Specialized Investment Fund (SIF) Explained: Future of Investing in India

September 8th, 2025 General Blog
Specialized Investment Fund (SIF) Explained: Future of Investing in India

 

As investors’ financial capabilities are growing, the Indian mutual fund industry is also coming up with new types of mutual funds. Each of these funds has different objectives and features, along with certain investment limits. For example, in equity mutual funds, you can start investing with as little as ₹500, whereas in hedge funds, you need a minimum investment amount of ₹1 crore.

You might already know that hedge funds invest in multiple asset classes to generate maximum returns, but investing in them is not feasible for everyone. To bridge this gap, SEBI has introduced a new type of mutual fund in the market that invests in multiple assets to deliver higher returns and also provides portfolio management services. This fund is called Specialized Investment Fund (SIF)
 

What is Specialized Investment Fund?
 

Mutual funds are an easily accessible investment option and are well-regulated by SEBI and AMFI. However, due to various fees and expenses, returns from mutual funds often get reduced. On the other hand, portfolio management services (PMS) generate relatively higher returns but are less regulated compared to mutual funds, and they require a minimum investment of ₹50 lakh.

To combine the benefits of mutual funds and PMS, SEBI has introduced the Specialized Investment Fund structure. The minimum investment required in SIF is ₹10 lakh. As per the new regulations, these funds have been available for investment since April 1, 2025.
 

How Do Specialized Investment Funds Work?
 

  • Minimum investment required: ₹10 lakh.

  • SIFs invest in Equity, Derivatives, Debt, Real Estate, Startups, and other asset classes.

  • Unlike other funds, there are fewer investment restrictions, making them high-risk and high-return funds.

  • They are more professional than mutual funds and cheaper than PMS, which balances returns accordingly.


Eligibility Criteria for AMCs to Launch Specialized Investment Funds
 

SEBI has provided two routes for an AMC to launch SIFs:

  1. The AMC must have at least 3 years of experience and a total AUM of over ₹10,000 crore in that period.

  2. OR the AMC must have a Chief Investment Officer (CIO) with at least 10 years of experience and must have managed over ₹5,000 crore. Along with that, the fund manager must have at least 3 years of experience and managed an AUM of over ₹500 crore.


Strategies Used by Specialized Investment Funds
 

Equity-Oriented Strategies:
 

  • Equity Long-Short Fund: 80% of investments go into equity or equity-related instruments, and 20% is used for short-selling/hedging. This balances returns in both rising and falling markets.

  • Equity Ex-Top 100 Long-Short Fund: Investments are made outside the top 100 companies, focusing more on small-cap and mid-cap companies.

  • Sectoral Rotation Long-Short Fund: The fund takes advantage of different sectors. For example, during inflation or recession, this strategy becomes beneficial.
     

Debt-Oriented Strategies:
 

  • Similar long-short strategies are applied in the debt market as well.
     

Hybrid-Oriented Strategies:
 

  • Investments are spread across multiple asset classes such as Equity, Debt, and Real Estate.
     

Features of Specialized Investment Funds
 

  • Minimum Investment: ₹10 lakh per investor.

  • PMS Advantage: PMS requires at least ₹50 lakh investment, but with SIF, investors can enjoy PMS-like benefits with only ₹10 lakh.

  • Fund Structure: SIFs can be open-ended, closed-ended, or interval funds.

  • SIP, STP, SWP Facilities: If the minimum ₹10 lakh investment is maintained, investors can use SIP, STP, and SWP facilities.
     

Who Should Invest in Specialized Investment Funds?
 

SIF is a new investment option, requiring a minimum investment of ₹10 lakh. Looking at the risk-return profile, the following investors can consider SIF:
 

  • Institutional Investors, High Net-Worth Individuals (HNIs), and Professional Investors.

  • Investors who want the benefits of PMS with relatively lower investment amounts.

  • Investors with higher financial capacity who want to take advantage of opportunities across multiple asset classes.


Conclusion
 

Through Specialized Investment Funds, SEBI has introduced another powerful investment option in India. It allows retail investors to benefit from professional portfolio management services and also take advantage of the power of compounding through SIP, similar to mutual funds.

For investors who want higher returns than mutual funds and PMS-like benefits with lower investments, SIF is an excellent choice.

👉 If you want to start investing in SIF, download the Finshak app today and begin your investment journey!
Download Here


FAQs:

Q1. Can I invest in a Specialized Investment Fund?

Ans: Yes, if you have at least ₹10 lakh and the ability to take risks, you can invest in SIF.
 

Q2. When did Specialized Investment Funds start in India?

Ans: SEBI had released consultation papers multiple times regarding SIFs, but they have been open for investment since April 1, 2025.
 

