Experience the best of both worlds: Bridge the gap between accessibility of mutual funds and the sophistication of PMS/AIF with professional management and advanced strategies
A Specialised Investment Fund (SIF) is a new investment vehicle being introduced under SEBI’s regulatory framework. SIFs are designed to bridge the gap between mass-market Mutual Funds and high-ticket Portfolio Management Services (PMS)/Alternative Investment Funds (AIF). If you want access to advanced investment opportunities beyond mutual funds, without committing the high capital required for PMS/AIF, SIFs could be the smart middle ground.
₹10 lakhs initial investment capacity
Comfortable with market volatility and risk
Medium to long-term investment outlook (3+ years)
Understanding of financial markets and investment products
Advanced strategies such as long–short equity, sector rotation, and dynamic allocation can help SIFs outperform traditional mutual funds.
Read moreSIFs provide exposure to diverse asset classes and flexible strategies, helping reduce downside risk while maximizing long-term growth.
Go Back| Feature | SIF (Specialized Investment Fund) | Mutual Fund (MF) | Portfolio Management Services (PMS) | Alternative Investment Fund (AIF) |
|---|---|---|---|---|
| Minimum Investment | ₹10 Lakh | ₹100 | ₹50 Lakh | ₹1 Crore |
| Investor Type | HNI | Retail / HNI | HNI | HNI / Ultra HNI |
| STCG (< 12m) | Equity:
20% Debt: Slab rate |
Equity: 20% Debt: Slab rate |
Taxed at each transaction | Category dependent |
| LTCG (> 12m) | Equity:
12.5% Debt: Slab rate |
Equity: 12.5% Debt: Slab rate |
Taxed at each transaction | Category dependent |
| Leverage | Not allowed | Not allowed | Not allowed | Allowed (up to 2x) |
| Derivatives | Up to 25% naked shorts + hedging | Only hedging | Only hedging | Allowed |
| Strategy Flexibility | High (long-short, sector rotation) | Limited (mostly long-only diversified) | Customised portfolio | Wide range (private equity, credit, hedge, etc.) |
| Liquidity | Moderate (close-ended features) | High (daily redemption) | Low (lock-in, redemption restrictions) | Low (close-ended, 5–10 years) |
• Minimum 80% allocation in equities.
• Up to 25% short exposure using derivatives (taking
advantage of falling stock prices).
Essentially a fund that invests in stocks but can also
profit from market downturns.
• At least 65% investment in companies outside the Top 100
by market cap.
• Up to 25% short exposure through derivatives.
Designed to capture opportunities in mid and small-cap
stocks with the ability to hedge or short-sell.
• Minimum 80% invested across a maximum of 4 sectors.
• Up to 25% sector-level short exposure.
Gives concentrated exposure to chosen sectors while
still having flexibility to short weak ones.
• Invests in a mix of debt instruments.
• Can take short positions via exchange-traded debt
derivatives.
Useful in managing interest rate risks and capturing
debt market opportunities.
• Invests in debt instruments from at least 2 sectors.
• Maximum 75% allocation in any single sector.
• Up to 25% short exposure in debt instruments.
Adds diversification while managing sector-specific
risks.
• Flexible mix of equity, debt, derivatives, REITs/InvITs,
and commodity derivatives.
Dynamic allocation across multiple asset classes for
balanced growth and risk management.
• Minimum 25% in equity and 25% in debt.
• Up to 25% short exposure.
Blends equity and debt with hedging flexibility,
offering a balanced approach.
● Portfolio (with ISINs, including derivatives) is disclosed every
alternate month within 10 days of month-end.
● NAV is declared by 11:00 PM on the same business day (T day).
● Suitable for investors with higher risk appetite.
● Ideal for those seeking diversification beyond traditional assets
and MFs.
● Offers strategies with derivatives for better returns and risk
management.
● Can invest in equity, debt, or hybrid strategies.
● May use derivatives within equity/debt to enhance returns and
manage risk.
● Short-term: Minimum 2 years.
● Medium-term: 2–5 years.
● Long-term: Best to stay over 5 years for full benefit.
● Frequency can differ by strategy.
● Example: Daily subscriptions but weekly redemptions.
● Equity: Market volatility, liquidity, sector concentration.
● Debt: Interest rate, credit default, low liquidity.
● Hybrid: Moderate risk.
● Derivatives: Flexibility but higher price volatility & limited
liquidity.
● Short exposure capped at 25%.
● Same as Mutual Funds.
● Equity: LTCG 12.5%, STCG 20%.
● Debt: Taxed at investor’s slab rate.
● Hybrid (<65% in equity/debt): LTCG 12.5%, STCG as per slab.
● No tax at fund level (Section 10(23D)).
● Route 1: MF with 3+ years track record, AUM ≥ ₹10,000 Cr.
● Route 2: CIO with 10+ years managing ≥ ₹5,000 Cr and an
additional Fund Manager with 3+ years managing ≥ ₹500 Cr.