Specialised Investment Funds (SIFs): The New Middle Ground for India’s Evolving Investors

India’s investment landscape is transforming at a historic pace. What was once a market dominated by fixed deposits and traditional products is now seeing a wave of sophisticated investors seeking smarter allocation, enhanced risk-adjusted returns, and more strategic wealth-building avenues.

Enter Specialised Investment Funds (SIFs)—SEBI’s latest innovation that sits strategically between the accessibility of mutual funds (MFs) and the sophistication of PMS/AIF structures.

In just a few months, SIFs have become the talk of India’s wealth and investment circles. But do they truly fit the bill for investors looking to balance growth, innovation, and risk?

Let’s break it down.

 India’s Investing Boom: The Shift Behind SIFs

Over the last five years:

• Demat accounts surged from 4.1 crore (2020) to 21+ crore (2025)

• MF AUM skyrocketed to ₹79.9 lakh crore

• Retail participation went mainstream

• Investors shifted from guaranteed products → equities → innovative market-linked products

This shift has created a massive demand for:

• More advanced strategies

• Access to hedging tools

• Hybrid, flexible portfolios

• Products that offer MF -like transparency with PMS/AIF-like sophistication

SIFs are designed specifically to fill this gap.

 What Are SIFs? Why Did SEBI Create Them?

Think of SIFs as a bridge between:

SEBI introduced SIFs in 2025 to allow AMC-led innovation without exposing investors to the risks of loosely governed PMS/AIF structures.

To avoid confusion, SEBI mandated separate branding and logos for SIFs.

So far, approved SIF brands include:

• SBI Magnum SIF

• Edelweiss Altiva SIF

• Quant qSIF

• ITI Divinity SIF

More AMCs are lining up fast.

 What Do SIFs Offer?

SIFs allow fund managers to use tools historically restricted to high-net-worth investors:

• Long-short strategies

• Advanced hedging

• Sector rotation

• Derivative-based opportunistic allocation

• Dynamic asset allocation

SEBI permits 7 types of SIFs across:

Equity

1. Equity Long–Short (up to 25% shorting allowed)

2. Equity Ex-Top 100 Long–Short

3. Sector Rotation Long–Short

Debt

1. Debt Long–Short

2. Sectoral Debt Long–Short

Hybrid

1. Active Asset Allocator Long–Short

2. Hybrid Long–Short

These provide the sophistication of PMS/AIFs at one-fifth the entry threshold.

 Flexibility in Structure

SIFs can be:

• Open-ended

• Interval-based (limited redemption windows)

• Offer SIP, SWP, STP—but only after the ₹10 lakh minimum

Example:
SBI Magnum Hybrid Long-Short Fund allows redemptions only on Mondays & Thursdays.

This structure is designed to support complex strategies without redemption pressure.

 Should You Invest in SIFs?

SIFs are suitable for:

✔ Experienced investors
✔ Those comfortable with long-short strategies
✔ Investors with ₹10 lakh+ to deploy
✔ HNIs seeking diversification beyond traditional MFs
✔ Individuals who understand volatility and market cycles

Who should not invest yet?

❌ Retail investors
❌ Investors uncomfortable with derivatives
❌ Anyone needing liquidity anytime
❌ Those who prefer simple, long-only mutual funds

What Experts Say

 “SIFs offer the sophistication of AIFs with the governance of mutual funds.” — Jatinder Pal Singh, CEO, ITI AMC

 “They work best for investors who understand strategies without long track records and can handle amplified risks.” — Vishal Dhawan, Plan Ahead Wealth Advisors

 Final Takeaway

SIFs are SEBI’s bold attempt to democratize sophisticated investing—but with guardrails.

They bring:

• Innovation

• Flexibility

• MF-like transparency

• PMS-like strategy depth

But they also carry:

• Higher risk

• Limited track record

• A meaningful minimum investment requirement

For evolved investors, SIFs could become a powerful portfolio enhancer over the next decade.
For beginners, traditional mutual funds remain the safer doorway.

Explore More Insights

For a deeper understanding of how wealth management, advisory excellence, and capital-market strategies shape India’s financial ecosystem, explore guidance from Ranjit Jha (CEO)—a pioneer in research-driven wealth advisory.

To learn how Rurash Financials empowers investors through:

• AIF access

• Portfolio engineering

• Unlisted equity opportunities

• Personalised wealth strategies

Visit the official website.