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SIF Glossary

Every term you'll encounter — explained in plain English. Built so you never get stuck on jargon during a Trustner consultation, an AMC scheme document, or an SEBI circular.

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The short answer

This glossary explains, in plain English, the terms used in SIF offer documents and in SEBI’s SIF rules. Five numbers define a SIF: a ₹10 lakh minimum per PAN, unhedged short exposure of up to 25% of net assets, gross exposure of at most 100%, a five-level risk band and a notice period of at most 15 working days.

Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026

The SIF rules in numbers
₹10 lakhMinimum per PAN across one SIF’s strategies (accredited investors exempt)SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026
25%Most a strategy may hold in unhedged short positions, as a share of net assetsSEBI circular on the SIF framework, 27 Feb 2025
100%Most a strategy’s gross exposure may reach, as a share of net assetsSEBI circular on the SIF framework, 27 Feb 2025
80%Least an Equity Long-Short or Sector Rotation strategy must hold in equitySEBI circular on the SIF framework, 27 Feb 2025
65%Least an Equity Ex-Top 100 strategy must hold outside the 100 largest companiesSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
4Most sectors a Sector Rotation strategy may hold, long or shortSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
7Strategy types SEBI permitsSEBI circular on the SIF framework, 27 Feb 2025
5Levels in the risk band, reviewed every monthSEBI circular on the SIF framework, 27 Feb 2025
15 working daysLongest permitted redemption notice periodSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026
30 daysHow long units stay frozen after an active breach before they are redeemedSEBI FAQs on SIFs, Part A, 22 Sep 2026
10 daysDeadline for publishing the alternate-month portfolioSEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Part A, 22 Sep 2026

Checked against SEBI’s SIF circular of 27 February 2025 and its SIF FAQs of 22 September 2026 on 4 November 2026. To cite this page: Mera SIF, “SIF Glossary”, https://www.merasif.com/glossary.html, checked 4 November 2026.

SIF concepts, explained in depth

31 short guides, each with SEBI’s rule and its paragraph, an example, and the live SIFs it applies to.

