SBI MF's Mehta: SIFs Bridge Portfolio Gap for Tax-Efficient Returns

• Gaurav Mehta explains that Structured Investment Funds (SIFs) differ from traditional mutual funds by not being solely market beta-driven and allowing shorting.
• SIFs aim to bridge a portfolio gap, offering low-risk, tax-efficient returns, especially after changes in debt fund taxation.
• Unlike traditional funds, SIFs can benefit from market declines and create risk-reward propositions independent of market direction.
• SIFs provide a middle ground between arbitrage funds and conventional hybrid funds, offering more variability than arbitrage but less volatility than hybrids.
• SIFs target "debt-plus returns with equity taxation" by maintaining a minimum 65% equity exposure and actively using derivatives to manage risk.

Why It Matters: SIFs offer a new investment option for better returns with managed risk, filling a market gap.