SIF launches set to pick up as fund houses line up debut schemes

Bandhan MF latest to launch SIF, ICICI Pru, 360 ONE gear up for entry

The specialised investment fund (SIF) space is set to witness a pick-up in action, with multiple fund houses lining up their debut offerings for launch.

 

Bandhan Mutual Fund (MF), which will operate its SIF division under the Arudha brand, announced its SIF entry with a hybrid long-short fund on Friday. ICICI Prudential MF (under iSIF) and 360 ONE MF (under Dyna SIF) have filed the draft documents for their first schemes with the Securities and Exchange Board of India (Sebi).

 

So far, the newly introduced scheme segment within the MF universe has seven funds from five fund houses. Quant MF leads in terms of launches with three schemes. SBI MF, Edelweiss MF, ITI MF and Tata MF have launched one scheme each.

 

As of November 2025, five of these schemes had completed their launch period and were managing over ₹2,900 crore.

 

While the launches are likely to pick up, they are likely to remain concentrated in a couple of categories. The hybrid long-short fund category has witnessed the highest interest from fund houses so far, as it provides the scope to create a differentiated offering.

 

Currently, four of the seven SIFs are in this category. Bandhan’s Arudha Hybrid Long Short, which hit the market on Friday, is another addition. ICICI Prudential MF has also filed for a product in the same category.

 

Most of the funds in the category are aimed at investors eyeing absolute returns or fixed income. Most of the schemes, using the flexibility to go short and deploy money into complex strategies, aim to outperform hybrid funds such as arbitrage and balanced advantage funds while maintaining a comparatively lower risk profile and tax efficiency.

 

“Arudha Hybrid Long-Short Fund has been designed for sophisticated investors such as high net-worth individuals, institutional investors and family offices looking for optimal returns with optimal tax efficiency that can be achieved through the uniquely structured SIF,” said Vishal Kapoor, CEO, Bandhan AMC. The scheme will allocate up to 65 per cent to short- to medium-term debt and money market instruments while maintaining a minimum 35 per cent allocation to fully hedged, market-neutral equity positions.

 

SIFs are a new MF category that gives fund managers greater flexibility, including the use of long-short strategies and derivatives. The new pooled investment vehicle, which was introduced by Sebi in April 2025, witnessed its first launch in September 2025.

 

In addition, there are multiple other fund houses that have received SIF licences but are yet to announce their schemes. These fund houses include HDFC MF, Union MF, DSP MF and The Wealth Company.