Strategy types

Derivatives and exposure limits

Investing and the ₹10 lakh rules

Redemptions and liquidity

Risk and disclosure

Fund houses and distributors

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A
Accredited Investor
An investor certified by a SEBI-recognised accreditation agency as meeting income or net-worth tests. Accredited investors are exempt from a SIF’s ₹10 lakh minimum (SEBI FAQ A7); each fund house sets its own minimum for them in the offer document. In depth →
Active Asset Allocator Long-Short
One of the seven SIF strategy types. It moves between equity, debt, their derivatives, REITs and InvITs and commodity derivatives, with no minimum in any one, and may short equity or debt up to 25% of net assets. 5 live. In depth →
Active Breach
When an investor’s own redemption or transfer takes their holding in a SIF below ₹10 lakh. Units are frozen for 30 days and redeemed if the threshold is not restored (SEBI FAQ A10). In depth →
AIF (Alternative Investment Fund)
A privately pooled fund regulated under the SEBI (Alternative Investment Funds) Regulations, 2012, with a ₹1 crore minimum. Category III AIFs run hedge-fund-like strategies and are taxed at the fund level; a SIF, like a mutual fund, is not.
AMC (Asset Management Company)
The company that manages a mutual fund’s schemes and SIF strategies. 18 fund houses have live SIF strategies today; the tracker lists them.
AMFI (Association of Mutual Funds in India)
The mutual fund industry body. It registers distributors and issues their ARN, and publishes NAVs, expense ratios and SIF data. Trustner Asset Services holds ARN-286886.
Arbitrage
Buying in one market and selling the equivalent in another, typically shares and their futures, to earn the price difference. A matched share-and-future pair is a hedged position, so it does not use a SIF’s 25% unhedged short limit.
ARN (AMFI Registration Number)
The registration number AMFI issues to every mutual fund and SIF distributor. You can check a distributor’s ARN on amfiindia.com.
B
Balanced Advantage Fund (BAF)
A mutual fund category that varies its mix of equity and debt, often by a valuation model. Unlike a BAF, a hybrid SIF strategy may also take unhedged short positions of up to 25% of net assets.
Benchmark
The broad market index a strategy is compared with. SIFs use a single-tier benchmark chosen to match the strategy, with an optional second tier. In depth →
C
CAGR (Compound Annual Growth Rate)
The constant yearly rate that would turn a starting value into an ending value. In SEBI’s advertising format, a fund’s performance is shown as CAGR once it is a year old.
Calendar Spread
Buying and selling futures on the same underlying with different expiries. SEBI treats it as a hedged position in a SIF, with no offsetting benefit (FAQ B26). In depth →
Chapter VI-C
The chapter of the SEBI (Mutual Funds) Regulations 1996, inserted with effect from 16 December 2024, that first provided for SIFs. Those Regulations have since been replaced by the SEBI (Mutual Funds) Regulations, 2026, which SEBI’s SIF FAQs of 22 September 2026 cite.
CIN (Corporate Identification Number)
The 21-character identifier the Ministry of Corporate Affairs gives every Indian company. Trustner Asset Services: U66301AS2023PTC025505.
CIO (Chief Investment Officer)
The senior investment head. A fund house that qualifies for a SIF by SEBI’s alternate route must appoint a SIF CIO with at least 10 years of fund management and ₹5,000 crore of average AUM managed. In depth →
Close-ended Strategy
A strategy with a fixed term and no ongoing redemptions. SEBI does not permit close-ended equity or debt SIF strategies (FAQ B24); any close-ended or interval strategy must list its units on a stock exchange. In depth →
Covered Call
Selling a call option on shares the strategy owns: it earns the premium but caps the gain above the strike. In a SIF it may be treated as a hedged position (SEBI FAQ B33). In depth →
D
Direct Plan
A plan bought without a distributor, so its expense ratio has no distribution cost. Trustner offers Regular plans only and is paid commission by the fund house.
Drawdown
The fall in NAV from a peak to a later low, usually shown as a percentage. It measures a past loss; it does not predict future losses.
E
Equity Ex-Top 100 Long-Short
A SIF strategy type with at least 65% in companies outside the 100 largest by market value; it may short only outside those 100. 7 live. In depth →
Equity Long-Short
One of the seven SIF strategy types: at least 80% in equity, with up to 25% of net assets in unhedged short positions through derivatives. 13 live. In depth →
EUIN (Employee Unique Identification Number)
The AMFI number of the individual employee of a distributor who handles a transaction. For SIF investments in the Regular plan, both the ARN and the EUIN must hold NISM Series V-D (SEBI FAQ C6). In depth →
Exit Load
A charge on redeeming within a set period. Each SIF strategy sets its own, or none, in its offer document and may change it by notice; the liquidity table shows every live strategy’s current load. In depth →
F
FATCA / CRS
Rules on reporting accounts of investors resident abroad for tax. They are part of SIF onboarding, as for mutual funds (SEBI FAQ A22); some fund houses restrict investors resident in the US or Canada.
Fund Manager
The person who runs a strategy’s portfolio, named in its offer document. SEBI prescribes no NISM certification for SIF fund managers (FAQ C5). Our fund-manager directory lists who runs each SIF.
G
Grievance Redressal
How complaints are resolved: first with the distributor and the fund house, then on SEBI SCORES (scores.gov.in) and SEBI’s Smart ODR platform. Trustner: grievance@trustner.in.
Gross Exposure
The total of a strategy’s positions in cash securities and derivatives. A SIF’s may not exceed 100% of net assets, so it cannot be leveraged. In depth →
H
Hedged Exposure
A derivative position that offsets the risk of something the strategy holds. It does not count toward the 25% unhedged short limit. In depth →
Hybrid Long-Short
A SIF strategy type with at least 25% in equity and at least 25% in debt, up to 25% of net assets in unhedged shorts, redeeming at most twice a week. 11 live; hybrid strategies held 62.6% of SIF assets at the end of September 2026 (AMFI). In depth →
I
Indexation
Raising the cost of an investment for inflation when computing long-term gains. It was withdrawn for transfers from 23 July 2024 by the Finance (No. 2) Act, 2024, so SIF long-term gains are taxed on the nominal gain.
Interval Strategy
A SIF strategy whose subscriptions or redemptions are not daily. Its units must be listed on a stock exchange. In depth →
ISID (Investment Strategy Information Document)
The offer document of a SIF strategy, the SIF equivalent of a mutual fund’s scheme information document. Read it with the KIM and the SAI. In depth →
K
KIM (Key Information Memorandum)
A short summary of the offer document, with the application form. It names the fund managers, the minimum, the loads and the redemption terms. In depth →
L
Long-Short
