A Specialized Investment Fund (SIF) is a newly introduced investment option in India, designed for investors who want more flexibility than traditional mutual funds – but don’t qualify or wish to invest the ₹50 lakh minimum required in a Portfolio Management Service (PMS).
Think of a SIF as a mid-level investment vehicle:
A SIF is managed by a professional fund manager and allows investors to participate in custom strategies like private credit, thematic equity, or structured debt, with a minimum investment of ₹10 lakh. These funds are governed by SEBI (Securities and Exchange Board of India) under a new framework rolled out in 2024–25.
SEBI has clearly defined the types of investment strategies a SIF can follow, offering enhanced flexibility while keeping investor protection intact. All permitted strategies fall into three broad categories:
| — | SIF (Specialized Investment Fund) | Mutual Fund (MF) | Portfolio Management Services (PMS) | Alternative Investment Fund (AIF) |
|---|---|---|---|---|
| Target Investors | Affluent investors seeking advanced yet tax-efficient strategies | First-time to long-term investors | HNIs desiring personalized portfolio management | Ultra-HNIs & institutions exploring non-traditional assets |
| Minimum Investment | ₹10 lakh | ₹100 (SIP & Lumpsum) | ₹50 lakh | ₹1 crore |
| Structure | Hybrid between MF & PMS/AIF; retains MF-like taxation | Pooled, SEBI-regulated investment vehicle | Separately managed, direct stock ownership | Pooled, privately placed schemes |
| Strategies | Flexible: long–short, dynamic asset allocation, etc. | Equity, debt, hybrid, index-based | Customizable: thematic, concentrated, sectoral | Private equity, venture capital, hedge, real estate, special situations |
| Taxation | Similar to Mutual Funds (depends on asset class) | Tax-efficient with indexation & capital-gain benefits | Based on individual security treatment | Pass-through taxation depending on category |
| Liquidity | Moderate (depends on strategy) | High (open-ended) | Moderate (subject to exit load/notice period) | Low (typically closed-ended) |
Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme-related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in the future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structures (TER) applicable at the time of making the investment before finalising any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure of commission earnings is made to clients at the time of investments.
ARN 323237 | Date of Initial Registration: 01/03/2025 | Current Validity: 21/02/2028
EUIN E612596 | Date of Initial Registration: 01/03/2025 | Current Validity: 21/02/2028
