Question 1

What is a SIF (Specialized Investment Fund)?

Accepted Answer

A Specialized Investment Fund (SIF) is a mutual fund product, regulated by SEBI, that may use strategies regular mutual funds cannot, including limited unhedged short positions through derivatives. SEBI describes it as bridging the gap between regular mutual fund schemes and Portfolio Management Services (PMS). Each SIF strategy is run by a mutual fund under a separate SIF brand.

Question 2

Who regulates SIFs, and under which rules?

Accepted Answer

SEBI regulates SIFs under the SEBI (Mutual Funds) Regulations, 2026. The framework was first set out in SEBI's circular of 27 February 2025, which took effect on 1 April 2025, and now sits in clause 21 of SEBI's Master Circular for Mutual Funds.

Question 3

When did SIFs start in India?

Accepted Answer

The SIF framework took effect on 1 April 2025, and the first strategy to allot units was qSIF Equity Long-Short, on 7 October 2025. Launches have continued since: 37 strategies from 18 fund houses are live today.

Question 4

How many SIFs are there in India?

Accepted Answer

37 SIF strategies from 18 fund houses are live on our tracker, which follows AMFI's daily NAV feed. AMFI's monthly report for September 2026 counted 34 schemes; strategies launched after that month appear in the next report.

Question 5

How big is the SIF category?

Accepted Answer

₹38,287 crore at the end of September 2026, according to AMFI's monthly SIF report. Hybrid Long-Short strategies held the largest share, 62.6% of the total. Month-by-month figures are in our SIF AUM hub.

Question 6

How is a SIF different from a mutual fund?

Accepted Answer

A SIF is a mutual fund product with three differences: a ₹10 lakh minimum per investor (PAN) across the SIF, permission to take unhedged short positions of up to 25% of net assets through exchange-traded derivatives, and its own set of strategy categories. It keeps mutual fund safeguards such as trustees, daily NAV and SEBI-format disclosure, but carries relatively higher risk.

Question 7

How is a SIF different from PMS?

Accepted Answer

In a SIF you own units of a pooled strategy; in a PMS the securities are held in your own account and managed for you. A SIF's minimum is ₹10 lakh, a PMS's ₹50 lakh. A SIF is taxed like a mutual fund, mostly when you redeem, while PMS gains are taxed in your hands each time the manager sells.

Question 8

Is a SIF a hedge fund?

Accepted Answer

No. A SIF is a mutual fund product with statutory limits: unhedged short exposure of at most 25% of net assets, and total gross exposure across all holdings and derivatives of at most 100% of net assets, which rules out leverage. Hedge-fund-like strategies in India sit in Category III AIFs, which have a ₹1 crore minimum and different rules.

Question 9

Why did SEBI introduce SIFs?

Accepted Answer

To bridge the gap between regular mutual funds and PMS, in SEBI's words: to give investors with ₹10 lakh or more access to more flexible strategies, such as limited short selling, inside the regulated mutual fund framework, with its disclosure and investor-protection rules.

Question 10

What types of SIF strategies are allowed?

Accepted Answer

Seven. Three equity types (Equity Long-Short, Equity Ex-Top 100 Long-Short, Sector Rotation Long-Short), two debt types (Debt Long-Short, Sectoral Debt Long-Short) and two hybrid types (Active Asset Allocator Long-Short, Hybrid Long-Short). No debt strategy is live yet.

Question 11

Can a fund house run two SIFs of the same type?

Accepted Answer

No. To avoid proliferation, SEBI allows only one strategy in each category per SIF, so a fund house can run at most seven SIF strategies, one of each type.

Question 12

What is an Equity Long-Short Fund?

Accepted Answer

An Equity Long-Short Fund invests at least 80% in equity and equity-related instruments and may take unhedged short positions of up to 25% of net assets through derivatives. It may offer daily redemption, or less often if the fund house chooses.

Question 13

What is an Equity Ex-Top 100 Long-Short Fund?

Accepted Answer

It invests at least 65% in equity of companies outside the 100 largest by market capitalisation, using AMFI's half-yearly list, and may take unhedged short positions of up to 25% in stocks other than large caps. It may offer daily redemption.

Question 14

What is a Sector Rotation Long-Short Fund?

Accepted Answer

It invests at least 80% in equity of at most four sectors, chosen from a list disclosed in its offer document, and may take unhedged short positions of up to 25% at sector level. It cannot be long and unhedged short in the same sector at the same time.

Question 15

What is a Hybrid Long-Short Fund?

