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Specialised Investment Fund (SIF)

SEBI's newest investment category — bridging the gap between mutual funds and PMS. Concentrated portfolios, derivatives strategies & long-short for investors with ₹10 Lakh+.

What is SIF (Specialised Investment Fund)?

The Specialised Investment Fund (SIF) is a new investment category introduced by SEBI in 2024-25 that sits between regular mutual funds and Portfolio Management Services (PMS). It allows AMCs to offer concentrated, high-conviction portfolios and advanced strategies (derivatives, long-short) to investors with a minimum of ₹10 Lakhs.

SIF was created to make PMS-like strategies accessible to a wider investor base. Think of it as "PMS democratised through the mutual fund structure."

SIF is SEBI's answer to the gap between ₹500 SIP mutual funds and ₹50 Lakh PMS — giving HNIs access to concentrated, strategy-driven portfolios at just ₹10 Lakh minimum.

SIF vs Mutual Funds vs PMS — Comparison

ParameterSIFMutual FundsPMS
Minimum Investment₹10 Lakhs₹500₹50 Lakhs
No. of Stocks10-20 (concentrated)40-80 (diversified)15-25
Derivatives AllowedYesLimitedNo
Long-Short StrategyYesNoNo
StructurePooled (like MF)PooledIndividual demat
RegulationSEBI MF regulationsSEBI MFSEBI PMS
LiquidityT+3 to T+7T+1 to T+2T+2
Target Returns15-22% CAGR12-18% CAGR15-25% CAGR
Best ForHNIs (₹10L-₹50L)EveryoneHNIs (₹50L+)

Key Features of SIF

  • Concentrated Alpha — 10-20 stocks for maximum impact per pick
  • Derivatives Strategies — Options for income generation or hedging
  • Long-Short — Can short overvalued stocks + go long on undervalued
  • Lower Entry vs PMS — ₹10L minimum (vs ₹50L for PMS)
  • SEBI Mutual Fund Framework — Full regulatory oversight and transparency
  • NAV-Based — Daily NAV like mutual funds for easy tracking
  • Professional Management — Same star fund managers with enhanced flexibility

Types of SIF Strategies

  • Concentrated Equity — 10-20 high-conviction stocks for maximum alpha
  • Long-Short Equity — Buy undervalued + short overvalued for market-neutral returns
  • Derivatives-Enhanced — Options strategies for income generation or hedging
  • Sector Rotation — Active sector switching based on macro cycles
  • Momentum/Factor — Quantitative strategy exploiting price momentum
  • Multi-Asset Active — Dynamic allocation across equity, debt, gold, international

Who Should Invest in SIF?

  • Investors with ₹10 Lakhs - ₹50 Lakhs seeking higher returns than regular mutual funds
  • Experienced MF investors wanting concentrated, high-conviction portfolios
  • HNIs who find PMS minimum (₹50L) too high but want PMS-like strategies
  • Investors comfortable with higher volatility for potentially higher returns
  • Those seeking derivatives-based income strategies or hedged portfolios

Benefits of SIF

🎯

Concentrated Alpha

10-20 stocks means each pick has real impact. No dilution from holding 50+ stocks like regular MF.

📉

Bear Market Returns

Long-short and derivatives can generate returns even when markets fall — impossible in regular MF.

💰

Lower Entry (₹10L)

PMS-quality concentrated portfolios and hedge fund strategies at 1/5th the PMS minimum.

🛡️

SEBI Regulated

Full mutual fund regulatory framework — NAV transparency, audited accounts, investor protection.

📊

Professional Management

Same star fund managers who run large-cap schemes — now with more flexibility.

🔄

Better Liquidity than PMS

Redemption in T+3 to T+7 days (like MF) vs PMS which can take longer.

FAQ — Specialised Investment Fund

The minimum is ₹10 Lakhs as per SEBI framework. This is 5x lower than PMS (₹50L) making it accessible to a wider HNI base.

SEBI introduced the SIF framework in 2024-25. AMCs are launching schemes progressively. Expected widespread availability by mid-2026.

SIF operates under SEBI mutual fund regulations but offers strategies regular MFs cannot — concentrated portfolios, derivatives usage, and long-short.

SIF: Pooled structure, min ₹10L, derivatives allowed. PMS: Individual demat, min ₹50L, equities only. SIF offers more strategy flexibility at lower minimum.

Interested in SIF? Get Early Access

Be among the first to invest in SEBI's newest category. Free consultation to understand if SIF is right for your portfolio.

Book Free Consultation Call: +91 96640 19564