Eligibility rules, minimum ticket, accredited-investor route and NRI treatment. Meeting these rules means you may invest in a SIF; it does not mean a SIF is appropriate for you.
The short answer
To invest in a SIF you need ₹10 lakh, counted at PAN level across all strategies of one SIF; mutual fund holdings do not count. Accredited investors are exempt, and the fund house sets their minimum. A redemption may not take you below ₹10 lakh, and if a market fall does, you can only redeem in full.
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026
| Minimum | ₹10 lakh, at PAN level, across all strategies of one SIFSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026 |
|---|---|
| What counts toward it | SIF holdings only; regular mutual fund holdings, even with the same fund house, do notSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| Accredited investors | Exempt from the ₹10 lakh minimum; each fund house sets its own figureSEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| Joint folio | Assessed on the first holder’s PANSEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| Several investments on one day | May be added together to reach ₹10 lakh, if all are in by the cut-off and paidSEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| SIP, STP and SWP | Allowed, on the offer document’s terms and within the ₹10 lakh thresholdSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| A redemption that would go below ₹10 lakh | Active breach: all units in that SIF are frozen for 30 days, then redeemed unless the threshold is restoredSEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| A market fall below ₹10 lakh | Passive breach: no forced exit, but while below, only a full redemption is allowedSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| KYC | As for mutual funds: KYC, PAN, bank validation, nomination and FATCA/CRSSEBI FAQs on SIFs, Part A, 22 Sep 2026 |
| NRIs | On each fund house’s terms in its offer documents; some restrict residents of the US or Canadae.g. Edelweiss MF notice, 10 Sep 2026 |
| Fund house employees | Mandatory ‘skin in the game’ investments are outside the ₹10 lakh ruleSEBI clarification, 9 Apr 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026 |
SEBI's SIF framework defines investor eligibility along four axes: minimum ticket, KYC, residency, and entity type. All four must be cleared before subscription.
| Minimum investment | ₹10 lakh aggregate per PAN per AMC across all SIF strategies of that AMC |
| Accredited investors | Exempt from the ₹10 lakh threshold; the fund house sets its own minimum in the offer document. Requires certification by a SEBI-recognised accreditation agency |
| KYC | Standard mutual fund KYC (Aadhaar, PAN, address proof). One-time across SEBI-registered intermediaries |
| PAN required | Yes — mandatory for all SIF investors |
| Residency | Resident Indians, NRIs (subject to AMC's NRI policy), HUFs, body corporates, partnership firms, registered trusts, banks, FPIs (where permitted by SID) |
| Excluded entities | Persons resident in jurisdictions on FATF black/grey list; AMCs may impose additional exclusions per scheme SID |
| Age | Investor must be at least 18 years (some AMCs accept minor investments through a guardian-operated folio) |
| Entity types accepted | Individual, HUF, Pvt Ltd, LLP, Partnership, Registered Trust, Bank, NBFC, Insurance Co., FPI (per SID) |
The ₹10 lakh minimum is aggregate per PAN per AMC. This single rule has more nuances than most investors realise. Here are the four scenarios you'll encounter.
Subscribe ₹10 lakh to one SIF strategy at one AMC. Eligible. This is the standard entry route.
₹6L in Strategy A and ₹4L in Strategy B, both offered by the same AMC. Total at that AMC = ₹10L. Eligible. The aggregate floor is at the AMC level, not strategy level.
₹10L with AMC X + ₹10L with AMC Y. Each AMC needs its own ₹10L aggregate. So total minimum = ₹20L. Eligible only if ₹10L is met at each AMC.
₹5L with AMC X + ₹5L with AMC Y. Not eligible. The ₹10L floor is missed at both AMCs. Eligibility needs at least ₹10L at each AMC invested with.
Two scenarios — depending on whether the breach is passive (market-driven) or active (your redemption).
If your SIF NAV drops 30% and your ₹10L investment is worth ₹7L on paper — no action required. You can stay invested. SEBI specifically clarified this in the 9 April 2025 circular: passive market loss does not trigger forced redemption.
If your SIF holding is worth ₹12L and you wish to redeem ₹3L — bringing your residual below ₹10L — the AMC will force a full redemption. Partial redemptions that take you below ₹10L are not permitted. Either redeem fully, or limit your redemption so the residual stays at or above ₹10L.
SEBI provides a 30-day rebalancing window in case of an inadvertent breach (e.g. demerger, scheme merger, structural change). During this window the investor can either top up to restore the ₹10L floor or exit completely.
SEBI’s accredited-investor framework (introduced by the SEBI (Alternative Investment Funds) (Third Amendment) Regulations, 2021) also applies to SIFs: SEBI’s SIF circular of 27 February 2025 exempts accredited investors from the ₹10 lakh minimum; each fund house then sets its own minimum for them in the offer document (₹1 lakh at Platinum SIF and ₹25,000 at Diviniti SIF, for example). Accreditation is available to individuals, HUFs and family trusts who meet specified income, net-worth or financial-asset thresholds. As of May 2026, the accreditation infrastructure is still maturing — most retail investors will use the standard ₹10 lakh route.