Accepted Answer

An interval strategy that keeps at least 25% in equity and at least 25% in debt, and may take unhedged short positions of up to 25% through equity and debt derivatives. It can redeem at most twice a week.

Question 16

What is an Active Asset Allocator Long-Short Fund?

Accepted Answer

An interval strategy that moves across equity, debt, equity and debt derivatives, REITs and InvITs, and commodity derivatives, with no minimum in any one asset class, and may take unhedged short positions of up to 25%. It can redeem at most twice a week.

Question 17

What are Debt Long-Short and Sectoral Debt Long-Short funds?

Accepted Answer

The two debt categories. A Debt Long-Short Fund invests in debt across durations and can short through exchange-traded debt derivatives; a Sectoral Debt Long-Short Fund holds debt of at least two sectors, at most 75% in one, with up to 25% unhedged short exposure. Both can redeem at most once a week; neither type has a live strategy yet.

Question 18

What does “long-short” mean in a SIF?

Accepted Answer

It means the strategy can position for prices to fall as well as rise. Besides buying securities (going long), it may take short positions through exchange-traded derivatives, with unhedged short exposure capped at 25% of net assets. Short positions that hedge existing holdings are allowed in addition.

Question 19

What counts as an unhedged short position?

Accepted Answer

A short derivative position with nothing offsetting it in the portfolio: a short future, or a written call or put, that is not covering an existing holding. Only these count toward the 25% limit. Short positions that hedge holdings do not, and unhedged long derivative positions are counted as ordinary exposure.

Question 20

Can a SIF be close-ended?

Accepted Answer

No, not for equity or debt strategies: SEBI does not permit close-ended equity or debt SIF strategies. Strategies are open-ended or interval, within what their category allows.

Question 21

What is the minimum investment in a SIF?

Accepted Answer

₹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.

Question 22

Can I meet the ₹10 lakh minimum across two fund houses?

Accepted Answer

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.

Question 23

Do accredited investors need ₹10 lakh to invest in a SIF?

Accepted Answer

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.

Question 24

Who is an accredited investor?

Accepted Answer

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.

Question 25

How does the minimum apply to a joint holding?

Accepted Answer

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.

Question 26

Can I invest in a SIF through a SIP?

Accepted Answer

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.

Question 27

Can NRIs invest in SIFs?

Accepted Answer

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.

Question 28

What KYC do I need for a SIF?

Accepted Answer

The same as for mutual funds: KYC, PAN, bank-account validation, nomination, and FATCA/CRS declarations, unless SEBI provides otherwise.

Question 29

How do I invest in a SIF?

Accepted Answer

Through a mutual fund distributor certified for SIFs, or directly with the fund house, online or offline. Read the strategy's offer documents first; the units are held in a SIF folio, separate from your mutual fund holdings, and appear in your Consolidated Account Statement.

Question 30

What happens if a redemption takes my SIF below ₹10 lakh?

Accepted Answer

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.

Question 31

What if a market fall takes my SIF below ₹10 lakh?

Accepted Answer

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.

Question 32

Can I redeem a SIF on any day?

Accepted Answer

It depends on the strategy. SEBI lets equity strategies offer daily redemption, but debt strategies at most weekly and hybrid strategies at most twice a week, and fund houses may choose less often. Of 37 live strategies, 21 redeem on every business day and 16 only on set days (see each one).

Question 33

What is a notice period in a SIF?

Accepted Answer

A wait of up to 15 working days that some strategies apply before paying a redemption, at the NAV at the end of the period. It is set by the fund house in the offer document; 2 live strategies use one today.

Question 34

Are SIF units listed on a stock exchange?

Accepted Answer

Units of interval and close-ended strategies must be listed on at least one recognised stock exchange, so they can also be sold there between dealing days. Open-ended strategies need not be listed.

Question 35

Is there a lock-in in a SIF?

Accepted Answer

There is no uniform lock-in. Any lock-in, maturity, exit load or other restriction depends on the strategy and must be stated in its offer document.

Question 36

Do SIFs charge an exit load?

Accepted Answer

Most do, on early redemption. Loads on live strategies range from nil to 3%, charged on redemptions within 15 days to a year of investing, and 5 strategies charge none. Fund houses change loads by notice, usually for new investments only; our changes log records each change.

Question 37

What cut-off times and NAV rules apply to SIFs?

Accepted Answer

The same as for mutual funds of the same type (equity, debt or hybrid), unless the offer document says otherwise. NAV is calculated daily.

Question 38

What is the maximum expense ratio of a SIF?