Q3. Where do Specialized Investment Funds invest?

Ans: Unlike mutual funds, SIFs have fewer restrictions and can invest in Equity, Debt, Startups, Real Estate, etc.
 

Q4. What is the minimum investment required for SIF?

Ans: The minimum investment required is ₹10 lakh.
 

Q5. What is the minimum investment required for PMS?

Ans: PMS requires a minimum investment of ₹50 lakh, but through SIF, investors can enjoy similar benefits with just ₹10 lakh.


Disclaimer: Mutual Fund investments are subject to market risks. Please read all scheme related documents carefully before investing.

General Blog

Insurance

Mutual Funds

Product Blog

No posts found in this category.

Stock Market

No posts found in this category.

What is Mutual Fund

No posts found in this category.

Sandeep Deshmukh

Sandeep Deshmukh
My investment journey with Finshak has been nothing short of excellent. Their advisory team is extremely knowledgeable, always ready to clarify doubts, and provides well-researched recommendations. Their transparent approach and customer-centric service have given me great confidence in my financial decisions. I highly recommend Finshak to anyone looking for trustworthy investment guidance.

Abhijit Patil

Abhijit Patil
Before partnering with Finshak, I struggled to find the right investment options that aligned with my financial goals. Their team not only suggested suitable mutual funds but also explained the risks and potential returns clearly. Their continuous support and updates on market trends have helped me stay ahead in my financial planning. I am truly grateful for their expertise.

Sneha Kulkarni

Sneha Kulkarni
I always felt overwhelmed by the complexities of mutual fund investments, but Finshak made everything simple and easy to understand. They took the time to analyze my financial goals and provided a well-structured plan tailored to my needs. Thanks to their expert guidance, my investments are now growing steadily, and I feel more financially secure than ever.

Prakash Kadam

Prakash Kadam
Finshak has played a crucial role in my financial stability. Their team is highly professional, always available to answer queries, and provides honest advice without any hidden agendas. The personalized approach they offer has helped me build a well-balanced investment portfolio, ensuring steady growth and financial security. I am happy to have them as my investment partner.

Rohan Mane

Rohan Mane
I have been investing through Finshak for several years now, and their commitment to customer satisfaction is commendable. They provide regular updates, conduct portfolio reviews, and ensure that my investments are aligned with market trends. Their transparent and professional approach gives me confidence that my hard-earned money is in safe hands.

Pallavi Shinde

Pallavi Shinde
Finshak helped me transition from traditional saving methods to smart investing. They guided me in selecting the right mutual funds that suit my long-term financial goals. I appreciate their proactive approach, in-depth market analysis, and commitment to ensuring my investments generate maximum returns. I highly recommend Finshak to anyone looking for expert investment guidance.

Milind Gosavi

Milind Gosavi
Investing in mutual funds seemed complicated until I connected with Finshak. Their expert advisors not only simplified the process but also provided me with well-researched fund recommendations. Even during market fluctuations, their advice has helped me stay calm and make informed decisions. My portfolio is now performing better than I ever expected!Investing in mutual funds seemed complicated until I connected with Finshak. Their expert advisors not only simplified the process but also provided me with well-researched fund recommendations. Even during market fluctuations, their advice has helped me stay calm and make informed decisions. My portfolio is now performing better than I ever expected!

Rajnikant Bhosale

Rajnikant Bhosale
With so many investment options available, choosing the right one can be confusing. However, Finshak made this process seamless by carefully analyzing my financial situation and suggesting the best funds for my risk appetite. Their professional and honest approach gives me the confidence to invest without worries. Highly recommended!

Yogesh Satpute

Yogesh Satpute
Before associating with Finshak, I used to make random investment decisions without any proper planning. Their expert guidance helped me understand the importance of systematic investment planning. Now, my investments are more structured, goal-oriented, and yielding excellent returns. Thanks to Finshak, I am on track to achieve my financial aspirations.

Pranita Waghmare

Pranita Waghmare
I was new to investing and had very little knowledge about mutual funds. The team at Finshak not only educated me about different investment options but also helped me create a customized portfolio that aligns with my financial goals. Their continuous support and guidance have given me the confidence to invest wisely. I am very happy with their service!

Sunil Raut

Sunil Raut
Finshak’s team is highly professional and knowledgeable. They regularly monitor my investments and provide timely advice on how to optimize returns. Their ability to explain complex financial terms in simple language makes it easy for me to understand where my money is going. I trust them completely for all my investment needs.

Kavita More

Kavita More
I have been working with Finshak for a while now, and I must say they truly care about their clients. They take the time to understand my financial objectives and provide well-researched recommendations. Their customer service is top-notch, and they are always available to resolve queries. Thanks to them, my financial future looks bright and secure.