{"id":6973,"date":"2026-08-26T04:51:19","date_gmt":"2026-08-26T04:51:19","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6973"},"modified":"2026-08-26T04:51:19","modified_gmt":"2026-08-26T04:51:19","slug":"sifs-in-mutual-funds","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/sifs-in-mutual-funds\/","title":{"rendered":"SIFs in Mutual Funds Explained: Features, Benefits, Eligibility and How to Invest"},"content":{"rendered":"

Have you ever felt that regular mutual funds are a little too plain, yet a Portfolio Management Service (PMS), which has a \u20b950 lakh minimum investment requirement, feels out of reach? You are not alone. Plenty of investors sit in exactly that gap, wanting sharper strategies without the steep price tag. This is where the Specialised Investment Fund (SIF) steps in.\u00a0<\/span><\/p>\n

Introduced by the Securities and Exchange Board of India (SEBI), a Specialised Investment Fund (SIF) blends the discipline of mutual funds<\/span><\/a> with the strategic freedom usually reserved for wealthier clients. In this guide we will walk through what a SIF is, how it works, who can invest, and how you can get started, all in plain language.<\/span><\/p>\n

What Is a Specialised Investment Fund (SIF)?<\/b><\/h2>\n

A Specialised Investment Fund is a category of investment product designed for investors seeking greater flexibility in investment strategies than traditional mutual funds, with a minimum investment requirement of \u20b910 lakh. SEBI brought SIFs to life through an amendment to the mutual fund regulations effective 16 December 2024, followed by a detailed framework circular dated 27 February 2025, which became effective on 1 April 2025.<\/span><\/p>\n

Depending on the strategy, a SIF can invest across asset classes such as equity, debt, Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs) and permitted derivatives. It combines professional fund management and regulatory oversight with more specialised investment strategies than conventional mutual funds, all within SEBI’s regulated structure.<\/span><\/p>\n

Who Can Launch SIFs in India? Eligibility Explained<\/b><\/h2>\n

Only SEBI-registered Asset Management Companies (AMCs)<\/span><\/a> may launch a Specialised Investment Fund, and only if they clear one of two eligibility routes. Prior approval from SEBI is required before setting up a SIF.<\/span>
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\n\n\n\n\n\n\n
Route<\/th>\nWhat the AMC must meet<\/th>\n<\/tr>\n<\/thead>\n
Route 1: Sound track record<\/td>\nAt least three years of operations and an average Assets Under Management (AUM) of \u20b910,000 crore over the immediately preceding three years. No SEBI action under Sections 11, 11B or 24 of the SEBI Act, 1992, in the last three years.<\/td>\n<\/tr>\n
Route 2: Alternate route<\/td>\nAppoint a Chief Investment Officer (CIO) with at least ten years of fund management experience and an average AUM of \u20b95,000 crore, plus an additional fund manager with a minimum of three years of experience and average AUM of at least \u20b9500 crore. No SEBI action under Sections 11, 11B or 24 in the last three years.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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