Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
The initiative aims to bridge the gap between mutual funds and portfolio management services while ensuring robust risk management and investor protection.
SIFs allow asset management companies (AMCs) to offer innovative investment strategies. These funds can be structured as open-ended, closed-ended, or interval funds, providing flexibility in portfolio construction.
Investors must invest a minimum of ₹10 lakh per AMC across all strategies, with accredited investors receiving exemptions.
SEBI has mandated strict exposure limits to mitigate risks, such as capping allocations to individual issuers, companies, and sectors.
Who can benefit?
High-Net-Worth Individuals (HNIs): SIFs are tailored for experienced investors with significant capital and a higher risk appetite.
Advanced investors: Those looking for more sophisticated strategies and broader exposure limits can benefit from this product.
Portfolio managers: SIFs offer flexibility to create innovative, customized products, enabling strategies that traditional mutual funds cannot accommodate.
Key features of SIFs
Higher allocation limits:
- Up to 15% allocation to a single security, compared to the 10% cap in mutual funds.
- Fixed-income strategies can allocate 20% to a single issuer, extendable to 25% with board approvals.
- Investment limits for REITs (Real Estate Investment Trusts) and INVITs (Infrastructure Investment Trusts) are doubled to 20%.
Transparency and risk management:
SEBI ensures clear differentiation between SIFs and mutual funds with distinct branding and strict risk controls.
Innovation potential:
AMCs can launch specialised products aligned with investors’ unique financial goals and risk tolerance.
Addressing market gaps
SIFs aim to reduce the proliferation of unregistered and unauthorised investment schemes that promise unrealistic returns.
These funds offer a regulated alternative with built-in investor protection measures.
Antosh Joseph, Co-founder and CEO of Germinate Investor Services, said, “SIFs open up new opportunities for HNIs and portfolio managers, offering enhanced flexibility and broader investment horizons.”
First Published: Dec 18, 2024 11:04 AM IST
