SEBI's new asset class bridging Mutual Funds and PMS.
Net SIF Corpus
₹36.27 L
Manager fee drag over 10 years: ₹4.19 L
Invested
₹10 L
Gross Corpus
₹40.46 L
Net Corpus
₹36.27 L
Specialized Investment Funds (SIF) are a 2024-introduced asset class sitting between Mutual Funds and PMS. Minimum investment is ₹10 lakh, structurally more flexible than MFs (long-short, higher concentration) but cheaper and more liquid than PMS.
Net CAGR = (1 + gross) × (1 − mgmt) − 1, approximated linearly here for clarity. Always benchmark against a low-cost index ETF before paying for active management.
SIF is a new SEBI-approved asset class introduced in 2024, bridging mutual funds and PMS. Minimum investment is ₹10 lakh. SIFs can use derivatives more aggressively, run long-short strategies and offer thematic exposure not available in regular MFs.
PMS requires ₹50 lakh minimum and holds securities in the investor's own demat. SIF requires only ₹10 lakh and pools investments in a fund structure like a mutual fund. SIF taxation follows the underlying fund category (equity/debt).
SIFs are capped at slightly higher TER than mutual funds — typically 1.5-2.25% all-in, plus possible performance fees (subject to a 10% hurdle). Still materially cheaper than PMS, which often runs 2.5% fixed + 20% performance.
HNIs and sophisticated investors comfortable with concentrated bets, derivative strategies and locked-in capital. Not a substitute for a core equity mutual fund — treat SIF as a satellite allocation, capped at 10-15% of the equity portfolio.