SIF Glossary

A SEBI-defined investor category for individuals, HUFs and family trusts that meet specific income, net worth or financial-asset thresholds. For SIF, accreditation reduces the minimum investment from ₹10 lakh to ₹1 lakh. Conferred by SEBI-recognised Accreditation Agencies; renewable annually.

One of the seven SEBI-permitted SIF strategy categories. Hybrid in nature — dynamically allocates across equity, debt and commodity using exchange-traded derivatives. 360 ONE's DynaSIF is the first AAA SIF in India.

A SEBI-regulated pooled investment vehicle for HNIs (₹1 crore minimum). Cat-III (hedge-fund-style) is the comparable category to SIF. Critical difference: AIF Cat-III is taxed at the fund level at slab rates; SIF is taxed at LTCG (12.5% for equity-oriented).

The entity that designs, launches and manages SIF (and mutual fund) schemes. As of May 2026, 9 AMCs have launched live SIFs in India: ICICI Prudential, Edelweiss, SBI, Quant, ITI, Tata, Bandhan, ABSL, 360 ONE.

The industry body for mutual fund and SIF distribution. Issues the ARN (registration number) every distributor must hold. Trustner Asset Services holds ARN-286886.

Low-risk profit captured by simultaneously buying in one market and selling the same (or equivalent) asset in another (typically cash + futures). Hybrid SIFs use cash-future arbitrage as a low-volatility yield source — Edelweiss Altiva is built around this.

The unique number issued by AMFI to every authorised mutual fund and SIF distributor. Investors should always verify their distributor's ARN at amfiindia.com.

A mutual fund category that dynamically allocates between equity and debt based on market valuation. Many hybrid SIFs (e.g. iSIF Hybrid LS) are positioned as BAF replacements with sharper tools (25% short capability, wider allocation bands).

A core SIF transparency mandate. Every SIF must publish its full portfolio every two months, in a standardised ISID format. This is double the disclosure of PMS (monthly + on-demand) and AIF (quarterly).

The geometric average annual return of an investment. Most SIF return claims are quoted in CAGR. Always compare post-tax CAGR across wrappers — that's where SIF wins.

The chapter of the SEBI (Mutual Funds) Regulations 1996 that governs SIFs, inserted via amendment effective 16 December 2024. Every SIF is launched under Chapter VI-C, which is why it inherits MF tax treatment.

In SIF context: the senior fund manager responsible for the SIF strategy. Under SEBI's Route 2 eligibility, the SIF CIO must have ≥10 years FM experience and have managed ≥₹5,000 Cr AUM.

Unique 21-character identifier issued by the Ministry of Corporate Affairs to every Indian company. Trustner Asset Services CIN: U66301AS2023PTC025505.

A SIF with a fixed maturity. Units are issued only at NFO; investors exit by selling units on NSE/BSE (mandatory listing) or at maturity. Less common than open-ended SIFs.

An options strategy where the fund sells call options on stocks it already owns. Generates premium income but caps upside. Used heavily in income-oriented hybrid SIFs (Altiva, Magnum).

A scheme variant with lower TER because no distributor commission is included. Trustner does not deal in Direct Plans — we exclusively offer Regular Plans and are remunerated through trail commissions disclosed by the AMC.

The peak-to-trough fall in NAV. Equity-oriented SIFs can experience 20-30%+ drawdowns in real corrections. Hybrid SIFs typically 5-10%. The 25% short cap helps but doesn't eliminate drawdowns.

One of the seven SEBI SIF categories. ≥80% equity, up to 25% unhedged short via derivatives. Examples: qSIF Equity LS (Quant), Diviniti (ITI), DynaSIF Equity (360 ONE).

SEBI category requiring ≥65% allocation to stocks ranked >100 by market cap (i.e. mid + small cap). Long-short SMID is structurally where alpha is highest. Examples: iSIF Equity Ex-Top 100 (ICICI Pru), qSIF Ex-Top 100.

A redemption charge for early exit. Most SIFs charge 0.5-1% on redemption within 12 months; nil thereafter. Always check the SID for the specific load schedule.

AMFI-issued ID for the specific employee or relationship manager handling your transaction. Mandatory on every transaction form. Each Trustner sub-broker and relationship manager holds their own EUIN — the EUIN that appears on your transaction confirmation identifies the individual servicing your folio.

US Foreign Account Tax Compliance Act. US-resident NRIs face restrictions on which AMCs accept their SIF subscriptions due to FATCA reporting overhead. Verify per-scheme NRI policy before subscribing.

The professional running the SIF portfolio day-to-day. Every SIF FM must hold the NISM-mandated SIF certification. Marquee SIF FMs include Sankaran Naren (ICICI Pru), Bharat Lahoti (Edelweiss), Gaurav Mehta (SBI).

The investor complaint resolution framework. SIF investors can escalate from distributor → AMC → SEBI SCORES (scores.gov.in) → SEBI SmartODR. Trustner grievance: grievance@trustner.in.

The dominant SIF category — ~77% of category AUM. Defined equity-debt allocation bands with derivative hedging. Includes Altiva (Edelweiss), Magnum (SBI), iSIF Hybrid (ICICI Pru), Apex (ABSL), Titanium (Tata), Arudha (Bandhan).

A pre-2023 tax mechanism that adjusted purchase price for inflation, reducing taxable LTCG. Withdrawn for debt and most hybrid funds in the 2023 Finance Act. SIF LTCG is on nominal gains, not inflation-adjusted.

