They may have the trappings of products for corporate treasuries and wealthy family offices, but specialized investment funds (SIFs) are finding buyers well beyond that circle. The ₹10 lakh entry threshold is attracting a growing pool of affluent individuals, many of whom have built wealth since the covid market rally and become more confident about their investment choices, said Radhika Gupta, managing director and chief executive of Edelweiss AMC, in an interview with Mint.
“Our asset base is not dominated by corporate money. While we have some family offices, much of it comes from hundreds of individual ₹10 lakh transactions.”
The category is still in its early stages but has already crossed ₹40,000 crore in industry-wide assets, with Edelweiss leading at more than ₹14,000 crore, Gupta said. The fund house added over 100,000 investor accounts in its first year. Building a new category has brought its share of challenges, from distributor onboarding to concerns around derivatives, but growing financial awareness is helping drive adoption, she added.
“The response has been amazing and, quite frankly, overwhelming,” Gupta said. SIFs have also had to prove themselves in a difficult market. Funds launched in October had to navigate January-March, she said, likening the experience to cricketers facing Jasprit Bumrah on a difficult pitch.
“When markets fell 10-11% in March, SIFs declined just 1-2%, helping investors see their value. Delivering results in a year when both equities and bonds struggled builds conviction.”