SIFs attractive for long-term investors with ₹10 lakh threshold: ICICI Prudential’s Sankaran Naren
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Sankaran Naren, Executive Director and Chief Investment Officer at ICICI Prudential Asset Management Company, has outlined the investment case for Specialised Investment Funds (SIFs), a new category introduced by the Securities and Exchange Board of India (Sebi) under the mutual fund framework in 2025.
SIFs are aimed at investors with a minimum investment of ₹10 lakh and are designed to offer fund managers greater flexibility compared with traditional mutual fund schemes. The category allows the use of derivative strategies within a regulated structure, enabling more sophisticated portfolio construction and enhanced risk management amid changing market conditions.
7 types of SIF strategies are permitted
Under Sebi’s framework, seven types of SIF strategies are permitted—three in equity, two in hybrid and two in debt. According to Naren, this structure gives fund managers significantly more freedom, particularly in deploying derivatives, which can help manage volatility and improve risk-adjusted returns.
Naren said the launch of SIFs comes at a time when investors are operating in what he described as a “moderate return environment”. Over the past few years, he noted, asset allocation has gained prominence as markets have become more expensive and return expectations more subdued.
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“In a moderate return environment, investment vehicles that provide greater flexibility to fund managers can be particularly relevant,” Naren said, adding that SIFs could be an attractive option for investors who meet the ₹10 lakh threshold and are willing to take a long-term view.
ICICI Prudential Asset Management is considering launch of 2 SIF schemes
ICICI Prudential Asset Management is considering the launch of two SIF schemes in the near term—an equity-focused ISIF Equity X Top 100 Longshot Fund and an ISIF Hybrid Longshot Fund. These offerings are expected to leverage the broader investment toolkit available under the SIF category.
Naren said long-term investors looking for differentiated strategies in a market that is “not very cheap” may find SIFs worth considering. He also highlighted ICICI Prudential AMC’s large and experienced investment team, which has built expertise across equity, hybrid and multiple strategy funds over the past decade.
SIF framework
According to him, the SIF framework allows asset management companies to deploy this expertise more effectively within a regulated mutual fund structure. “The flexibility provided by Sebi through specialised investment funds enables fund managers to use a wider set of strategies while remaining within the mutual fund ecosystem,” Naren said.
He added that as investors become more aware of the category, SIFs could play a meaningful role in portfolios of suitable investors seeking more nuanced approaches to risk and return over the long term.
The board of directors of ICICI Prudential Asset Management Company has approved the reappointment of Sankaran Naren as executive director for a further term of two years, the company said in an exchange filing on Wednesday.