Fundsavvy: Your Specialized Investment Fund (SIF) Partner
Invest Beyond the Ordinary — Discover the Power of SIF
A New Era of Smart, Flexible, and Regulated Investing in India
The investment landscape in India has evolved over the years, with SEBI introducing and refining various products to suit the diverse needs of Retail, HNIs, and Institutional Investors. To ensure effective oversight, SEBI follows a segmented, risk-based regulatory approach, categorizing investment products based on their complexity, target investor sophistication, and minimum investment size.
Investors today have access to a wide range of investment avenues — from Mutual Funds (MFs) that cater to mass Retail Investors, to Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) that serve more sophisticated portfolios. However, over time, a significant gap emerged between Mutual Funds and PMS, particularly in terms of portfolio flexibility and entry-level investment requirements.
To bridge this gap, SEBI introduced a new and flexible investment vehicle — the Specialized Investment Fund (SIF). This new asset class offers investors the opportunity to participate in advanced, personalized investment strategies that were previously accessible only through PMS or AIFs.
With PMS requiring minimum investment of ₹50 lakh, many investors were unable to participate in such customized strategies. SIF now opens that door — allowing investors to enter this space at a much lower investment threshold, while still enjoying SEBI’s regulatory oversight and professional fund management.
Launched officially through a SEBI circular in February 2025, the Specialized Investment Fund (SIF) framework came into effect from April 1, 2025. This marks a major step in India’s investment evolution — bridging the gap between traditional Mutual Funds and high-ticket PMS, and creating new possibilities for investors seeking smarter, strategy-driven growth.
What is Specialized Investment Fund (SIF)?
Specialized Investment Fund (SIF) is a new asset class introduced by SEBI in 2025, designed for investors looking for advanced investment strategies. It offers flexibility, advanced features, and lower entry requirements than AIFs or PMS. SIFs are regulated under the SEBI (Mutual Funds) Regulations, 1996, and come with a set of eligibility criteria, branding requirements, and investment guidelines.
SIF serves as a bridge between PMS and AIFs, providing an alternative investment option for investors. While traditional mutual funds allow investments starting at ₹100 through SIPs, Portfolio Management Services (PMS) require a minimum investment of ₹50 lakh, and Alternative Investment Funds (AIFs) mandate a substantial ₹1 crore to begin. SIF bridges this gap by enabling investors to start with a more accessible amount of ₹10 lakh acting as the minimum investment amount.
Who can invest in SIF?
Eligibility Criteria:
Minimum Investment - ₹10 lakh is the minimum commitment required per investor at the PAN level across all SIF schemes by a single AMC. This is mandatory unless the investor qualifies as an accredited investor.
Accredited investors are exempt from the ₹10 lakh minimum. Criteria for accreditation include:
Individuals with net worth ≥ ₹7.5 crore (₹3.75 crore in financial assets) or annual income ≥ ₹2 crore
Partnership firms/corporates/trusts with net worth ≥ ₹50 crore
Accredited status is verified by SEBI-approved agencies.
Suitability: Who Should Invest in SIF?
High Net-Worth Individual (HNIs) -SIFs are specifically tailored for HNIs wanting access to strategies like long-short equity, debt positioning, or hybrid schemes, with customized risk-return profiles
Institutions & Family Offices - These entities can utilize SIFs for portfolio diversification and to deploy capital across innovative strategies that are otherwise available only via PMS or AIF platforms
Seasoned Investment Professionals - Investors with substantial market experience, who understand liquidity risks, volatility, and complex investment strategies, can benefit from the advanced options and greater flexibility in SIF schemes
Accredited Investors - Individuals and entities meeting SEBI’s definition of accredited investors can participate in SIFs without minimum investment hurdles, giving them greater flexibility to diversify and access alternative asset classes.
Get in Touch
Connect with us for mutual fund investments tailored to your financial goals and risk appetite. We're here to help you make an informed mutual fund investment.
+91 96437 49386
support@fundsavvy.in
© 2024. All rights reserved.