Specialized Investment Fund (SIF) is a new asset class, with its regulatory framework effective from April 1, 2025, that aims to bridge the gap between MFs and PMS/AIFs, offering a blend of flexibility and unique investment strategies which can further enhance risk mitigation tools for the scheme. SIFs offer more flexibility to investment managers as compared to traditional money managers, while still providing a level of regulatory oversight and investor protection.
The range of investment products with varying risk-reward profiles are more intended towards high risk appetite investors, HNIs, family offices and institutions and accredited* investors.
- SIFs have a minimum investment requirement of ₹10 lakhs
- The taxation is the same as mutual funds
- Fund managers have additional tools via derivative instruments to have 25% uncoverd short exposure
- The product gives exposure to strategies like long-short which isn’t available in current mutual fund schemes
As per SEBI regulations governing SIFs, AMCs must ensure that the SIF has a unique brand name and maintains a separate website, distinct from its regular mutual fund business. Additionally, the SIF must have a separate identity to clearly differentiate its offerings from those of a mutual fund.