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By:

Akhilesh Sinha

25 June 2025 at 2:53:54 pm

India's multi-align diplomacy triumphs

New Delhi: West Asia has transformed into a battlefield rained by fireballs. Seas or land, everywhere echoes the roar of cataclysmic explosions, flickering flames, and swirling smoke clouds. et amid such adversity, Indian ships boldly waving the Tricolour navigate the strait undeterred, entering the Arabian Sea. More remarkably, Iran has sealed its airspace to global flights but opened it for the safe evacuation of Indians.   This scene evokes Prime Minister Narendra Modi's memorable 2014...

India's multi-align diplomacy triumphs

New Delhi: West Asia has transformed into a battlefield rained by fireballs. Seas or land, everywhere echoes the roar of cataclysmic explosions, flickering flames, and swirling smoke clouds. et amid such adversity, Indian ships boldly waving the Tricolour navigate the strait undeterred, entering the Arabian Sea. More remarkably, Iran has sealed its airspace to global flights but opened it for the safe evacuation of Indians.   This scene evokes Prime Minister Narendra Modi's memorable 2014 interview. He stated that "there was a time when we counted waves from the shore; now the time has come to take the helm and plunge into the ocean ourselves."   In a world racing toward conflict, Modi has proven India's foreign policy ranks among the world's finest. Guided by 'Nation First' and prioritising Indian safety and interests, it steadfastly embodies  'Vasudhaiva Kutumbakam' , the world as one family.   Policy Shines Modi's foreign policy shines with such clarity and patience that even as war flames engulf West Asian nations, Indians studying and working there return home safe. In just 13 days, nearly 100,000 were evacuated from Gulf war zones, mostly by air, some via Armenia by road. PM Modi talked with Iran's President Masoud Pezeshkian to secure Iran's airspace for the safe evacuation of Indians, a privilege denied to any other nation. Additionally, clearance was granted for Indian ships carrying crude oil and LPG to pass safely through the Hormuz Strait. No other country's vessels are navigating these waters, except for those of Iran's ally, China. The same strategy worked in the Ukraine-Russia war: talks with both presidents ensured safe corridors, repatriating over 23,000 students and businessmen. Iran, Israel, or America, all know India deems terrorism or war unjustifiable at any cost. PM Modi amplified anti-terror campaigns from UN to global platforms, earning open support from many nations.   Global Powerhouse Bolstered by robust foreign policy and economic foresight, India emerges as a global powerhouse, undeterred by tariff hurdles. Modi's adept diplomacy yields notable successes. Contrast this with Nehru's era: wedded to Non-Aligned Movement, he watched NAM member China seize vast Ladakh territory in war. Today, Modi's government signals clearly, India honors friends, spares no foes. Abandoning non-alignment, it embraces multi-alignment: respecting sovereignties while prioritizing human welfare and progress. The world shifts from unipolar or bipolar to multipolar dynamics.   Modi's policy hallmark is that India seal defense deals like the S-400 and others with Russia yet sustains US friendship. America bestows Legion of Merit; Russia, its highest civilian honor, Order of St. Andrew the Apostle. India nurtures ties with Israel, Palestine, Iran via bilateral talks. Saudi Arabia stands shoulder-to-shoulder across fronts; UAE trade exceeds $80 billion. UN's top environment award, UNEP Champions of the Earth, graces India, unlike past when foreign nations campaigned against us on ecological pretexts.   This policy's triumph roots in economic empowerment. India now ranks the world's fourth-largest economy, poised for third in 1-2 years. The 2000s dubbed it 'fragile'; then-PM economist Dr. Manmohan Singh led. Yet  'Modinomics'  prevailed. As COVID crippled supply chains, recession loomed, inflation soared and growth plunged in developed countries,  Modinomics  made India the 'bright star.' Inflation stayed controlled, growth above 6.2 per cent. IMF Chief Economist Pierre-Olivier Gourinchas praised it, advising the world to learn from India.

SIFs: A Modern Investment Product

A modern long-short investment product is here - one that blends the trust and discipline of mutual funds with the sophisticated flexibility of hedge-fund-style strategies. SEBI’s newly approved Specialised Investment Funds (SIFs) mark the next evolution in wealth-building vehicles for high-net-worth investors.


For decades, Indian investors had to choose between two ends of the spectrum - mutual funds, which are long-only, and Portfolio Management Schemes (PMS) / Alternative Investment Funds (AIF) structures, which offer wider strategy flexibility but operate in a higher-ticket segment. SIFs now bridge this gap, offering the best of both worlds: institutional-grade long-short investing within a mutual-fund-like regulatory structure. They offer professional investors access to advanced investment strategies within a regulated, transparent structure.


What makes SIFs different?

Unlike traditional funds that profit only when markets rise, SIFs allow fund managers to take both long and short positions - with up to 25% of the portfolio allowed as pure short exposure. This provides the ability to potentially generate returns not only in strong markets, but also during downturns and sideways phases. Where long-only funds may struggle in non-directional markets, SIFs can tactically deploy options, futures, spreads, and sector rotations to seek alpha and manage downside risk.


This makes SIFs uniquely suited for three market regimes:• Strong or trending markets• Sideways or range-bound markets• Volatile periods


Who can launch and who can invest?

Only SEBI-regulated mutual fund houses can launch SIFs - ensuring governance, oversight, and track record. These funds are not for retail investors. They are meant for HNI and sophisticated investors, with a minimum ticket size of ₹10 lakh across SIF strategies (PAN-level).


Portfolio design and risk management

SIFs may invest across equity, debt, and hybrid strategies, including long-short models, hedged books, and tactical derivative positions. To enhance transparency, SIFs must disclose a ‘risk-band’ indicating potential volatility - helping investors understand the strategy’s risk level before committing capital.


What should investors expect?

Performance in SIFs will depend heavily on manager skill, risk discipline, and market structure. In sharp bull markets, they may lag pure equity funds due to hedges. However, in volatile or range-bound conditions, they can potentially deliver superior stability and improved risk-adjusted returns. Basically, their ability to protect downside and capture tactical spreads can provide meaningful stability and alpha.


Think of them as smart shock absorbers - built to accelerate during favourable phases while controlling the skid when markets turn unpredictable.


A new era for Indian portfolios

SIFs represent India’s move toward globally practiced, innovation-driven, risk-aware investing. For investors seeking smarter diversification, volatility management, and tactical alpha, SIFs may become a powerful addition to modern portfolios. The era of next-generation investing in India has officially begun - and SIFs could well become the flagship vehicle for sophisticated wealth creation in the years ahead.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.  Views personal. He could be reached on 9833133605.)

 

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