity to access strategies that are more nuanced and targeted.
Why Is This Important?
The introduction of SIFs is being seen as a regulatory innovation aimed at deepening India’s capital markets. Over the last decade, Indian investors—especially high-net-worth individuals (HNIs) and affluent retail clients—have been demanding products that go beyond the traditional scope of diversified mutual funds.
Until now, their only choices for differentiated strategies lay in PMS or AIFs, both of which come with steep investment requirements. SIFs, on the other hand, bring such strategies into a regulated and more accessible framework, creating opportunities for investors to participate in thematic, sectoral, or strategy-driven funds.
Bandhan AMC’s Strategic Advantage
For Bandhan AMC, this approval represents a strategic expansion of its offerings. The company will now be able to cater to investors who are looking for products beyond the conventional space, without stepping entirely into the AIF or PMS segment.
Vishal Kapoor, CEO of Bandhan AMC, explained that the launch of the Arudha SIF platform is a direct response to market needs. “There is an increasing demand for investment solutions that lie beyond traditional categories. SIFs give us the flexibility to design non-traditional strategies within a regulated environment. This is not just about adding products—it’s about giving investors access to outcomes they otherwise could not achieve with existing instruments,” Kapoor said.
Comparing SIFs with Mutual Funds, PMS, and AIFs
To understand the significance of SIFs, it helps to compare them with the existing investment vehicles:
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Mutual Funds: Highly regulated, accessible to retail investors with small ticket sizes, but limited in terms of flexibility. Fund managers cannot take unhedged derivative positions or design highly concentrated strategies.
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Portfolio Management Services (PMS): Offers personalized portfolios with significant flexibility, but usually requires a minimum investment of ₹50 lakh, limiting participation to wealthy individuals.
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Alternative Investment Funds (AIFs): Provides exposure to niche strategies, private equity, venture capital, and hedge fund-like structures, but comes with very high minimum investments (₹1 crore or more) and is suitable only for HNIs and institutions.
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Specialised Investment Funds (SIFs): Positioned in between, SIFs allow more complex strategies than mutual funds but without the high entry barriers of PMS and AIFs. They are particularly well-suited for sophisticated retail investors and emerging HNIs who seek differentiated portfolios.
Bandhan AMC’s Market Footprint
Established in 2000, Bandhan AMC has steadily built a reputation as a diversified asset manager. The company today offers mutual funds, alternative strategies, and PMS solutions across India. With operations in over 100 cities and 790 towns, Bandhan AMC manages more than four million folios, serving a wide range of clients from individual investors to family offices and large institutions.
By launching SIFs, Bandhan AMC adds another dimension to its product suite, ensuring it remains competitive in an industry where investor preferences are rapidly evolving.
Broader Implications for Investors
For investors, the arrival of SIFs means greater choice and access to strategies once restricted to the ultra-wealthy. It also represents a step towards financial democratization, as SEBI continues to create product structures that balance flexibility with investor protection.
Industry experts believe that SIFs could become a game-changer, attracting not only HNIs but also informed retail investors who are comfortable with slightly higher risk in exchange for potentially better risk-adjusted returns.
Moreover, asset managers like Bandhan AMC, with their pan-India reach and established distribution channels, are well-positioned to popularize this category.
Conclusion
Bandhan AMC’s SEBI approval to launch Specialised Investment Funds under the ‘Arudha SIF’ platform marks a milestone for the Indian asset management industry. By creating a middle ground between mutual funds and high-ticket alternatives like PMS and AIFs, SIFs are set to broaden the spectrum of investment opportunities available in India.
For investors, this development opens the door to more innovative, flexible, and targeted strategies within a regulated framework. For the industry, it signals the beginning of a new chapter where product innovation aligns more closely with investor demand.
As Bandhan AMC rolls out its offerings gradually, all eyes will be on how quickly SIFs gain traction among India’s growing base of sophisticated investors.
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