What is iSIF and Why It Matters
The Securities and Exchange Board of India (SEBI) introduced the Specialised Investment Fund (SIF) framework to bridge the gap between traditional mutual funds and more flexible, customised investment solutions such as Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). SIFs empower asset managers to deploy advanced investment strategies—including long–short positions and derivative exposure—while operating within a transparent, regulated mutual fund structure.
iSIF is ICICI Prudential AMC’s branded offering under this SIF regime, tailored for sophisticated investors seeking strategy-driven portfolio solutions. Participation in iSIF strategies requires a minimum investment of ₹10 lakh per PAN, reflecting the advanced and specialised nature of these funds.
New Funds Under iSIF - Hybrid and Equity Ex-Top 100 Long–Short
ICICI Prudential Mutual Fund has launched two distinct long–short SIF strategies, both open for subscription through their New Fund Offers (NFOs) from 16 January to 30 January 2026:
1. iSIF Hybrid Long-Short Fund
This fund uses a balanced approach, investing across equity, debt, and derivatives, aiming to generate risk-adjusted returns while managing market volatility. The hybrid strategy seeks to blend growth and stability by tactically allocating between asset classes, offering diversification that adjusts dynamically with market conditions.
2. iSIF Equity Ex-Top 100 Long-Short Fund
Focused on opportunities outside the top 100 companies by market capitalization, this equity long–short fund emphasizes mid- and small-cap potential while using derivative strategies to manage downside risk. By combining bottom-up stock selection with tactical short exposures, the fund strives to navigate uneven market conditions more effectively than traditional long-only strategies.
The hybrid and equity ex-top 100 funds represent different styles of long–short deployment one diversified across asset classes, the other more concentrated in selective equity opportunities but both seek superior risk-adjusted outcomes relative to traditional products.
Key Features Investors Should Know
✔ Regulated Framework
iSIF operates under SEBI’s SIF regulations, ensuring transparency, governance, and oversight while allowing portfolio flexibility not typical in standard mutual funds.
✔ Minimum Investment Threshold
A minimum of ₹10 lakh per investor per PAN is required to participate in iSIF strategies, reflecting the sophisticated nature of these funds.
✔ Long–Short Strategy Adoption
Both funds utilize long-short strategies, which allow portfolio managers to take positive (long) and negative (short) positions, helping balance potential returns with risk management across market cycles.
✔ Flexible Risk Management
The strategic use of derivatives, combined with dynamic allocation and tactical security selection, is designed to improve volatility management and capital preservation in varied market environments.
What This Means for Investors
In an era of heightened market fluctuations, static long-only products can struggle to balance growth and risk efficiently. The launch of iSIF funds - with long–short equity, hybrid, and dynamic allocation mandates - offers investors access to strategies previously limited to high-ticket alternatives or institutional portfolios.
The availability of these strategies under a regulated mutual fund framework gives investors a new toolkit to pursue returns without sacrificing transparency or compliance.
Broader Industry Context
ICICI Prudential is one of several AMCs embracing the SIF framework, as the industry collectively moves to deepen this new category. Several firms have filed drafts or launched SIFs in recent months in response to SEBI’s April 2025 rollout of the SIF regime - including other large houses expanding into hybrid and long–short strategies.
This trend reflects a growing recognition that India’s investment landscape is ready for next-generation products that can cater to sophisticated investment needs while remaining accessible and regulated.
NFO Details: January 16–30, 2026
- Opening Date: January 16, 2026
- Closing Date: January 30, 2026
- Minimum Investment: ₹10 lakh per PAN
- Structure: SEBI-regulated SIF