AMFI-registered Mutual Fund Distributor · SIF Distributor · ARN 348738

Specialized Investment Funds (SIF)

SIFs are a SEBI-regulated investment category introduced by a circular dated 27 February 2025, effective 1 April 2025. They sit within the mutual fund framework but permit strategies that ordinary mutual funds cannot use, such as limited short exposure through derivatives, for investors who meet a higher minimum.

Who can invest

A minimum aggregate investment of ₹10 lakh across all strategies of a fund house, counted at PAN level. Investments in regular mutual fund schemes are not counted.
Accredited investors, as defined by SEBI, are exempt from the minimum.
Resident individuals, NRIs, HUFs, trusts and companies are generally eligible, subject to the scheme's documents. KYC is required.
SIP, STP and SWP routes are available, provided the ₹10 lakh threshold is maintained. A demat account is not mandatory.

How SIFs differ from regular mutual funds

	SIF	Mutual fund
Minimum	₹10 lakh (PAN level, per fund house)	From a few hundred rupees
Short exposure	Up to 25% of net assets, unhedged	Not permitted; derivatives for hedging only
Strategies	Long-short, sector rotation, active asset allocation	Mainly long-only
Redemption	Frequency may differ from daily	Daily for open-ended schemes

SEBI recognises seven strategy types across three groups: equity (equity long-short, equity ex-top-100 long-short, sector rotation long-short), debt (debt long-short, sectoral debt long-short) and hybrid (active asset allocator long-short, hybrid long-short).

Risks to understand

Short positions and derivatives can lose money when markets move against them, and losses can be larger than in long-only funds.
Strategies can be concentrated, and volatility can be higher than in regular mutual funds.
Redemption timing and frequency are set by each strategy and may be less frequent than daily.
Returns are not guaranteed. Read the Scheme Information Document and the Investment Strategy Information Document before investing.

Taxation. SIFs follow the same pass-through tax structure as mutual funds, and investors are taxed on redemption as per prevailing rules and the strategy's asset mix.

SIFs carry higher risks, including derivative and short exposure, and are available only to eligible investors. Read all scheme related documents carefully. See Disclaimers.

Questions people ask

Is a SIF only for large investors?

It is for investors who meet the ₹10 lakh threshold or qualify as accredited investors, and who understand derivative-based strategies.

Can I hold both mutual funds and a SIF?

Yes. Many eligible investors hold regular mutual funds as their core and a SIF strategy as a smaller, specialised part.

What happens if my investment falls below ₹10 lakh because of market movement?

The scheme documents explain how the minimum is treated. We will take you through it before you invest.