Page 23 - Banking Finance February 2026

MUTUAL FUND

weiss Asset Management Company,
said the financial services sector is ben- ICICI Prudential Mutual Fund to grandfather two
efiting from structural trends such as fund-of-funds schemes under SEBI framework
rising consumption, financialisation of ICICI Prudential Mutual Fund has announced that it will grandfather two of
savings, favourable demographics and its fund-of-funds (FoF) schemes under the Securities and Exchange Board of
rapid digital adoption, creating long- India's (SEBI) revised framework, with effect from January 27, 2026. The
term investment opportunities across schemes are ICICI Prudential Passive Multi-Asset Fund of Fund and ICICI Pru-
the sector. dential Global Advantage Fund (FoF).
The asset management company informed unitholders through a notice-
Union Mutual Fund enters cum-addendum that the decision follows SEBI's communication to the As-
SIF space with launch of sociation of Mutual Funds in India (AMFI) dated February 6, 2025, on the
framework for launching FoF schemes with multiple underlying funds. The
Arthaya SIF
move is also based on subsequent amendments and clarifications, including
Union Mutual Fund has announced its SEBI's letter dated January 20, 2026, which permitted grandfathering of
entry into the Specialized Investment certain existing schemes.
Fund (SIF) segment with the launch of
Arthaya SIF, a new platform offering According to the notice, the two schemes could not be classified under any
purpose-led, actively managed invest- of the categories specified in the revised FoF framework due to their exist-
ing investment objectives and asset allocation structures. As a result, SEBI
ment strategies across equity, hybrid
and fixed income categories. The ini- has allowed them to continue in their current form under the grandfathering
tiative marks a strategic expansion of provision.
the AMC's product portfolio. The fund house clarified that the grandfathering ensures continuity for ex-
isting investors while remaining compliant with regulatory requirements,
Arthaya SIF is positioned between tra-
ditional mutual fund offerings and high- without altering the schemes' stated objectives or portfolio construction.
ticket alternatives such as portfolio
management services and alternative pose, in line with changing investor According to the fund house, the sec-
investment funds. According to the preferences. tor rotation strategy aims to capture
fund house, the platform is designed to sector-level alpha rather than focusing
provide sharper, more flexible strate- Jio BlackRock Mutual solely on individual stock selection.
gies aligned with specific investor out- Unlike flexicap or diversified equity
comes and long-term objectives. Fund launches sector rota- funds that typically follow a bottom-up
The name 'Arthaya' is derived from the tion equity fund approach, the new scheme adopts a
Sanskrit word 'Artha', meaning wealth, Jio BlackRock Mutual Fund has an- top-down framework, dynamically re-
allocating capital across sectors based
and reflects the AMC's philosophy of nounced the launch of the Jio
purposeful wealth creation rooted in BlackRock Sector Rotation Fund, a on changing macroeconomic and mar-
Indian values with a modern invest- new equity scheme designed to dy- ket conditions.
ment outlook. The platform aims to namically adjust sector exposure The fund is positioned as a comple-
cater to investors seeking customised across market cycles. The fund will be ment to core equity allocations, offer-
and outcome-oriented portfolios with- powered by BlackRock's Systematic ing investors an additional tool to navi-
out moving entirely into alternative Active Equities (SAE) investment ap- gate market volatility and evolving
investment structures. proach. economic trends. Used alongside tra-
ditional equity strategies, the sector
Madhu Nair, CEO of Union AMC, said The new fund offer (NFO) will open for
the launch allows the fund house to subscription on January 27 and close on rotation approach is expected to en-
participate in a fast-evolving invest- February 9. The scheme will be hance diversification and improve risk-
ment segment and offer differentiated benchmarked against the Nifty 500 adjusted returns over time.
strategies that balance flexibility, ac- Index TRI and managed by Tanvi The fund house said the scheme is
tive management and clarity of pur- Kacheria and Sahil Chaudhary. suited for investors seeking an incre-

20 | 2026 | FEBRUARY | BANKING FINANCE