Specialized Investment Fund (SIF)
A Specialized Investment Fund (SIF) is a new SEBI-regulated investment vehicle in India, introduced effective April 1, 2025, that combines the best of mutual funds and Portfolio Management Services (PMS).
Key Features:
- Built for experienced investors: Targets high-net-worth, accredited, and sophisticated investors seeking more than mutual funds but at a lower entry point than PMS .
- ₹10 lakh minimum investment: Much lower than the ₹50 lakh usually required for PMS.
- Broader asset universe: Includes equities, debt, REITs, private equity, derivatives-and even long-short and leveraged strategies.
- Regulated under mutual fund rules: Ensures investor protection, transparency, and compliance with SEBI's standards.
- Structured disclosure via ISID: Must publish an Investment Strategy Information Document outlining objectives, risks, benchmarks, and fees.
Who Should Consider SIF?
Ideal for:
- Wealthy investors with ₹10 - 50 lakh to allocate and familiarity with markets .
- Accredited individuals meeting income or net worth thresholds (e.g., ₹2 crore income or ₹7.5 crore net worth).
- Those seeking tactical, flexible strategies like long-short equity or sector rotation.
Less suitable for:
- Small retail investors with limited capital (< ₹10 lakh).
- Investors need daily liquidity.
- Novices unfamiliar with advanced strategies or higher volatility.
How SIF Compares to Other Investment Forms
| Investment Vehicle |
Minimum Entry |
Strategy Flexibility |
Regulation |
Target Audience |
| Mutual Funds |
Very low |
Basic (long-only) |
High |
General retail |
| PMS |
₹50 lakh |
High customization |
Moderate |
HNIs |
| AIFs |
₹1 crore+ |
Complex & niche |
Lower |
Institutional / HNI |
| SIFs |
₹10 lakh |
Advanced (long-short, derivatives) |
Mutual fund framework |
Affluent, educated investors |
- SIFs bridge mutual funds and PMS/AIFs with greater strategy depth than MFs , but greater regulation than AIFs.
Recent Developments: New SIF Offerings
- DSP Mutual Fund launched Endurance SIF , targeting experienced investors seeking personalized yet regulated strategies.
- ITI AMC introduced Diviniti Specialized Investment Fund (Diviniti SIF) , offering equity, hybrid, and fixed-income solutions under the SIF framework.
- Multiple AMCs-including ICICI Prudential, SBI, Quant, ITI -are planning long-short equity SIFs, allowing exposure to both long and short positions through derivatives.
Suggested Links for Your Clients to Explore Further
- [Business Standard - "India's first SIFs: What's special,,,who should invest"] Business Standard
- [INDmoney - "What Is a Specialized Investment Fund (SIF)?" (Updated Aug 4, 2025)] INDmoney
- [Moneycontrol - "MC Explains: All you need to know about SIF"] Moneycontrol
- [Economic Times analysis - "Explained: How is SIF different,,,"] Economic Times
- [Reuters - India's market regulator allows long-short equity, debt funds,,,"] Reuters
- [Economic Times - Launch of Endurance SIF by DSP Mutual Fund] Economic Times
- [Economic Times - Launch of Diviniti SIF by ITI Mutual Fund] Economic Times
