Specialised Investment Funds (SIFs) are a new category introduced by SEBI that allows mutual fund houses to offer more flexible strategies to investors with a higher risk appetite.
Why Were SIFs Introduced?
Traditionally, investors had to choose between mutual funds (low minimum, standardised strategies) and Portfolio Management Services or AIFs (higher minimums of ₹50 lakh and ₹1 crore). SIFs fill this gap with a minimum investment of ₹10 lakh per investor across an AMC's SIF strategies.
What Makes SIFs Different?
- Flexibility to use strategies such as long-short equity or active asset allocation
- Limited use of derivatives for hedging and short positions, within SEBI limits
- Mutual fund–style regulation, governance and disclosures
Who May Consider SIFs?
SIFs may suit experienced investors with larger portfolios who understand the strategy and its risks, and who want diversification beyond conventional equity and debt funds.
Points to Evaluate Before Investing
- The investment strategy and how it makes money
- The risk band disclosed by the AMC
- Liquidity — redemption frequency and notice periods
- Costs and the fund manager's experience
SIFs should complement, not replace, a well-diversified core portfolio. Speak with our team to understand whether a SIF strategy fits your goals.
