Specialised Investment Funds
Specialized Investment Funds (SIFs) are a new SEBI-regulated category introduced in India in 2025, designed as a middle ground between mutual funds and high-ticket PMS/AIF products. They allow investors access to advanced strategies like long–short equity, thematic funds, and tactical asset allocation, but with lower entry barriers than PMS.
Specialized Investment Funds (SIFs) are SEBI-approved schemes under the SEBI (Mutual Funds) Regulations, 1996, amended in 2024 and effective from April 1, 2025. They bridge the gap between mutual funds (low entry, pooled investments) and Portfolio Management Services (PMS) (high entry, customized portfolios).
Long–short equity, hybrid, sector/thematic, and tactical allocation.
Minimum investment is 10 lakh.
Units are held like mutual funds, but portfolios are more strategy-driven.
Managers can take hedging positions, short-sell, or focus on niche themes.
Fully governed by SEBI, ensuring investor protection.
Feature | Description |
|---|---|
Minimum Investment | ₹10 Lakh (compared to ₹500 for Mutual Funds and ₹50 Lakh for PMS). |
Derivative Usage | Allowed to take up to 25% unhedged short positions using derivatives. |
Asset Universe | Can invest in Equities, Debt, REITs, InvITs, and Commodities. |
Liquidity | Can be Open-ended, Close-ended, or Interval funds (e.g., redemption allowed only once a month). |
Diversification | Generally, no more than 10% can be invested in a single company’s equity. |
Aspect | SIF | Mutual Funds | PMS |
|---|---|---|---|
Minimum Investment | ₹10k–₹50k | ₹500–₹5,000 | ₹50 lakh |
Strategy | Long–short, thematic, tactical | Diversified, passive/active | Fully customized |
Regulation | SEBI (MF Regulations, 2025) | SEBI (MF Regulations) | SEBI (PMS Regulations) |
Transparency | NAV-based units | NAV-based units | Direct holdings in Demat |
Risk | Moderate–High | Low–Moderate | High (concentrated bets) |
We at AF Financial Distributors provide customized investments plans to all our clients in order to help them achieve their financial goals. You too can achieve your financial goals with us over a cup of coffee.
Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investments objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investments before finalizing on any investments decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.
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