SIF (Specialised Investment Fund)
A Specialised Investment Fund (SIF), also written Specialized Investment Fund, is a SEBI-regulated investment product offered by eligible mutual fund houses. It sits between mutual funds and portfolio management services: it is a pooled fund like a mutual fund, but it needs a minimum investment of ₹10 lakh and can use strategies mutual funds cannot, such as taking limited short positions.
SEBI introduced the SIF framework in February 2025, effective from 1 April 2025. The first SIF strategies launched in October 2025. Rules on this page are as of October 2026.
Key SIF rules at a glance
| Feature | SIF rule |
|---|---|
| Regulator | SEBI, under the mutual fund regulatory framework |
| Minimum investment | ₹10 lakh per investor (PAN), counted across all SIF strategies of the same fund house. Accredited investors are exempt |
| Short exposure | Up to 25% of net assets through unhedged short positions in exchange-traded derivatives |
| Structure | Open-ended, close-ended or interval, depending on the strategy |
| SIP, SWP, STP | Allowed, as long as the total investment stays at or above the ₹10 lakh minimum |
| Branding | Run under a brand separate from the fund house's mutual fund schemes |
| Portfolio disclosure | Less frequent than mutual funds |
| Who can offer it | Only fund houses that meet SEBI's track record and AUM criteria, or alternative fund manager experience criteria |
SEBI updates these frameworks from time to time. Always check the scheme information document before investing.
Types of SIF strategies
Each SIF scheme follows one of seven strategies permitted by SEBI:
At least 80% in equity, with up to 25% short exposure through derivatives.
At least 65% in stocks outside the top 100 by market capitalisation, with limited short exposure.
Concentrated exposure to a small number of sectors, rotated over time, with limited short positions at the sector level.
Debt instruments across durations, with short positions through exchange-traded debt derivatives.
Debt investments spread across at least two sectors, with limited short exposure.
Moves dynamically across equity, debt, REITs, InvITs and commodity derivatives, with limited short exposure.
At least 25% each in equity and debt, with limited short exposure.
SIF vs mutual fund vs PMS vs AIF
| Mutual fund | SIF | PMS | AIF | |
|---|---|---|---|---|
| Minimum investment | As low as ₹100 to ₹500 | ₹10 lakh | ₹50 lakh | ₹1 crore |
| Structure | Pooled | Pooled | Individual portfolio in your demat account | Pooled |
| Short selling | Not allowed (except hedging) | Up to 25% unhedged | Limited | Allowed in Category III |
| Taxation | At redemption, mutual fund rules | At redemption, mutual fund rules | On every trade in your portfolio | Depends on category |
| Liquidity | Usually daily | Daily to periodic, by strategy | Varies by provider | Often locked in for years |
How SIFs are taxed
SIFs follow mutual fund tax rules, so tax is paid only when you redeem, not on trades inside the fund. Equity-oriented SIFs (at least 65% in Indian equity) are taxed like equity funds: short-term gains at 20%, and long-term gains above ₹1.25 lakh a year at 12.5% after a 12-month holding period. Debt-oriented SIFs are taxed at your income tax slab rate.
This fund-level tax treatment is one of the main advantages of an SIF over a PMS, where each trade can create a taxable event for the investor.
Between MF and PMS
Pooled like a mutual fund, with more strategy freedom and a higher minimum.
Long-short
Can bet against stocks or sectors through derivatives, within a 25% limit.
₹10 lakh entry
Designed for experienced investors with larger portfolios.
Who should consider an SIF
- Investors with large portfolios who already hold core mutual funds and want a small satellite allocation to differentiated strategies.
- Those who understand that long-short strategies can underperform plain equity funds in strong bull markets.
- Investors comfortable with newer products that have short track records, and with redemption limits on some strategies.
- Not suitable as a first investment, or for money needed in the short term. Speak to a financial planner about how an SIF fits your overall allocation.
Frequently asked questions
What is the minimum investment in an SIF?
The minimum is ₹10 lakh per investor, counted at PAN level across all SIF strategies offered by the same fund house. Accredited investors are exempt from this minimum.
Is an SIF a mutual fund?
An SIF is regulated under SEBI's mutual fund framework and offered by mutual fund houses, but it is a separate product category with its own branding, a ₹10 lakh minimum and permission to take limited short positions.
How is an SIF different from a PMS?
An SIF is a pooled fund with a ₹10 lakh minimum and mutual fund style taxation at redemption. A PMS holds securities directly in your demat account, needs ₹50 lakh, and each trade can create a taxable event for you.
Can I start a SIP in an SIF?
Yes. SIPs, SWPs and STPs are allowed, as long as your total SIF investment with that fund house stays at or above ₹10 lakh.
When were SIFs launched in India?
SEBI introduced the framework in February 2025, effective from 1 April 2025. The first SIF strategies began launching in October 2025.