The debate around Specialised Investment Funds (SIFs) has largely centred on one question: Where will the money come from? Will investors shift from mutual funds? Will SIFs eat into AIFs? Or will the category attract fresh capital?
That question took centre stage during a panel discussion at the Cafemutual SIF Summit 2026 in Bengaluru, where Prem Khatri, Founder and CEO of Cafemutual, moderated a conversation with Aditya Agarwal, Founder of Wealthy, Ashish Sethiya, Head of Business Development at AssetPlus and Srikanth Matrubai, Founder of SriKavi Wealth.
While the discussion covered existing mutual funds, AIFs and direct equity investments, the panellists focused on one asset class – bank fixed deposits. They believe this is where the new category’s biggest opportunity lies.
“Check any client’s portfolio. 99% of them have an FD,” said Matrubai.
His point was simple. Instead of focusing only on investors who already own mutual funds, distributors should also look at clients who have accumulated sizable fixed deposits over the years but remain hesitant to move beyond traditional savings products and methods.
Sethiya pointed to the scale of the opportunity. According to him, nearly Rs. 200 lakh crore of household savings is still invested in fixed deposits. While SIFs are expected to attract money from existing equity portfolios and even AIFs, he believes fixed deposits could emerge as one of the largest sources of fresh inflows into the category.
“We believe a lot of money will come from fixed deposits. That’s why such a massive amount of money can come into this category,” Sethiya said.
Agarwal also believes SIFs will attract both fresh capital and money from portfolio rebalancing, rather than relying on one source alone.
“We have so much household savings that both kinds of money will come. New money will also come and some rebalancing will also happen,” Agarwal said.
The panel, however, made an important distinction. Selling SIFs to an equity investor is very different from introducing the product to someone who has relied on fixed deposits for years.
For an FD investor, the conversation is rarely about generating the highest possible return. It is about preserving capital while seeking a better investment experience. That is why distributors should spend less time explaining product features and more time helping investors understand where SIF fits into their financial journey, the panellists said.
Matrubai said he avoids discussing complex investment strategies with clients. Instead, he relies on simple analogies.
“I tell them SIF is like an impact player in an IPL match. Depending on market conditions, the fund manager can send in a bowler or a batsman,” he said. He believes such analogies make it easier for investors to understand the product without getting into technical discussions.
Moreover, the discussion highlighted why independent mutual fund distributors may have an advantage in the current time.
According to the panellists, many banks are yet to actively distribute SIFs because many bankers have not completed the mandatory certification. That gives MFDs an opportunity to build product expertise and start investor conversations before larger distribution channels become more active.
Calling it “MFDs’ Amrit Kaal”, Matrubai urged distributors to make the most of the opportunity.
“This is your golden opportunity to get all that FD money, all that conservative money,” he said.
As the session concluded, one message stood out.
The future of SIFs may depend as much on bringing first-time market participants out of fixed deposits as it does on attracting money from existing investment products. If distributors can bridge that gap, the category’s biggest source of growth may already be sitting in their clients’ bank accounts.
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