What Is SIF (Specialised Investment Fund)?

What Are SIFs Going to Offer Investors?

SIFs provide investment strategies that go beyond those available in traditional mutual funds while maintaining regulatory oversight.

Some of their key offerings include:

• Higher Investment Flexibility: Fund managers can adopt investment strategies that are not generally available under standard mutual fund schemes.
• PAN-Level Investment Threshold: Investors must maintain a minimum investment of ₹10 lakh across SIF schemes of the same AMC at the PAN level, subject to applicable SEBI regulations.
• Long-Short Investment Strategies: Eligible SIF schemes can take both long and short market positions within the prescribed regulatory limits.
• Controlled Short Selling: Equity-oriented SIFs can maintain short exposure within the limits specified by SEBI, including the applicable cap on gross short exposure.
• Equity-Oriented Strategies: Certain SIF categories are required to maintain the prescribed minimum allocation to equity and equity-related instruments.
   

What Are the Features of SIF?

Specialised Investment Funds include several features that distinguish them from conventional mutual funds.

• Broader Investment Universe: SIFs can invest across multiple asset classes depending on the investment strategy and applicable regulatory framework.
• Advanced Portfolio Strategies: Fund managers may use long-short, active asset allocation, or other permitted strategies to manage portfolios.
• Defined Exposure Limits: SEBI prescribes exposure limits for different asset classes to support portfolio diversification and risk management.
• REIT and InvIT Investments for SIF: SIFs can make investments in REITs and InvITs subject to relevant regulatory limitations. Starting from January 2026, REIT investments by mutual funds and SIFs will be considered equity related investments under the relevant regulatory requirements.
• Professional Fund Management: Experienced investment professionals manage SIF portfolios based on the scheme's investment objective and strategy.
• Regulated Structure: SIFs operate under SEBI's regulatory framework, with disclosure, valuation, and compliance requirements similar to those applicable to mutual funds.
   

What Is the Risk Mitigation of SIF?

Although SIFs offer greater investment flexibility, they continue to operate within a structured regulatory framework designed to manage investment risks.

Some of the key risk mitigation measures include:

• Exposure Limits: SEBI specifies investment and exposure limits to reduce excessive concentration in individual securities or asset classes.
• Portfolio Diversification: Investment limits encourage diversification across securities and sectors, depending on the strategy.
• Regular Disclosures: AMCs are required to provide periodic disclosures relating to portfolio holdings and other prescribed information.
• Regulatory Oversight: SIFs remain subject to SEBI regulations covering compliance, valuation, governance, and investor protection.
• Professional Risk Management: Fund managers monitor portfolios and exposures in line with the investment mandate and applicable regulations.
   

Difference Between SIF and Mutual Funds

The following table highlights the key differences between SIF vs mutual fund:

Who Is SIF For?

A Specialised Investment Fund is designed for investors who seek greater flexibility than traditional mutual funds while remaining within a regulated investment structure.

SIFs may be suitable for investors who:

• Meet the Investment Threshold: Investors who satisfy the prescribed minimum investment requirement under the SIF framework.
• Have Investment Experience: Individuals who understand different investment strategies and market movements.
• Can Accept Higher Risk: Investors who are comfortable with strategies that may involve higher volatility than traditional mutual funds.
• Have Medium- to Long-Term Financial Goals: Investors looking to remain invested over a longer period while using diversified investment strategies.
• Want Alternatives to Conventional Mutual Funds: Investors seeking broader portfolio management approaches without opting for PMS or AIFs.
   

Benefits of Specialised Investment Fund by SEBI

SIFs combine regulatory oversight with greater investment flexibility, making them a distinct category within the investment landscape.

Some of the key benefits include:

• Greater Portfolio Flexibility: Fund managers can use a wider range of permitted investment strategies.
• Regulated Investment Framework: SIFs continue to operate under SEBI's regulatory and disclosure requirements.
• Diversified Investment Opportunities: Depending on the scheme, portfolios may invest across different asset classes and market segments.
• Professional Portfolio Management: Experienced fund managers actively manage investments according to the scheme objective.
• Alternative to PMS: SIFs provide an additional investment option for eligible investors seeking more flexibility than traditional mutual funds.
   

Eligibility Criteria for AMCs to Launch SIFs

SEBI has prescribed eligibility requirements for Asset Management Companies (AMCs) that wish to launch Specialised Investment Funds.

The eligibility criteria include:

• Established Track Record: The AMC should generally have a minimum operational track record of three years.
• Minimum Assets Under Management: The AMC should meet the prescribed average Assets Under Management (AUM) requirement under the applicable regulations.
• Experienced Investment Team: The Chief Investment Officer (CIO) and fund management team should possess the required experience specified by SEBI.
• Alternative Eligibility Route: SEBI also permits eligible AMCs with specialised investment expertise to launch SIFs through the alternate eligibility route, subject to the applicable regulatory conditions.
• Regulatory Compliance: The AMC must comply with all operational, governance, and risk management requirements prescribed by SEBI.
   

Taxation of SIFs

The tax treatment of a Specialised Investment Fund depends on the underlying asset allocation of the scheme. In general, SIFs follow the same taxation principles applicable to mutual funds with similar investment structures.

*Tax rules are subject to changes under the prevailing Income-tax laws.

Popular SIF Strategies Live in India (2026)

Since the introduction of the SIF framework, several Asset Management Companies have launched specialised investment strategies under this category.

*Investors should refer to the respective AMC for the latest scheme details and availability.

The 7 SIF Strategy Subcategories

SEBI has introduced different strategy categories under the SIF framework to provide investors with a broader range of investment approaches.

The key strategy subcategories include:

• Equity Long-Short Strategy
• Sector Rotation Long-Short Strategy
• Ex-Top 100 Long-Short Strategy
• Active Asset Allocator Strategy
• Debt Long-Short Strategy
• Hybrid Long-Short Strategy
• Multi-Asset Strategy

These categories allow fund managers to adopt different portfolio management approaches while operating within SEBI's prescribed investment and risk management framework.
 

Conclusion

Specialised Investment Funds (SIFs) expand the investment choices available to eligible investors by offering greater flexibility than traditional mutual funds within a SEBI-regulated framework. They support a wider range of investment strategies while maintaining regulatory oversight, disclosure standards, and risk management requirements. Before investing, it is important to understand the investment strategy, eligibility requirements, risk profile, and tax treatment of the scheme. Comparing SIFs with other investment options can help investors determine whether they align with their financial goals and risk tolerance.