The standardised SIF disclosure format mandated by SEBI's 11 April 2025 circular. Every SIF must publish its bi-monthly portfolio in ISID format — making cross-fund comparison straightforward.

A strategy that takes both long (buy) and short (sell) positions. SIFs may take unhedged shorts up to 25% of NAV via exchange-traded derivatives — the structural feature unavailable in conventional MFs.

Tax on gains from securities held longer than the threshold. For SIFs: 12.5% on equity-oriented (after 12 months), 12.5% on hybrid <65% equity (after 24 months), slab rate on debt-oriented.

SEBI's primary regulatory document. The SIF Master Circular dated 27 February 2025 (SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/26) defines the entire SIF framework — eligibility, strategies, exposure limits, disclosure norms.

An AMFI-registered intermediary licensed to distribute mutual funds and (since 2025) SIFs. MFDs offer Regular Plans only, are remunerated through AMC trail commissions, and cannot directly offer fee-based investment advice.

The per-unit value of a SIF, calculated daily. Published by the AMC and on AMFI's website. Closed-ended SIFs may trade on NSE/BSE at a price different from NAV.

The initial subscription window for a new SIF. NFO units are typically issued at ₹10 face value. After NFO close, open-ended SIFs accept ongoing subscriptions at NAV.

The mandatory certification for any fund manager handling an SIF strategy. Issued by the National Institute of Securities Markets (NISM). In addition to this, MFD-side employees must hold NISM Series-V certification to advise on SIFs.

Indian citizens residing outside India for tax purposes. NRI eligibility for SIFs varies by AMC; US/Canada NRIs face restrictions on many AMCs due to FATCA. Investments must come from NRE / NRO / FCNR accounts.

Mandatory for all SIF investors. The ₹10 lakh SIF minimum is calculated per PAN per AMC — meaning all SIF strategies of one AMC aggregate together for the floor.

A fee charged on returns above a hurdle rate. PMS and AIF Cat-III typically charge 10-20%. SIF technically permits performance fees but they are rare in practice — most SIFs charge management fee only.

A SEBI-regulated investment vehicle for HNIs (₹50 lakh minimum). Provides separate demat with the investor's name on individual stocks. Tax disadvantage vs SIF: PMS gains are pass-through at slab rate (~30-39% effective for top brackets).

A scheme variant where the distributor's trail commission is built into the TER. Trustner deals exclusively in Regular Plans of SIFs and mutual funds.

A SEBI-mandated risk disclosure for SIFs, ranging from "Low" to "Very High". Every SIF must disclose its risk band in the SID and on every periodic statement. Most equity LS SIFs sit at Level 5 (Very High); hybrids at Level 3-4.

The back-office that handles SIF unit allotment, transfer, and statements. CAMS and KFin are the two RTAs serving most Indian SIFs. Your CAS (Consolidated Account Statement) comes from your RTA.

A supplementary disclosure document for every SIF, containing detailed information about the fund house, trustees, custodian, and operational processes. Read alongside the SID.

SEBI's online grievance portal at scores.gov.in. Investors can lodge SIF-related complaints here after exhausting distributor-level and AMC-level escalation. Toll-free: 1800-22-7575.

The Income Tax Act provision that exempts SEBI-registered mutual funds (and by extension SIFs) from fund-level taxation. Gains compound untaxed at the fund level — only the investor pays at redemption. This is the structural reason SIF tax is better than AIF Cat-III.

One of the seven SEBI SIF categories. Concentrates ≥80% in up to 4 sectors at any time, with 25% short capability. Quant has filed for the first Sector Rotation SIF (awaiting SEBI clearance).

Securities and Exchange Board of India — the regulator for the Indian capital markets, including SIFs. The SIF framework was created via SEBI amendments effective 16 December 2024 and three subsequent circulars in early 2025.

The primary disclosure document for any SIF. Contains investment objective, strategy, allocation bands, risk factors, fees, and load structure. Always read the SID before subscribing.

Recurring monthly investment in mutual funds. SIFs do not support traditional SIPs — the ₹10 lakh minimum makes SIF a lump-sum product. After the initial deployment, AMCs may permit additional lump-sum top-ups.

SEBI's online dispute resolution platform at smartodr.in. Provides arbitration and conciliation for securities-market disputes — including those arising from SIF investments.

Tax on gains from securities held shorter than the LTCG threshold. For equity-oriented SIFs: 20% (held <12 months). For hybrid <65% equity SIFs: slab rate (held <24 months).

The annual cost of running a SIF, expressed as % of AUM. SIF TER is capped at ~2.25% (asset-slab basis). Most live SIFs have direct-plan TER of 0.4-1.0%; regular plans are higher by the trail commission component.

For resident investors, no TDS applies on SIF redemption — capital gains are paid via advance tax / self-assessment. For NRIs, TDS at applicable rates is deducted at source; DTAA benefits may be claimed.

An ongoing commission paid by the AMC to the distributor as long as the investor stays invested, calculated as a % of AUM. Trustner's only source of revenue from SIF distribution. Disclosed on every transaction confirmation.

A short position taken without an offsetting long. SIFs may take unhedged shorts up to 25% of NAV via exchange-traded derivatives. PMS and AIF Cat-III have no statutory cap — but for ₹10L–₹2 Cr investors, the SIF cap is the right guard rail.

Quant Mutual Fund's proprietary Valuation-Liquidity-Risk-Time systematic framework, applied to its qSIF strategies (Equity LS, Hybrid LS, Ex-Top 100 LS, AAA).