Annual income of ₹2 crore+ (individual) or ₹1 crore+ (HUF / family trust) for the most recent assessment year.
Net worth of ₹7.5 crore+, of which at least ₹3.75 crore is held in financial assets (excluding primary residence).
Annual income of ₹1 crore+ AND net worth of ₹5 crore+, with at least 50% of net worth in financial assets.
Meeting the rules above means you may invest in a SIF. It does not show whether a SIF, or any particular strategy, is appropriate for you: that is assessed one to one, in a documented process that uses your risk profile. These are the product features to understand first.
SIFs can use exchange-traded derivatives and take unhedged short positions of up to 25% of NAV. Short positions can reduce or add to losses; they do not guarantee downside protection.
Every SIF strategy discloses a SEBI-mandated risk band on a 5-level scale. A strategy's band can change over time, so check the current one in its documents.
Some SIF strategies allow redemption on every business day; others only weekly, monthly or at set intervals, and a notice period of up to 15 working days is permitted. Each strategy's ISID and KIM state its terms.
SIFs are taxed on the same basis as mutual funds. The treatment depends on whether a strategy is equity-oriented, hybrid or debt-oriented, and on your holding period. See SIF tax treatment, and consult a tax adviser for your own case.
SEBI added the SIF framework to the Mutual Funds Regulations in December 2024, so every strategy has a short track record. Returns are not guaranteed.
The ₹10 lakh minimum is a fixed amount per AMC. How large a share of an investor's money it represents depends on their total, which is one of the points a one-to-one suitability review covers.
NRI eligibility for SIF follows the underlying mutual fund framework. Each AMC's scheme information document (SID) specifies which residency categories are accepted. As a general rule:
Checked against SEBI’s FAQs on Specialized Investment Funds (22 September 2026) and its SIF circulars on 4 November 2026. Counts and totals come from our tracker and AMFI’s monthly report, and update when they change. To cite: Mera SIF, “SIF FAQs”, https://www.merasif.com/faq.html.
₹10 lakh, counted across all the strategies of one SIF at your PAN level. Regular mutual fund holdings, even with the same fund house, do not count toward it. Accredited investors are exempt.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); SEBI circular, Regulatory framework for Specialized Investment Funds (27 Feb 2025)
No. The threshold applies to each SIF separately, so ₹5 lakh in each of two different SIFs meets neither. To invest with two SIFs you need ₹10 lakh in each; within one SIF, you can split it across its strategies.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026)
No. Accredited investors are exempt from the ₹10 lakh threshold, and each fund house sets its own minimum for them in the offer document: ₹1 lakh at Platinum SIF, for example, and ₹25,000 at Diviniti SIF.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); Platinum SIF notice cum addendum SIF/05/2026 (29 Jun 2026); Diviniti SIF notice cum addendum 03/2025 (3 Dec 2025)
An investor certified by a SEBI-recognised accreditation agency as meeting income or net-worth tests. For an individual, for example: annual income of ₹2 crore or more, or net worth of ₹7.5 crore or more with at least half of it in financial assets. SEBI consulted on revising the framework in August 2026.
Source: SEBI (Alternative Investment Funds) Regulations, 2012, regulation 2(1)(ab) on accredited investors, as amended in 2021; SEBI consultation paper on review of the accredited investor framework (Aug 2026)
It is assessed on the first holder's PAN. For a joint folio, eligibility and the ₹10 lakh threshold are checked against the principal (first) holder.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026)
Yes, where the strategy offers one. SEBI allows SIPs, STPs and SWPs in SIFs, subject to each offer document and the ₹10 lakh threshold. Minimum SIP instalments are set by each fund house: ₹1,000 at qsif and ₹5,000 at Platinum SIF, for example.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); qsif notice cum addendum 10/2026 (22 Jun 2026); Platinum SIF notice cum addendum SIF/05/2026 (29 Jun 2026)
Generally yes, on each fund house's terms in the offer document. Several restrict residents of the US and Canada: Edelweiss, for example, accepts Canada-resident NRIs and PIOs only while they are present in India, from 18 September 2026.
Source: Edelweiss MF notice on subscriptions from NRIs/PIOs in Canada (10 Sep 2026)
Your units in that SIF are frozen for 30 calendar days. If you top up to ₹10 lakh within that time they are unfrozen; if not, they are redeemed at the NAV of the next business day after day 30. A fund house may simply reject a redemption that would cause this.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); SEBI circular, Clarification on the SIF framework (9 Apr 2025)
Nothing is forced. A fall caused only by NAV is a passive breach and you can stay invested. While the value is below ₹10 lakh, though, you can redeem only your whole investment in that SIF, not part of it.
Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); SEBI circular, Clarification on the SIF framework (9 Apr 2025)