SEBI has set minimum investment thresholds to balance accessibility with investor suitability for Specialized Investment Funds.
To make Specialized Investment Funds accessible while ensuring investor suitability, SEBI has set a minimum investment requirement of ₹10 lakh per investor. This threshold balances inclusivity with responsibility, as SIFs involve sophisticated strategies not ideal for very small investors.
Compared to Portfolio Management Services (PMS), which require a minimum of ₹50 lakh, SIFs open the door to a much wider audience of affluent individuals and families. At the same time, the threshold is higher than mutual funds, which typically allow investments starting from ₹500 or ₹1,000.
This positioning makes SIFs a middle-ground product: not as mass-market as mutual funds, but far more accessible than PMS or Alternative Investment Funds (AIFs). Investors who want advanced strategies but do not meet the PMS entry barrier can now participate through SIFs.
By lowering the entry ticket, SEBI aims to democratize Specialized Investment Funds while safeguarding investors with disclosure and risk norms. Over time, this ₹10 lakh threshold may help SIFs build a broad investor base in India.