New Delhi, Sept. 20 -- Mutual funds are rolling out specialized investment funds (SIFs) with a minimum Rs.10 lakh ticket size, but the product faces a distribution hurdle. Only a fraction of India's 1.8 lakh mutual fund sellers are qualified to distribute this product to the end consumer, given the tougher derivatives exam required to sell them.

There is a mandatory hurdle to be cleared-the National Institute of Securities Markets' NISM XIII (derivatives) exam to get a permit for SIF distribution. The exam is a tougher nut to crack as compared to the mutual fund distributor exam, the NISM VA, multiple industry participants told Mint.

There are over 1,000 distributors who have cleared the NISM XIII derivatives exam and applied for SIF re...