To prevent investor confusion between regular mutual funds and Specialized Investment Funds (SIFs), what branding and promotional rules has SEBI established for AMCs launching SIFs?

[ A ]The SIF must use the exact same logo, color palette, and marketing brochures as the AMC's liquid mutual fund schemes.

[ B ]The SIF can only be advertised using celebrity endorsements on national television without risk disclosures.

[ C ]The SIF must have a distinct brand name and logo, maintain a separate website/webpage, and if the sponsor's name is used during the first 5 years, its font size must be equal to or smaller than the SIF brand name.[ CORRECT ]

[ D ]The SIF is entirely exempt from all SEBI advertisement codes and disclosure requirements.

Takeaway

Option C is correct: The SIF must have a distinct brand name and logo, maintain a separate website/webpage, and if the sponsor's name is used during the first 5 years, its font size must be equal to or smaller than the SIF brand name.

Derivation

Under SEBI regulations for Specialized Investment Funds (SIFs), the AMC must ensure clear differentiation from regular mutual funds: SIFs must have a distinct brand name and distinct logo, and maintain a dedicated website or separate webpage. While the sponsor or mutual fund brand name can be referenced for the initial 5 years using phrases like 'brought to you by', its font size must be equal to or smaller than the SIF brand name. SIFs must also strictly follow mutual fund advertising codes. This tests SIF compliance guidelines. A common pitfall is assuming SIFs share the regular MF brand without visual distinction.

Why the others fail

A — The SIF must use the exact same logo, color palette, and marketing brochures as the AMC's liquid mutual fund schemes.

Sharing identical logos and brochures with regular mutual funds is prohibited to prevent confusing retail investors with high-risk SIF strategies.

B — The SIF can only be advertised using celebrity endorsements on national television without risk disclosures.

Celebrity endorsements of specific investment products are prohibited, and risk disclosures are mandatory for all SIF communications.

D — The SIF is entirely exempt from all SEBI advertisement codes and disclosure requirements.

SIFs are fully subject to SEBI's mutual fund advertisement codes, risk profiling, and regulatory disclosure standards.