Accepted Answer

Under the SEBI (Mutual Funds) Regulations, 2026, the base expense ratio is capped at 2.10% a year on the first ₹500 crore for equity-oriented strategies and 1.85% for others, with lower caps as assets grow. Brokerage, transaction costs and statutory levies are charged on top, within their own limits.

Question 39

What is the difference between base and total expense ratio?

Accepted Answer

The base expense ratio covers management fees, running costs and distribution; the total adds brokerage, transaction costs and statutory levies. AMFI publishes both for every SIF, and each of our fund pages shows both for the Regular plan.

Question 40

What is a SIF risk band?

Accepted Answer

A five-level label from 1 (lowest risk) to 5 (highest) that every strategy carries. It is set at launch, reviewed every month, and a change is announced by notice; some strategies have moved between levels several times, as our changes log shows.

Question 41

How often does a SIF disclose its portfolio?

Accepted Answer

Every two months: as at the end of May, July, September, November, January and March, including derivative positions, published on the fund house's and AMFI's websites within 10 days of the month end.

Question 42

What should I read before investing in a SIF?

Accepted Answer

The strategy's Investment Strategy Information Document (ISID), Key Information Memorandum (KIM) and Statement of Additional Information (SAI): especially the objective, asset allocation, derivatives exposure, risk band, scenario analysis, redemption frequency, notice period, fees and exit load. Later notices can change these, so check them too.

Question 43

What are the main risks of a SIF?

Accepted Answer

SEBI lists market and volatility risk, including loss of capital; liquidity risk from less frequent redemption or a notice period; derivatives, short-position, basis and counterparty risks; and concentration, credit or interest-rate risk, depending on the strategy.

Question 44

How are SIF gains taxed?

Accepted Answer

Like mutual fund units, under the Income-tax Act, 2025, so it depends on how the strategy is classified. Equity-oriented strategies (at least 65% in listed Indian equity): 20% on gains within 12 months, 12.5% after, with ₹1.25 lakh of long-term gains a year exempt. Strategies with more than 65% in debt and money market instruments: slab rates. Others, mostly hybrids and asset allocators: slab rates up to 12 months if the units are listed on an exchange, as SEBI requires for interval strategies (24 months if unlisted), and 12.5% after. Check the offer document and a tax adviser.

Question 45

Are hybrid SIFs taxed like equity funds?

Accepted Answer

Not necessarily: it depends on the portfolio, and each fund house states its view in its offer document. Tata, for example, treats Titanium Hybrid Long-Short, whose units are listed, as other than equity-oriented, so units held 12 months or less are taxed at slab rates on redemption and later gains at 12.5%. SBI’s Magnum Hybrid and ICICI Prudential’s iSIF Hybrid are taxed as equity-oriented. Quant’s qsif documents state a 24-month period for its non-equity strategies.

Question 46

Is a SIF taxed inside the fund?

Accepted Answer

No. Like any mutual fund, a SIF pays no tax on its own income: the exemption sits in Schedule VII of the Income-tax Act, 2025 (section 10(23D) of the 1961 Act before 1 April 2026). You are taxed on your gains when you redeem, or on any income it pays out.

Question 47

Who can launch a SIF?

Accepted Answer

A SEBI-registered mutual fund that qualifies by one of two routes: three years in operation with average AUM of ₹10,000 crore over the past three years, or by appointing a CIO with 10 years' fund-management experience (average AUM ₹5,000 crore) and a second fund manager with three years (₹500 crore). Either way, no SEBI action against the sponsor or AMC in the past three years.

Question 48

Why do SIFs have different names from their fund houses' mutual funds?

Accepted Answer

SEBI requires each SIF to have a distinct identity, separate from its mutual fund, so investors can tell SIF strategies from regular schemes. That is why names such as Altiva (Edelweiss), Magnum (SBI) and qsif (quant) differ from the fund houses' mutual fund brands.

Question 49

What certification does a distributor need to sell SIFs?

Accepted Answer

NISM Series V-D (Mutual Fund – Specialized Investment Fund Distributors) and a valid ARN. Distributors who passed NISM Series XIII by 21 September 2026 may continue until it expires, provided they also hold Series V-A.

Question 50

How are SIF distributors paid?

Accepted Answer

By commission set by each fund house, under AMFI's rules for ARN holders, paid out of the Regular plan's expenses. Direct plans carry no distributor commission.

SIF Frequently Asked Questions

1Basics

2Strategy types

3Investing and eligibility

4The ₹10 lakh rules

5Redemptions and liquidity

6Costs

7Risk and disclosure

8Tax

9Fund houses and distributors