A Specialised Investment Fund (SIF) is a SEBI-regulated investment vehicle introduced under the SEBI Mutual Fund Regulations (effective April 1, 2025).
It is designed as a bridge category between traditional retail Mutual Funds (MFs) and high-ticket Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs).
A Specialised Investment Fund (SIF) is a SEBI-regulated investment vehicle introduced under the SEBI Mutual Fund Regulations (effective April 1, 2025).
SIFs allow Asset Management Companies (AMCs) to offer more flexible, strategy-driven pooled portfolios—such as long-short equity, sector rotation, and derivative hedging—while operating under the structural oversight, daily NAV transparency, and favorable tax regime of mutual funds.SIFs allow Asset Management Companies (AMCs) to offer more flexible, strategy-driven pooled portfolios—such as long-short equity, sector rotation, and derivative hedging—while operating under the structural oversight, daily NAV transparency, and favorable tax regime of mutual funds.
A Specialised Investment Fund (SIF) is a SEBI-regulated investment category introduced to bridge the gap between traditional Mutual Funds (MFs) and Portfolio Management Services (PMS).
It allows Asset Management Companies (AMCs) to offer more sophisticated, strategy-driven products—such as long-short equity positions, sector rotation, and derivative hedging—while maintaining mutual fund-style tax efficiency and regulatory oversight.
Key Features & Rules
Minimum Investment: ₹10 Lakh per investor (at the PAN level) across SIF strategies of a single AMC. (Accredited investors are exempt from this floor).
Derivatives & Shorting: Unlike traditional mutual funds, SIFs can take unhedged short positions (up to 25% of the portfolio via derivatives) to generate returns or manage risk in falling markets.
Asset Class Coverage: Investments can be allocated across equities, debt, commodity derivatives, REITs, and InvITs.
Structure & Liquidity: Offered as open-ended or interval funds, though redemptions may carry notice periods (up to 15 days) depending on the strategy.
SIF vs. Mutual Funds vs. PMS vs. AIF
| Feature | Mutual Funds | SIF (Specialised Investment Fund) | PMS (Portfolio Management Services) | AIF (Alternative Investment Fund) |
| Target Audience | Retail Investors | High-Net-Worth / Experienced Investors | High-Net-Worth Individuals (HNIs) | Very High-Net-Worth / Institutional |
| Min. Investment | ₹100 / ₹500 | ₹10 Lakh | ₹50 Lakh | ₹1 Crore |
| Shorting/Hedging | Very Restricted | Permitted (Up to 25% derivatives) | Allowed | Fully Permitted |
| Tax Treatment | Pass-through / MF Capital Gains | MF Capital Gains Taxation | Individual Security Tax Basis | Pass-through / Trust Rules |
Key SIF Categories
Equity Long-Short Strategies: Focuses on listed equities while taking derivative short positions to capture downward price movements or hedge volatility.
Sector Rotation Long-Short: Dynamically shifts weightings between top-performing sectors (e.g., Banking, IT, Auto) based on market cycles.
Multi-Asset / Dynamic Allocator: Adjusts capital allocation between debt, equity, commodities, and real estate instruments based on market valuations.
SIFs suit experienced investors with a minimum of ₹10 lakh to allocate, who seek PMS-like derivative strategies with lower entry barriers and mutual fund tax benefits.
Expected Return Profiles by SIF Strategy
Equity Long-Short SIFs: Target 12% – 18%+ CAGR over long cycles. Designed to deliver equity-like upside during bull runs while using short derivatives to mitigate losses during market corrections.
Hybrid / Dynamic SIFs: Target 8% – 12% CAGR. Combine long equity, fixed-income debt instruments, and dynamic derivative hedging for balanced growth with minimal drawdowns.
Fixed-Income SIFs: Target 7% – 9% CAGR. Focus primarily on corporate bonds and debt derivatives to outperform standard bank FDs through tactical duration management.
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