Can I Manage SIFs Through Mutual Fund Software?
Managing multiple asset classes is an important responsibility for mutual fund distributors (MFDs). That’s why many use mutual fund software — to stay organized, scale operations, and serve clients better. But in today’s world, HNIs (High Net Worth Individuals) often invest not just in mutual funds, but also in PMS (Portfolio Management Services) and the newly introduced SIFs (Specialized Investment Funds). So the question arises: Can Software Manage SIFs too? In this guest post, let’s walk through what SIFs are, how they compare with PMS / alternative investments, whether software can support them, what functions should be supported, the benefits, and ultimately whether this makes sense for you as a distributor. What is a Specialized Investment Fund (SIF)?
Before we see how software offered by REDVision Technologies can help, let’s first understand SIFs in simple terms. SIF = Specialized Investment Fund It’s a new asset‐class / product category recently introduced by SEBI in India, aimed to bridge the gap between traditional mutual funds and PMS. Here are key characteristics: •
Minimum investment: ₹10 lakh (across all SIF strategies, per investor)
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More flexibility in strategy: SIFs can invest in equity, debt, hybrid, derivatives, sectoral strategies, etc.
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Redemption / liquidity: They may be structured as open, close‐ended, or interval funds; redemption frequencies may vary (daily, weekly, or as defined)
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Regulation & oversight: They operate under mutual fund trust structure and SEBI regulations, with governance, disclosures, trustee oversight, audits, etc.
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Investment limits / risk controls: Derivative exposure caps, single‐issuer limits, risk grading are part of the rules.
Because of this hybrid nature, they are especially interesting for HNIs or “mass affluent” investors who want sophistication but don’t want (or can’t meet) PMS minimums. Why You, as an MFD, Should Care About SIFs You might think: “I deal with mutual funds — why worry about SIFs?” Here are reasons: •
Some of your HNI clients will ask for SIF exposure; you’ll want to service them end to end.
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If your software can manage different asset classes (MF, PMS, alternatives, SIF), you become more sticky and indispensable to clients.
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It lets you offer better reporting, consolidated dashboards, and tax / performance tracking across all holdings, not just mutual funds.
So yes — it’s in your interest to support SIFs in your workflow. Can Mutual Fund Software for IFA Support SIFs? Short answer: Yes — with the right capabilities. But there’s a nuance: you will not generally “execute subscription / redemption” of SIFs directly from the software (unless your software has integration with AMCs / custodian / clearing systems). What you can do is manage the records, track valuations, record transactions, and produce consolidated reporting. Let’s break this down: What software can’t do (in most cases) •
Let clients invest directly (i.e. subscription / redemption orders) into SIFs via your platform (unless you build or integrate with the execution infrastructure).
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Automatically fetch live NAVs or valuations for illiquid parts (e.g. private assets) unless AMCs / custodians provide feeds.
What software should allow (and what mature platforms already allow) A robust Mutual Fund Software for IFA / wealth management software should support SIF management under a PMS / alternate investments module. Some of the key functions are:
Function
Description
Enter New Investment (SIF Record when a client invests in an SIF strategy strategy / scheme) (amount, units, date) Valuation / Mark-to-Market Update current values of SIF holdings — partly (PMS / Alt Investment via NAVs / market quotes, partly via manual Valuation) inputs or custodian feeds Update Current Value
Allow manual override / adjustments (for illiquid / private components)
Update / Delete Transaction
Correct mistakes, delete transactions, add supplementary info
Bulk Upload
Upload many SIF investment / transaction records via spreadsheet or template
Consolidated Reporting & Combine SIF holdings with mutual funds, PMS, Dashboard alternative assets in a single client view To be clear: managing SIFs is similar to how many sophisticated PMS / alternate investment software solutions handle private equity, hedge funds, real estate, etc. The “software layer” is about record‐keeping, consolidation, valuation, and reporting — not necessarily executing trades. So yes — if your back office software has a PMS / alternate investments module (or is extensible), it can support SIFs. Benefits of Managing SIFs via Software (vs Manual / Spreadsheet)
Why go the software route rather than Excel / offline ledger? Here are key benefits you can highlight when pitching this to MFDs: •
Single dashboard for all assets: Your mutual funds, PMS, SIFs, and alternate assets live under one roof — no more jumping between tools.
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Cleaner, error-reduced operations: Bulk uploads, validation rules, template checks — fewer human errors than manual work.
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Faster reporting: Client statements, performance reports, dashboards — generate instantly.
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Transparency & audit trail: Every change is logged — good for compliance and trust.
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Scalability: When you handle many clients and many SIF strategies, manual work breaks down; software scales.
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Client satisfaction: You can show clients consolidated performance, graphs, trends, risk metrics — builds trust.
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Better advisory insights: With consolidated data, you can spot under‐ / over‐exposures, rebalancing opportunities, etc.
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Time savings: Less manual reconciliation, data collation, copying between systems.
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Professional image: Offering clients a polished dashboard and reports reinforces your brand as a serious wealth manager, not just an MF distributor.
Conclusion Yes — you can manage SIFs through mutual fund / distributor software, provided the software has a PMS / alternate investment module (or is extensible). While the software may not execute orders (unless integration is built), it can fully support managing them. If you’re evaluating or building software, insist that it accommodates SIFs (along with mutual funds, PMS, and alternate assets). Your clients — and your competitive edge — depend on it. Address: REDVision Asia Center, 45, Hare Krishna Vihar, Behind Advanced Academy School, Nipania, Indore, Madhya Pradesh 452010 Mobile: 9039822000
