4. What makes SIF different from Mutual Funds ?

SIFs can take long and short positions, benefiting from rising and falling markets. SIFs cover downside risk by utilizing strategies previously restricted to hedge funds and PMS, such as long-short equity, derivative hedging, and dynamic asset allocation . Unlike traditional “LONG ONLY” mutual funds, SIFs can act defensively during market downturns to PROTECT CAPITAL, making them suitable for a volatile market. LONG SHORT STRATEGIES : SIFs can simultaneously buy stocks expected to rise (LONG) and SHORT sell stocks expected to fall. This allows the fund to generate positive returns or limit losses even in a falling market. DERIVATIVE HEDGING: SIFs use derivatives- such as FUTURE AND OPTIONS – to “HEDGE” or protect the portfolio against market volatility. For instance, they may buy put options to limit potential losses. ACTIVE DOWNSIDE MANAGEMENT: SIFs are permitted to have up to 25% of their net assets in unhedged, short positions, enabling managers to take a negative view on overvalued or weak stocks. DYNAMIC ASSET ALLOCATIONS: SIFs can shift investments between equities, debt, commodities, and REITs based on market conditions, allowing them to move to safer assets during a downturn.