A Specialised Investment Fund (SIF) is a SEBI-regulated investment category that sits between mutual funds and Portfolio Management Services (PMS), designed for investors seeking more strategic flexibility without the higher entry point of a PMS Portfolio Management Service. Introduced under SEBI's regulatory framework effective April 1, 2025, SIFs sit deliberately between Mutual Funds and PMS — offering access to advanced strategies while remaining inside a mutual-fund-style regulatory wrapper.

What is a Specialised Investment Fund (SIF)?

SIFs are launched only by SEBI-registered Asset Management Companies that meet strict track-record and capital eligibility criteria — not something any fund manager can simply set up. Each SIF follows exactly one clearly defined strategy, stated in its offer document, giving investors transparency that's uncommon in more complex alternative products. The framework requires a minimum investment of ₹10 lakh, aggregated across all SIF strategies at an investor's PAN level within a single AMC, as detailed in SEBI's official circular on the subject.

Key Features of SIF

• Minimum investment of ₹10 lakh, aggregated across all strategies of one AMC at your PAN level
• Regulated under SEBI's Mutual Fund framework, offering the same investor-protection standards as regular mutual funds
• Only well-capitalised, track-record-proven AMCs are eligible to launch SIF strategies
• Distinct branding rules — SIFs must be clearly distinguished from a fund house's regular mutual fund schemes
• Accredited investors (₹2 crore+ annual income or ₹5 crore+ net worth) are exempt from the ₹10 lakh minimum

SEBI-Permitted SIF Investment Strategies

SEBI has defined exactly seven permitted strategies across three broad categories, giving AMCs room to innovate while keeping every strategy within clear, disclosed boundaries.

Equity-Oriented Strategies

• Equity Long-Short Fund — invests a minimum 80% in equities across market caps, with up to 25% unhedged short exposure through derivatives
• Equity Ex-Top 100 Long-Short Fund — focuses on mid and small-cap stocks outside the top 100 by market capitalisation
• Sector Rotation Long-Short Fund — tactically rotates capital across a maximum of four sectors based on market outlook

Debt-Oriented Strategies

• Debt Long-Short Fund — takes long and short debt positions via derivatives to manage interest rate risk
• Sectoral Debt Long-Short Fund — concentrates debt exposure within specific sectors

Hybrid Strategies

• Active Asset Allocator Long-Short Fund — dynamically shifts allocation across equity, debt, REITs/InvITs, and commodities based on market cycles
• Hybrid Long-Short Fund — maintains a minimum 25% in equity and 25% in debt at all times, offering a more balanced risk profile

Who Should Invest in a SIF?

• Investors with at least ₹10 lakh to commit, or those who qualify as accredited investors
• Those seeking more strategic flexibility than a regular mutual fund offers
• Investors not yet ready for the ₹50 lakh+ commitment required by PMS
• Investors comfortable with a 3-year-plus horizon and moderately complex, actively managed strategies

SIF Taxation

SIF taxation broadly follows mutual fund rules, varying by the underlying equity/debt mix of the specific strategy you choose. For a full breakdown of long-term and short-term capital gains treatment across each SIF category, see our detailed SIF Taxation Guide for Surat & Gujarat Investors.

SIF vs Mutual Fund vs PMS vs AIF — Which One Fits You?

Feature	Mutual Fund	SIF	PMS	AIF
Minimum Investment	₹500/month (SIP)	₹10 lakh	₹50 lakh	₹1 crore
Regulator	SEBI (MF Regulations)	SEBI (MF Regulations, amended)	SEBI (PMS Regulations)	SEBI (AIF Regulations)
Structure	Pooled, retail-facing	Pooled, single-strategy	Individual, personalised	Privately pooled
Strategy Flexibility	Limited to defined categories	Long-short, sector rotation, dynamic allocation	Fully customised	Varies by category
Best suited for	All investors, especially SIP investors	HNIs wanting more flexibility than MF, less complexity than PMS	HNIs wanting a fully personalised portfolio	Sophisticated investors seeking alternative assets

Benefits of Investing in SIF Through SR Wealth

• Guidance from an AMFI Registered Mutual Fund & SIF Distributor in selecting the strategy that fits your goals and risk profile
• Access to SEBI-regulated advanced strategies without the ₹50 lakh PMS threshold
• Ongoing portfolio tracking and periodic review as part of your relationship with SR Wealth

How to Invest in a SIF With SR Wealth

1. Initial consultation to assess whether a SIF fits your financial goals and risk profile
2. KYC and documentation
3. Selection of the appropriate AMC and investment strategy (equity, debt, or hybrid)
4. Minimum commitment of ₹10 lakh, aggregated across strategies at your PAN level
5. Ongoing monitoring and periodic portfolio review

Frequently Asked Questions

What is the minimum investment for a SIF in India?

₹10 lakh, aggregated across all SIF strategies under one AMC at your PAN level — waived for accredited investors.

How is a SIF different from a mutual fund?

SIFs permit strategies like long-short positioning and dynamic asset allocation that regular mutual funds cannot use, while still following SEBI's mutual fund regulatory framework.

How many SIF strategies has SEBI approved?

Seven specific strategies across three categories — equity-oriented, debt-oriented, and hybrid.

Is a SIF safer than a PMS?

Both are SEBI-regulated, but SIF sits between mutual funds and PMS in minimum investment and strategy complexity, with a lower entry point than PMS.

Who can launch a SIF?

Only SEBI-registered AMCs meeting specific track-record and capital requirements — not individual fund managers.  

About the Author

Paresh Chaudhary Founder, Shree Radha Financial Services, Surat AMFI Registered Mutual Fund & SIF Distributor — ARN: 268390 APMI Registered PMS Distributor — APRN: 05763 IRDAI Licensed Insurance Distributor Investing since 2012 | BE Mechanical, SVNIT Surat | Ex-L&T (15+ Years) Disclaimer: Mutual Fund and Specialised Investment Fund (SIF) investments are subject to market risks. SIF strategies may involve additional risks, including the use of derivatives for long-short positioning, and are suitable only for investors who meet SEBI's minimum investment or accredited investor criteria. Please read the Investment Strategy Information Document (ISID) and all scheme-related documents carefully before investing. Paresh Chaudhary / Shree Radha Financial Services is an AMFI Registered Mutual Fund & SIF Distributor (ARN: 268390) and does not provide investment advisory services.