Investing: Are SIFs Better Than MFs and PMS?

Added: 2026-05-25

[00:00:00]It's called the specialized investment funds which was uh was brought in um into being by uh SEBI about a year ago now. First of all, with mutual funds, and this is a mutual fund, um you could never hedge.

[00:00:17]And what they've done is they brought out um in terms of um products across debt and equity where you can take a naked short or you can hedge, >> right?

[00:00:31]um which would hopefully mean that your volatility becomes lower uh and you can protect yourself or protect the investor um in terms of you know volatility um so that was the first reason the ticket size is 10 lakhs um so that compares to uh PMS's 50 right >> um and Aifs are one draw.

[00:01:00]>> Um, so I think it'll take money initially away from those two pockets.

[00:01:05]>> Mhm.

[00:01:06]>> Right.

[00:01:06]>> And I think if you liken it to the say passive the passive industry, right?

[00:01:12]>> U which has gone from nowhere to I don't know huge amounts now. Right.

[00:01:16]>> Um that's how I see the you know the kind of industry grow over the next you know 5 to 10 years. I I think we introduced a category 3 hedge fund back in 2013 when SEBI introduced them and we were consistently making around 12% gross >> but taxation is at business taxation so it's 40% and then your fees and everything was taking your debt down to seven >> right so you're competing at the debt side of people's wallets >> right so if I came to view it'd be I'd be saying you know rather than invest in arbitrage or fixed deposits I can give you two to 300 basis points above that >> with similar kind of risk profile right even though it's in equities right um now the same product I can do in a mutual fund where the taxation is 12 a.5%. So all of a sudden now there's a taxation difference between a mutual fund and AIF and a mutual fund and PMS.

[00:02:24]So that's where I think the monies will come into into this uh category initially.