DSP Mutual Fund (DSP MF) Friday announced the launch of Endurance SIF, an investment platform tailored for seasoned investors seeking more than conventional mutual fund offerings. Positioned as a middle ground between traditional mutual funds and high-ticket portfolio management services, Endurance SIF combines the flexibility of custom strategies with the oversight of a regulated framework. 

“Endurance, as the name suggests, aims to apply first principles of investing and risk management to offer an absolute returns approach to investors and help them stay invested for the long term, so that they reap the advantage of compounding. Here, we will draw upon our 28 years of mutual fund expertise and the last 12 years of hedge fund expertise that some of our global investors have taken advantage of,” said Kalpen Parekh, managing director & CEO, DSP Mutual Fund.

What are SIFs?

In a reflection of the growing maturity of Indian investors, the Securities and Exchange Board of India recently introduced Specialised Investment Funds (SIFs). SIFs aim to offer exposure to advanced investment strategies typically beyond the reach of traditional mutual funds. With a minimum investment requirement of ₹10 lakh, SIFs are designed to cater to individuals looking for more sophisticated investment opportunities.

SIFs are structured to allow investments across a range of asset classes, including equities, fixed income, real estate, investment trusts, and derivative instruments such as futures and options. Unlike traditional mutual funds that are typically benchmark-oriented, SIFs follow an absolute return approach. This means fund managers can adopt flexible strategies to meet a specific return goal, irrespective of how the broader market is performing.

What makes SIFs stand out is that they are being introduced under the mutual fund umbrella. This ensures that they benefit from the strict regulatory oversight, strong governance structures, and operational transparency that govern mutual funds in India. Additionally, this structure allows them to tap into the well-established mutual fund distribution networks, making them more accessible to informed investors while retaining robust safeguards through the Investment Management Committee’s oversight.

According to industry experts, SIFs will serve as a hybrid solution, offering the sophistication of high-net-worth investment options such as Category III Alternative Investment Funds (AIFs) or Portfolio Management Services (PMS), but at a lower threshold. While AIFs typically require a minimum investment of ₹1 crore, SIFs bring similar strategic flexibility to a broader pool of investors by lowering the entry point to ₹10 lakh. This will help democratise advanced investment strategies without compromising on regulatory compliance or investor protection.