Quant Mutual Fund has become the first asset management company in India to receive regulatory clearance to launch products under the Specialised Investment Fund (SIF) framework, a new category introduced by SEBI in April 2025 to bridge the gap between conventional mutual funds and portfolio management services (PMS).
The approval, granted in August 2025, clears the way for Quant to roll out its first strategy under the new framework — the QSIF Equity Long-Short Fund — aimed squarely at high-net-worth and other sophisticated investors who are comfortable with higher risk in exchange for the potential of enhanced returns.
SIFs were created by the regulator to give experienced investors access to more advanced strategies, such as long-short equity investing, without requiring the very large capital commitments typically associated with PMS or Alternative Investment Funds (AIFs), where entry tickets can run into tens of lakhs or more. Under the SIF structure, the minimum investment has been set at Rs 10 lakh, positioning it as a middle ground between traditional mutual funds and the more exclusive, less regulated world of PMS.
Unlike conventional equity mutual funds, which largely rely on rising markets to generate returns, SIF strategies are permitted to use derivatives more actively, including taking short positions on stocks or sectors expected to decline. This gives fund managers additional tools to manage risk and pursue returns across different market conditions — rising, falling or range-bound.
Quant Mutual Fund has indicated it plans to build a distinct brand and dedicated online presence for its SIF offerings, separate from its existing mutual fund business, in order to help investors understand how these new products work and how they differ from regular schemes. The AMC's monthly investor communication described the SEBI approval as a milestone moment for the firm and for the broader Indian mutual fund industry.
The move is being closely watched by rivals. Other large fund houses, including Edelweiss, Mirae Asset and SBI Mutual Fund, are reportedly exploring their own SIF launches, though none had announced specific products at the time of Quant's approval. Industry observers say the SIF category could open up an entirely new segment for distributors to engage more sophisticated clients who have outgrown plain-vanilla mutual funds but are not yet ready — or willing — to commit the larger sums PMS providers typically require.
Quant's approval comes at a time when the AMC has also been vocal about its broader market views, including a preference for select large-cap names and opportunities in infrastructure and telecom, alongside a constructive long-term stance on precious metals despite expecting near-term corrections in gold prices.
For now, attention turns to the specifics of Quant's first SIF product and when its new fund offer will open to investors.