Can I Manage SIFs Through Mutual Fund Software.pdf

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:

1. 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)?

2. 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)
• More flexibility in strategy: SIFs can invest in equity, debt, hybrid,
derivatives, sectoral strategies, etc.
• Redemption / liquidity: They may be structured as open, close‐ended, or
interval funds; redemption frequencies may vary (daily, weekly, or as
defined)
• Regulation & oversight: They operate under mutual fund trust structure
and SEBI regulations, with governance, disclosures, trustee oversight,
audits, etc.
• 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.

3. • If your software can manage different asset classes (MF, PMS, alternatives,
SIF), you become more sticky and indispensable to clients.
• 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).
• 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:

4. Function Description
Enter New Investment (SIF
strategy / scheme)
Record when a client invests in an SIF strategy
(amount, units, date)
Valuation / Mark-to-Market
(PMS / Alt Investment
Valuation)
Update current values of SIF holdings — partly
via NAVs / market quotes, partly via manual
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 &
Dashboard
Combine SIF holdings with mutual funds, PMS,
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)

5. 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.
• Cleaner, error-reduced operations: Bulk uploads, validation rules,
template checks — fewer human errors than manual work.
• Faster reporting: Client statements, performance reports, dashboards —
generate instantly.
• Transparency & audit trail: Every change is logged — good for compliance
and trust.
• Scalability: When you handle many clients and many SIF strategies,
manual work breaks down; software scales.
• Client satisfaction: You can show clients consolidated performance,
graphs, trends, risk metrics — builds trust.
• Better advisory insights: With consolidated data, you can spot under‐ /
over‐exposures, rebalancing opportunities, etc.
• Time savings: Less manual reconciliation, data collation, copying between
systems.
• Professional image: Offering clients a polished dashboard and reports
reinforces your brand as a serious wealth manager, not just an MF
distributor.

6. 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: [phone]