A Specialised Investment Fund (SIF)
Key Features of SIFs
- Bridging the Gap: Combines the pooled, regulated structure of mutual funds with the strategic flexibility of PMS.
- Advanced Strategies: Enables sophisticated approaches like long-short strategies, dynamic asset allocation, and derivative use, not typically available in standard MFs.
- Tax Efficiency: Enjoys the same equity taxation benefits as mutual funds, enhancing potential post-tax returns.
- Accessible Entry Point: Requires a minimum investment of ₹10 lakh, significantly lower than PMS (₹50 lakh).
- Flexibility & Diversification: Fund managers can invest across equity, debt, alternatives, and derivatives, offering greater tactical control and diversification.
A Specialised Investment Fund (SIF) is a SEBI-regulated investment vehicle introduced in April 2025, created to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). It offers investors broader exposure, tactical investment flexibility, and professional fund management—within a regulated pooled structure. SIFs are designed for affluent investors, with a minimum investment of ₹10 lakh, making them more accessible than PMS (which requires ₹50 lakh). They provide a middle ground between the simplicity of mutual funds and the customization of PMS.
SIFs can pursue advanced investment strategies, such as long-short equity positions and derivative-based asset allocation, while retaining the tax benefits and transparency of equity-oriented mutual funds. Investors benefit from diversification across equities, bonds, REITs, and derivatives, with fund managers empowered to make dynamic tactical decisions.