A strategy that may profit from falling prices as well as rising ones by holding short positions besides its holdings. In a SIF, unhedged shorts are capped at 25% of net assets. In depth →
LTCG (Long-Term Capital Gains)
Gains on units held beyond the long-term threshold. For SIFs under the Income-tax Act, 2025: 12.5% for equity-oriented strategies after 12 months, above ₹1.25 lakh a year; 12.5% on other strategies after 12 months if their units are listed (24 months if unlisted); slab rates on strategies with more than 65% in debt.
M
Master Circular for Mutual Funds
SEBI’s consolidated rulebook for mutual funds. The SIF rules first issued by circular on 27 February 2025 now sit in clause 21 of the Master Circular of 20 March 2026.
MFD (Mutual Fund Distributor)
An AMFI-registered intermediary who distributes mutual fund schemes and, with NISM Series V-D, SIFs. An MFD is paid commission by fund houses and is not a SEBI-registered investment adviser. In depth →
Minimum Investment Threshold
₹10 lakh across all strategies of one SIF, counted at PAN level. Mutual fund holdings do not count, and accredited investors are exempt. In depth →
N
NAV (Net Asset Value)
The value of one unit, calculated every business day. Units of listed interval strategies may trade on the exchange at a price different from NAV.
NFO (New Fund Offer)
The first subscription window of a new strategy, usually at a ₹10 face value. A new strategy has no performance history.
NISM Series V-D
The certification a distributor needs, with an ARN, to distribute SIFs; it also covers mutual funds. Series XIII holders certified by 21 September 2026 may continue until it expires if they also hold V-A (SEBI FAQ C1–C4). In depth →
Notice Period
A window before a redemption date in which requests must be made, at most 15 working days. The investor receives the NAV at the end of it. In depth →
NRI (Non-Resident Indian)
NRIs may invest in SIFs on each fund house’s terms in its offer documents; some restrict residents of the US or Canada.
O
Offsetting
Netting a derivative against a holding or another derivative on the same underlying and expiry, so the pair counts once toward exposure limits. In depth →
P
PAN (Permanent Account Number)
The tax identifier SIF rules use to count the ₹10 lakh minimum: all strategies of one SIF held under the same PAN are added together. For a joint folio, the first holder’s PAN counts. In depth →
Passive Breach
When a holding falls below ₹10 lakh only because the NAV fell. There is no forced exit, but only a full redemption is allowed while it stays below. In depth →
Performance Fee
A fee linked to returns above a hurdle, common in PMS and Category III AIFs. A SIF’s charges are set out in its offer document, within the mutual fund expense limits.
PMS (Portfolio Management Service)
A service regulated under the SEBI (Portfolio Managers) Regulations, 2020, with a ₹50 lakh minimum. The securities are held in the investor’s own demat account, and gains are taxed in the investor’s hands each time the manager sells.
Portfolio Disclosure
SIFs publish each strategy’s full portfolio, including derivatives, as at the end of every alternate month (May, July, September, November, January, March), within 10 days. In depth →
R
Regular Plan
The plan bought through a distributor; its expense ratio includes the distributor’s commission. Trustner offers Regular plans of SIFs and mutual funds.
Risk Band
The five-level risk label of a SIF strategy, from level 1 (lowest) to level 5 (highest). Set at launch, reviewed every month, and changed by notice. In depth →
RTA (Registrar and Transfer Agent)
The firm that processes transactions and keeps unit-holder records for a fund house. SIF holdings appear in the Consolidated Account Statement (SEBI FAQ A27).
S
SAI (Statement of Additional Information)
The offer document with details of the fund house, trustees and operations. It may be common to a fund house’s SIF and mutual funds (SEBI FAQ B49). In depth →
Scenario Analysis
A section of every ISID showing the loss an investor could suffer from given market movements, including from derivative positions. In depth →
SCORES (SEBI Complaints Redress System)
SEBI’s online complaints portal, scores.gov.in, for complaints not resolved by the distributor or the fund house. SEBI toll-free helpline: 1800 22 7575.
SEBI (Securities and Exchange Board of India)
The regulator of India’s securities markets, including SIFs. It set the SIF framework by circular on 27 February 2025, effective 1 April 2025, and published SIF FAQs on 22 September 2026.
Section 10(23D)
The Income-tax Act, 1961 provision that exempted SEBI-registered mutual funds (and so SIFs) from tax on their own income. From 1 April 2026 the same exemption sits in Schedule VII of the Income-tax Act, 2025. Gains are not taxed inside the fund; the investor is taxed on redemption or on income paid out.
Sector Rotation Long-Short
A SIF strategy type with at least 80% in equity across at most four sectors, which may short whole sectors up to 25% of net assets. 1 live. In depth →
SIF Brand
The distinct name and logo each SIF must carry, separate from its fund house’s mutual fund brand. In depth →
SIP (Systematic Investment Plan)
Regular instalments into a scheme. Fund houses may offer SIPs, STPs and SWPs in SIF strategies, within the ₹10 lakh threshold and the offer document’s terms (SEBI circular para 4.1.3; FAQ A13). In depth →
Smart ODR
SEBI’s online dispute resolution platform for securities-market disputes, including those about SIF investments, at smartodr.in.
STCG (Short-Term Capital Gains)
Gains on units sold before they become long-term. For SIFs under the Income-tax Act, 2025: 20% on equity-oriented strategies held up to 12 months; slab rates on debt-oriented strategies (more than 65% in debt) whatever the holding period; and slab rates on other strategies held up to 12 months if their units are listed (24 months if unlisted).
T
TDS (Tax Deducted at Source)
For resident investors, no tax is deducted at source on capital gains from redeeming units; for non-residents, tax is deducted at the applicable rates.
TER (Total Expense Ratio)
The annual cost of running a strategy, charged daily as a share of net assets. The base expense ratio is capped by asset slabs: 2.10% on the first ₹500 crore for equity-oriented strategies and 1.85% for others, lower above that; brokerage, transaction costs and levies come on top, so the total is higher. AMFI publishes both for every SIF, and our fund pages show both.
Trail Commission
The ongoing commission a fund house pays a distributor while the investor stays invested, as a share of assets. It is included in the Regular plan’s expense ratio; Trustner is paid this way.
U
Unhedged Short
A short derivative position that is not offsetting anything the strategy holds. A SIF may hold up to 25% of net assets in such positions; PMS and Category III AIFs have different rules. In depth →
V
VLRT Framework
quant Mutual Fund’s house investment framework, named in its July 2026 factsheet. The offer documents of the four qsif strategies we checked do not refer to it.
Beyond definitions

