A SIF is an investment strategy under a Mutual Fund trust that can be established by a registered Mutual Fund meeting either Route 1 criteria (minimum 3 years of operation with an average AUM of at least INR 10,000 crores) or Route 2 criteria (a CIO with 10+ years’ experience managing INR 5,000 crores AUM and a Fund Manager with 3+ years’ experience managing INR 500 crores AUM).
A SIF investment strategy can be structured under one of three categories—Equity, Debt, or Hybrid—across seven eligible subcategories as defined by SEBI. The different subcategories under each category are as follows: Equity investment strategies include Equity Long-Short Fund, Equity Ex-Top 100 Long-Short Fund, Sector Rotation Long-Short Fund. Debt investment strategies include Debt Long-Short Fund & Sectoral Long-Short Fund. Hybrid investment strategies include Active Asset Allocator Long-Short Fund & Hybrid Long-Short Fund
An investor can invest in the investment strategy managed by the SIF with a minimum aggregated investment of ₹10,00,000 across all strategies offered under that SIF. Investments can also be made through Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), or Systematic Withdrawal Plan (SWP) routes, provided the minimum threshold of ₹10,00,000 is maintained.
The appropriate investment horizon depends on the investment objective of the selected strategy and the investor’s risk appetite. For short-term investors, a minimum horizon of 2 years is advisable. For medium-term goals, a horizon of 2 to 5 years is recommended. Long-term investors should ideally remain invested for over 5 years to fully benefit from the strategy.
Investors with a higher risk appetite seeking diversification beyond traditional assets and MFs may consider SIFs, which offer differentiated strategies, including exposure to derivatives for enhanced return potential and risk management
Taxation in SIFs is aligned with MF taxation. Equity strategies are subject to 12.5% long-term capital gains (LTCG) tax, while short-term gains (STCG) are taxed at 20%. Debt-oriented strategies are taxed as per the investor’s applicable slab rate. For hybrid strategies with less than 65% allocation to debt/equity and an investment horizon of over two years, the applicable LTCG tax is 12.5% while STCG will be taxed as per slab rates. The taxation at fund level will be nil as per Section 10 (23D)
Risk levels vary depending on the investment strategy. Equity investments carry risks such as market volatility, liquidity issues, and concentration in specific stocks or sectors. Debt investments face risks like interest rate movements, credit defaults, low liquidity, and reinvestment at lower yields. Debt strategies are generally the least risky, followed by hybrid strategies, while equity strategies carry higher risk. Derivatives offer strategic flexibility but also introduce risks like price volatility and limited liquidity, which can be managed through disciplined risk controls. The maximum short exposure through derivatives is capped at 25%, which may elevate risk if not managed with adequate prudence.
The subscription frequency and redemption frequency of an investment strategy may be distinct from each other (Eg: An investment strategy may permit daily subscriptions, while offering weekly redemptions)
SIFs have distinct investment universes based on whether the strategy is equity, debt, or hybrid, with the flexibility to use derivatives within both equity and debt instruments to enhance returns and manage risk.
The SIF shall disclose portfolio (along with ISIN), including derivative instruments, as on the last day of every alternate month within 10 days from the close of such month. NAVs are disclosed by 11:00 PM on the same business day (T day).
A SIF is a SEBI-regulated investment vehicle that blends features of mutual funds and PMS, offering sophisticated strategies with more accessibility and transparency.
SIF stands for Specialized Investment Fund — a new investment category introduced by SEBI to bridge the gap between retail and private wealth investing.
SIFs pool investor money and allocate it across specialized strategies, using a mix of debt, equity, and derivatives. They offer pre-defined risk-return profiles and are managed by professionals.
SIFs typically require lower minimum investments (₹10L vs ₹50L), are pooled in structure, offer better transparency, and have NAV-level reporting — unlike PMS, which manages individual portfolios.
SIP is just a way of investing. SIFs are more sophisticated and specialized than mutual funds, often combining debt, equity, and derivatives for targeted risk-return profiles.
Types include equity-linked SIFs, debt-focused SIFs, hybrid SIFs, and thematic or sector-based SIFs — each offering different strategies and risk levels.
Returns are not guaranteed and vary depending on the specific fund, its strategy, and prevailing market conditions. Different categories of funds may carry varying levels of risk and potential reward, and past performance is not indicative of future results.
Any Indian resident with a minimum investment amount (usually ₹10L) and completed KYC can invest. Some SIFs may be available only to accredited investors.
SIFs began launching in 2025, with platforms like Altiva by Edelweiss Mutual Fund, Magnum by SBI Mutual Fund, and QSIF by Quant Mutual Fund already active. Several more — including Arudha, Diviniti, Endurance, Platinum, and Titanium — are expected soon, marking a rapid expansion of SIF availability across major AMCs in India.
SIF360 is India’s first dedicated SIF platform, offering fund discovery, comparison tools, one-click investment, and live performance tracking for SIFs.
Not always. Some SIFs use demat units, while others are account-based. SIF360 guides you through the correct process for each fund.
SIF360 provides tools to compare SIFs by performance, strategy, manager, and risk. Use it to make informed decisions.
SIFs offer specialized strategies, SEBI regulation, low minimums, and NAV-based transparency — making them ideal for modern investors.
Currently launched SIFs in India include Altiva by Edelweiss Mutual Fund, Magnum by SBI Mutual Fund, and QSIF by Quant Mutual Fund. You can explore detailed information and updates on these funds through SIF360.
That depends on your risk profile and goals. SIF360 offers a personalized matcher to recommend funds suited to your needs.
Resident Indians, NRIs, HUFs, AOPs, Trusts, Private Limited Companies.
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SIFs typically offer Direct and Regular options, catering to different investor needs.
No, a demat account is not mandatory for investing in or managing a SIF.