Quant Mutual Fund gets SEBI approval for India's first SIF: What is QSIF Equity Long-Short Fund? When will it launch?
Quant Mutual Fund has received an approval from the Securities and Exchange Board of India (SEBI) to launch a Specialized Investment Fund (SIF), becoming the first assets management company in India to launch such funds.
“quant Mutual Fund gets SEBI approval to launch India’s First Long- Short Fund in Newly created SIF (Specialised Investment Fund) category,” the company said in a post on X on Friday.
It also confirmed the news in a newsletter to investors.
QSIF Equity Long-Short Fund: What is it?
The QSIF Equity Long-Short Fund approval comes along with long-short strategies across equity, debt, and hybrid categories. Through this, Quant MF will be able to buy stocks it expects to go up (long positions) and also bet against those likely to fall (short positions). This enables the AMC to lower the risk while providing better returns, which is crucial especially in volatile markets.
Specialized Investment Funds (SIFs), which allow mutual funds to launch advanced investment strategies as open-ended, close-ended and interval structures, will add depth and variety to the investment landscape of the country.
QSIF Equity Long-Short Fund: Launch date
The SIF of Quant Mutual Fund, named QSIF Equity Long-Short Fund, is slated to launch in August this year. This marks a huge milestone in the evolution of India’s asset management landscape.
The SEBI on Tuesday came out with a mechanism for monitoring compliance with minimum investment threshold under Specialized Investment Funds (SIF).
In case of any active breach of the threshold of ₹10 lakh by an investor, including through transactions on stock exchanges or off-market transfers, Sebi said that all units of such investors held across investment strategies of the concerned SIF would be frozen for debit.
Besides, a notice of 30 calendar days would be given to such investors to rebalance the investments in order to comply with the threshold.
“In case an investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with minimum investment threshold,” Sebi said in its circular.
If the investor fails to rebalance the investments within a 30 calendar day period, the frozen units will be automatically redeemed by the AMC, at the applicable Net Asset Value.