Vocabulary is the easy part. Allocation is the hard one.

Take the 60-second SIF Eligibility & Understanding Check — or use the calculator to see the post-tax difference versus a PMS or AIF structure.

Take the SIF eligibility & understanding check → Run the Tax Calculator

SIF terms, answered

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.

What is a SIF (Specialized Investment Fund)?

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.

Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); SEBI circular, Regulatory framework for Specialized Investment Funds (27 Feb 2025)

What does “long-short” mean in a SIF?

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.

Source: SEBI circular, Regulatory framework for Specialized Investment Funds (27 Feb 2025); SEBI, FAQs for Specialized Investment Funds, Parts B and C (22 Sep 2026)

What counts as an unhedged short position?

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.

Source: SEBI, FAQs for Specialized Investment Funds, Parts B and C (22 Sep 2026)

What is a notice period in a SIF?

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.

Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); MeraSIF liquidity table: every live SIF's redemption terms

Are SIF units listed on a stock exchange?

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.

Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026)

What is the difference between base and total expense ratio?

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.

Source: 360 ONE notice on the expense limits under the SEBI (MF) Regulations, 2026 (31 Mar 2026); AMFI SIF expense ratio disclosure, shown on each MeraSIF fund page

What is a SIF risk band?

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.

Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); SEBI, FAQs for Specialized Investment Funds, Parts B and C (22 Sep 2026); MeraSIF changes log: fund house notices

How often does a SIF disclose its portfolio?

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.

Source: SEBI, FAQs for Specialized Investment Funds, Part A: investors (22 Sep 2026); SEBI, FAQs for Specialized Investment Funds, Parts B and C (22 Sep 2026)

All 50 SIF questions, answered →