Platinum SIF By Mirae Asset Files SEBI Draft Papers For Sectoral Debt Long-Short Fund

Platinum SIF by Mirae Asset has submitted draft papers to the Securities and Exchange Board of India (SEBI) for the launch of the Platinum Sectoral Debt Long-Short Fund. The proposed scheme will be the fund house’s second offering under the Specialised Investment Fund (SIF) framework and its first product focused on a sectoral long-short debt strategy.

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The filing comes as asset managers continue to expand their presence in the newly introduced SIF category, which is designed to offer investment strategies beyond those available through traditional mutual funds while operating under SEBI’s regulatory framework.

Interval Investment Strategy Proposed

The Draft Scheme Information Document (SID) submitted to the SEBI has clearly stated that the proposed scheme is going to employ interval investment strategy. In other words, the scheme plans to earn returns by investing both in long and short positions in debt securities in certain sectors.

It would be an active investment strategy wherein the fund manager would have the discretion of adjusting the risks associated with credit and interest rates in accordance with changes in the market dynamics.

Focus On High-Yield Debt Instruments

The draft document states that the scheme will invest predominantly in high-yield debt instruments. These securities generally offer higher returns than top-rated bonds but may carry relatively higher credit risk.

CRISIL Composite Credit Risk Index is the benchmark that has been selected as Tier-I benchmark for the proposed scheme. The benchmark will serve as the primary reference point for evaluating the scheme’s performance after its launch.

The fund’s portfolio construction and sector allocation will depend on prevailing market conditions and the investment strategy adopted by the fund manager within the framework outlined in the draft documents.

Second Offering Under The SIF Platform

The proposed Sectoral Debt Long-Short Fund will become Platinum SIF by Mirae Asset’s second product in the Specialised Investment Fund segment if it receives regulatory approval. It will also be the asset manager’s first offering that follows a debt-focused long-short strategy under the SIF structure.

The Specialised Investment Fund framework has attracted interest from several asset management companies seeking to introduce differentiated investment products with broader portfolio flexibility than conventional mutual fund schemes.

Awaiting Regulatory Approval

The filing with SEBI marks the initial stage of the fund launch process. It is possible for the offer to be made to investors only after the securities regulator reviews the proposal and gives required clearances.

As per the draft SID, applications under the scheme would be made at NAV-based prices on all business days. More information is likely to come out after the process of regulatory review is completed.