Derivatives and exposure limits · a SIF concept, explained from SEBI’s rules.
In one line
Caps on how much of a SIF strategy's NAV may sit in one issuer's debt (20%, 16% or 12% by rating) or in one sector's debt (25%).
A strategy may not invest more than 20% of its NAV in debt and money market securities of a single issuer rated AAA, 16% for AA, or 12% for A and below; these limits may be raised by up to 5% of NAV with the prior approval of the trustees and the AMC board (circular para 5.1.1). It may not invest more than 25% of NAV in debt and money market securities of a particular sector (para 5.1.2). The mutual fund exclusions and the extra room for housing finance companies also apply (FAQ B50).
Sources: SEBI circular on the SIF framework, 27 Feb 2025; SEBI FAQs on SIFs, Parts B and C, 22 Sep 2026
Illustrative example. In a ₹200 crore strategy, one AAA-rated issuer's bonds may reach ₹40 crore (20%), an AA issuer's ₹32 crore (16%) and an A-rated issuer's ₹24 crore (12%), each up to ₹10 crore more with trustee and board approval.
Every SIF strategy type, within each strategy’s own offer document. All 36 live strategies are listed on our tracker; each one’s offer document sets its own limits within SEBI’s.
Explanation only, not a recommendation. Trustner Asset Services Pvt. Ltd. is an AMFI-registered Mutual Fund & SIF Distributor (ARN-286886) and may receive commission from fund houses. Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision.