Bandhan AMC gets SEBI's nod to launch SIFs; new products to be launched on Arudha SIF platform

Bandhan AMC Limited (Bandhan AMC) has secured approval from the Securities and Exchange Board of India (SEBI) to launch Specialised Investment Funds (SIFs), marking its foray into an evolving segment of the asset management space. The approval allows the Mumbai-based fund house to design and roll out innovative equity, debt, and hybrid strategies — including unhedged short derivative positions — tailored for sophisticated investors seeking differentiated risk-return profiles.

The new suite of products will be introduced under the “Arudha SIF” platform. The term Arudha signifies ascent and progress, reflecting Bandhan AMC’s vision of helping investors move beyond conventional mutual funds to more advanced investment avenues. Positioned as a natural progression, Arudha SIF aims to meet the needs of investors ready to take the next step in their wealth-creation journey through specialised strategies that go beyond traditional fund structures.

SIFs and investment

Unlike traditional mutual funds, SIFs offer greater flexibility for fund managers while still operating within a strong regulatory framework. These funds allow for interval schemes, where investors can subscribe daily but redeem only on specific days — for instance, twice a week. This gives managers the breathing space to execute complex strategies involving lower-liquidity assets, while still ensuring governance and oversight similar to mutual funds. Some equity-focused SIFs, however, may allow daily redemptions.

Bandhan AMC plans to leverage this structure to craft strategies that combine equities, debt, hybrids, and short derivative positions. These products are designed for investors who want exposure to both traditional and non-traditional strategies under a familiar trust structure, but with the added sophistication of custom risk-return trade-offs.

Speaking on the launch, Vishal Kapoor, CEO of Bandhan AMC, said: “As markets deepen and investor aspirations rise, there is growing demand for solutions beyond mutual funds, AIFs, and PMS — but still within a strong regulatory framework. Arudha SIF has been created to meet this need, offering evolved strategies for investors who want to advance their approach. Its launch is an important milestone for Bandhan AMC and for investors ready to explore new avenues of wealth creation.”

SIF vs MF vs AIFs

Specialised Investment Funds are gaining traction in India as a middle ground between mutual funds and alternative investment funds (AIFs). While AIFs are known for greater flexibility, they also carry heavier taxation and regulatory complexity. SIFs, by contrast, are launched under the mutual fund trust structure, overseen by trustees and audited with the same rigour, but with more flexible redemption structures and strategy options.

Bandhan AMC is not alone in entering this space. Just last month, Quant Mutual Fund became the first asset management company in India to secure SEBI approval for an SIF. Its QSIF Equity Long-Short Fund allows long-short strategies across equity, debt, and hybrid categories, enabling the fund to buy stocks expected to rise and short those likely to fall. This approach reduces risk while potentially delivering superior returns — particularly in volatile markets.

With SEBI’s green signal, Bandhan AMC is now set to bring its Arudha SIF platform to market. The move underscores the growing importance of specialised strategies in India’s asset management industry, catering to investors who demand both innovation and regulatory comfort as they look for more evolved pathways to build wealth.