SIF: Specialized Investment Funds (SIFs) are a new investment option. Who are SIFs for? Learn how they work..

Specialized Investment Fund: Investors in India have a new investment option. The country's market regulator, the Securities and Exchange Board of India (SEBI), has approved a new asset class called Specialized Investment Funds (SIFs) from April 2025, which claims to bridge the gap between traditional mutual funds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs). While ordinary investors are happy with SIPs starting from Rs. 500-1000, SIFs are being touted as the new star of the investment world. However, the biggest catch is the minimum investment of Rs. 10 lakh.

Before understanding SIFs, it's important to understand AIFs and PMS. AIFs are investment funds that invest money in ways different from traditional mutual funds. They invest in stocks, bonds, property, private companies, hedge funds, and other unconventional investments. These are typically for high-net-worth or experienced investors. A minimum investment of Rs. 1 crore is required.

PMS requires a minimum investment of Rs. 50 lakh.
In PMS, your investment amount is managed individually by a professional portfolio manager. This means your money is invested in different stocks, bonds, or other assets to generate returns according to your goals and risk profile. This is for investors who don't want to manage their own portfolio and want to invest more than Rs. 50 lakh.

Who are SIFs for?
Specialized Investment Funds are for investors who can invest at least Rs. 10 lakh. These funds adopt long-term investment strategies, such as Equity Long-Short, Equity Ex-Top 100 Long-Short, Debt Long-Short Fund, Sectoral Debt Long-Short Fund, Active Asset Allocator Long-Short Fund, Hybrid Long-Short Fund, etc. Like mutual funds, specialized investment funds (SIFs) also offer Systematic Investment Plans (SIPs), Systematic Withdrawal Plans (SWPs), and Systematic Transfer Plans (STPs). However, after the ₹10 lakh limit, you can start an SIP, STP, or SWP with a minimum amount of ₹10,000.

4 AMCs have already launched SIF products:
Magnum SIF by SBI Mutual Fund
Altiva SIF by Edelweiss Mutual Fund
qSIF by Quant Mutual Fund
Diviniti SIF by ITI Mutual Fund

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