Lot of Investors, who despite invests as a long-term investor, panics when there is significant market volatility, especially investors in their start of investment journey would not have much confidence or experience of handling volatility; In many cases when new investors witness significant volatility or low return in their initial investments, they exit mostly in losses or low single digit return.

Their Confidence in Equity market goes off and they try to stay away for longer period outside equity markets.

One more segment of Investors who have stayed long term are worried about valuation, When valuation gets stretched, they want to Exit but tax concerns keep them stay invested.

Now SIF - Specialized In­vestment fund helps both new as well as seasoned investors. Given the SIF structure which allows short, fund manager has an investment tool to hedge the market downside and also can gain from market down­side and ride volatility much more comfortably. This allows new investors an smooth invest­ment journey.

For an seasoned investors, when valuation gets stretched, no need to manually rebalance the portfolio as long short SIF fund would take short and reduce equity exposure and this will not have any negative tax implication for the seasoned investors, As an SIF Distributor I feel this will be a great segment in coming days as more and more SIF products gets launched.