What is SIF?
Specialised Investment Funds (SIFs) are a new category of investment products introduced by SEBI in 2025. They were created to provide Indian investors with access to more sophisticated, flexible, and diversified strategies that go beyond the scope of traditional mutual funds.
While mutual funds primarily invest in equities, debt, or hybrid schemes with strict diversification limits, SIFs can operate with hedge-fund-style flexibility under SEBI's regulatory framework. They are designed to bridge the gap between:
Too limited for advanced strategies
Too expensive and exclusive for most investors
Think of SIFs as a regulated middle ground — advanced strategies, but with a lower ticket size than PMS and AIFs.
Key Features
What makes SIFs unique in the Indian investment landscape
Minimum Investment
Investors need to commit at least Rs 10 lakh.
Regulation by SEBI
SIFs are tightly governed under SEBI's rules.
Investment Flexibility
SIFs can invest in a broad universe of assets.
Risk Controls
SIFs are allowed up to 25% unhedged short exposure.
SIF vs Other Investment Products
How SIFs compare to Mutual Funds, PMS, and AIFs
| Feature | SIF | Mutual Fund | PMS | AIF |
|---|---|---|---|---|
| TARGETED INVESTORS | HNIs, professionals, retail with high-risk appetite | Retail investors, HNIs, institutional investors | HNIs, UHNIs, family offices | UHNIs, institutions, sophisticated investors |
| STRUCTURE | Pooled fund with advanced strategies | Pooled vehicle investing across equity, debt, hybrid, etc. | Individually managed portfolios tailored to each client | Pooled fund (Cat I, II, III) investing in startups, PE, hedge funds, and special situations |
| MINIMUM INVESTMENT | ₹10 lakh | As low as ₹500 | ₹50 lakh | ₹1 Crore |
| STRATEGIES ALLOWED | Flexible; Long-Short, dynamic asset allocation | Plain vanilla: Equity, Debt, Hybrid, Thematic, Index Funds, ETFs, etc. | Customised strategies per client | PE/VC, Distressed Assets, Hedge Fund-like structures |
| TAXATION | Pass-through taxation (like mutual funds) | Pass-through taxation - LTCG, STCG based on type (Equity: 10% LTCG, 15% STCG; Debt: slab/LTCG rules) | Investor taxed directly on transactions (like direct ownership) | Pass-through for Cat I & II, but Cat III taxed at fund level (trust @ 42.744% in some cases) |
Who Should Invest in SIFs?
For investors seeking growth with controlled volatility.
For those investing Rs 10 lakh or more with a long-term view.
For anyone wanting tax-efficient, professional strategies.
For investors looking for advanced long-short portfolio tools.
Types of SIF Strategies
Explore different investment approaches available in SIFs
Frequently Asked Questions
Get answers to common questions about Specialised Investment Funds
Ready to Start Your SIF Journey?
Book a free consultation with our experts to find the right SIF strategy for you.
Book Free Consultation