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KISIF’s or Specialized Investment Funds in Mutual funds, do you what they are & should you invest or not? Watch the video till the end to understand,
Lets say when markets are falling; your mutual funds will also fall. They might fall less or more than the markets but they will also fall because MF’s are not allowed to take a short position in the markets, which means an investment which can make money in the mutual fund when the markets fall.
Here’s come SIF to solve the problem.
SIF is a mutual fund, which is allowed to have 25% unhedged derivative position. In simple language, 25% of the fund can be short on the market & make money when the markets are falling. & the best part is that in general derivative income is taxed at slab rates but in mutual funds will be taxed as capital gains so instead of 30%, it will be 12.5%
There are 3 funds in SIF currently available,
Quant Equity Long Short Fund - Assume it to be a Flexicap fund which can do 25% derivatives
SBI Magnum Hybrid Long Short Fund - Assume it to be a BAF which can do 25% derivatives
Edelweiss Hybrid Long Short Fund - Assume it to be BAF which can do 25% derivatives
In the next video I will explain each of these funds. Do follow ☺
#sif #derivatives #mutualfundssahihai #mutualfundsindia #mutualfunds #mutualfund
@kirtanshahcfp
