Specialised Investment Funds
SEBI’s newest investment category, between mutual funds and PMS — long-short and hedged strategies in a regulated, mutual-fund-style structure.
Overview
Between mutual funds and PMS
Specialised Investment Funds let fund managers use strategies a regular mutual fund cannot — such as limited short positions through derivatives — while keeping mutual-fund-style regulation and disclosure.
A SIF is launched by an eligible mutual fund house under a separate SIF brand. The minimum investment is far lower than PMS or Category III AIFs, but much higher than a mutual fund, because these strategies are meant for investors who already have a settled core portfolio.
As an AMFI-registered SIF and Mutual Fund Distributor (ARN-251600 / ARN-36894), Amcord Assets helps eligible investors understand SIF strategies, check whether one fits, and complete the paperwork. We distribute SIF strategies; we do not manage any.
Core concepts
SIFs in four answers
The basics, before you look at any strategy.
What is a SIF?
A Specialised Investment Fund is a pooled investment vehicle regulated by SEBI, introduced in 2025 under the mutual fund regulations. It sits between a mutual fund and Portfolio Management Services (PMS) in terms of flexibility and minimum investment.
How does a SIF work?
Money from many investors is pooled and managed by an eligible asset management company under a separate SIF brand. Each SIF follows one SEBI-defined strategy, set out in its offer document, and is subject to mutual-fund-style disclosure.
Who can invest?
Investors who can commit at least ₹10 lakh per PAN, counted across all SIF strategies of one AMC. Accredited investors are treated differently under SEBI’s framework. NRIs may invest subject to the AMC’s acceptance rules.
What are the benefits and risks?
SIFs give access to long-short and hedged strategies that regular mutual funds cannot run. The same tools add risk: derivative and short positions can magnify losses, and redemptions may be less frequent than in an open-ended mutual fund.
How they compare
Mutual fund vs SIF vs Category III AIF
| Mutual fund scheme | SIF | Category III AIF | |
|---|---|---|---|
| Regulated under | SEBI Mutual Fund Regulations | SEBI Mutual Fund Regulations (SIF framework) | SEBI AIF Regulations |
| Minimum investment | From ₹100 | ₹10 lakh per PAN, per AMC | ₹1 crore |
| Short positions | Hedging only | Up to 25% of net assets through unhedged derivatives | Permitted, as per fund terms |
| Leverage | Not permitted | Not permitted beyond SEBI exposure limits | Permitted within limits |
| Redemptions | Mostly daily | Daily to periodic, as per the offer document | As per fund terms, often with lock-in |
| Taxation | Gains taxed in investors’ hands | Taxed like mutual funds | Mostly taxed at fund level |
| Disclosure | Regular portfolio disclosure | Mutual-fund-style disclosure | Periodic reports to investors |
Summary for understanding only. The SEBI framework and each strategy’s offer document govern the actual terms.
Investment strategies
Seven strategies, three categories
SEBI allows SIFs to run only these seven strategies, and each AMC may launch one SIF per strategy.
Equity-oriented
Equity Long-Short
Mainly equities (at least 80%), with short exposure of up to 25% of net assets through unhedged derivatives.
Equity Ex-Top 100 Long-Short
Invests mainly beyond the 100 largest companies, with limited short positions in that space.
Sector Rotation Long-Short
Concentrates in up to four sectors at a time, rotating as views change, with limited sector-level shorts.
Debt-oriented
Debt Long-Short
Debt instruments across durations, with short positions through exchange-traded debt derivatives.
Sectoral Debt Long-Short
Debt across at least two sectors, with limited short exposure through debt derivatives.
Hybrid
Active Asset Allocator Long-Short
Moves between equity, debt, derivatives, REITs/InvITs and commodity derivatives as conditions change.
Hybrid Long-Short
Holds at least 25% each in equity and debt, with limited short exposure through derivatives.
How we work
Suitability before strategy
A SIF is never the first product we discuss. We look at the whole picture first.
1. Your existing portfolio
Core mutual funds, emergency reserve, insurance and near-term cash needs.
2. Eligibility and comfort
The ₹10 lakh minimum, your experience with volatility, and your understanding of derivatives.
3. The offer document
Strategy, risks, redemption frequency, notice periods, costs and taxation — read together.
4. Invest and service
Paperwork, statements and every service request afterwards, like any other investment with us.
Is it for you?
Who it may suit, and who should avoid it
May suit investors who
- Already have a settled core portfolio of mutual funds or other investments
- Have an emergency reserve and adequate insurance in place
- Can invest ₹10 lakh or more without needing it at short notice
- Understand how derivatives and short positions work, including their risks
- Are comfortable with a new category that has a limited track record
Should avoid if you
- May need the money at short notice
- Are uncomfortable with derivatives or short positions
- Are investing for the first time
- Are looking for assured returns or capital protection
- Would be stretching to meet the minimum investment
Risk disclosure
Risks to understand first
New category
SIFs are recent, and regulations, operational practices and tax treatment may evolve.
Derivatives and shorts
Unhedged derivative and short positions can magnify losses, not just gains.
Strategy risk
Results depend heavily on the fund manager’s calls and the chosen strategy.
Limited track record
Most strategies have little or no history to judge them on.
Liquidity
Redemptions may be weekly or periodic, with notice periods, unlike daily mutual funds.
Concentration and valuation
Sector-focused or less-liquid holdings can be volatile and harder to value.
No capital protection and no assured returns. SIF investments are subject to market risks, including the possible loss of principal. Read the offer document, risk factors and redemption terms carefully before investing. This page is for information and education only; it is not investment advice, an offer or a solicitation. The offer document of each SIF governs its terms. Amcord Assets Pvt Ltd is an AMFI-registered SIF and Mutual Fund Distributor (ARN-251600 / ARN-36894) and does not manage any SIF strategy.
Thinking about a SIF?
Talk to us first. We will look at your existing portfolio and tell you plainly whether a SIF fits — and which strategy, if any.