Partner Helpdesk

1. What is a SIF?

    A Specialized Investment Fund (SIF) is a mutual fund scheme registered under SEBI’s 2025 framework that allows for advanced investment strategies, such as long-short, sector rotation, and structured debt — beyond traditional mutual funds.

2. Who can invest in a SIF?

Anyone with a minimum of ₹10 lakh to invest (PAN level, across all SIF schemes under one AMC) can invest.

Typically, suitable for:

• High Net-worth Individuals (HNIs)
• Experienced investors
• Institutional investors

3. What is the minimum investment amount?

• ₹10 lakh across all SIF schemes under a single AMC (per PAN).
• Applies to SIPs, lump sum, and top-ups.

4. Are SIPs allowed in SIFs?

Yes. But the total investment via SIP must meet ₹10 lakh minimum, otherwise the SIP is rejected or suspended.

5. Can I withdraw my investment anytime?

SIFs may have:

• Daily/weekly/monthly redemption windows, or
• Lock-in or soft lock-in periods, depending on strategy

Always check the Scheme Information Document (SID) for liquidity terms. 

6. Can I switch between SIF schemes or to regular mutual funds?

Switch is allowed if:

• The target scheme also qualifies (e.g., SIF-to-SIF switch keeps minimum balance of ₹10 lakh)
• Partial switches are compliant with AMC rules

Switches below ₹10 lakh in total holdings may be rejected.

7. Will I receive regular statements and NAV updates?

Yes. SIFs must publish:

• NAVs (daily or as defined in SID)
• Account statements periodically
• Risk disclosures, performance, and portfolio updates
• 
  

8. What are the risks involved in SIFs?

SIFs carry higher risk due to:

• Complex strategies (e.g., long-short, derivatives)
• Less liquidity
• Higher volatility

SEBI Risk-o-meter will mark most SIFs as “High” or “Very High” risk.

9. How is taxation handled in SIFs?

Same as mutual funds:

TDS may apply on redemptions if PAN/Aadhaar isn't updated or for NRI investors. 

10. Is there a lock-in period?

Not mandatory by SEBI, but:

• AMCs may impose lock-in or soft lock-in (penalty for early exit)
• Terms vary by scheme — check SID

11. Where can I invest in a SIF?

You can invest through:

• AMC portals
• Registered distributors/advisors
• R&T agents (CAMS/KFin)

12. How do I monitor SIF performance?

You’ll receive:

• NAV and portfolio updates from the AMC
• Periodic fact sheets and investor newsletters
• Performance benchmarks (may be custom, not standard indices)

13. Can I invest jointly or on behalf of a minor?

• Joint Holding: Allowed, but all holders must meet eligibility.
• Minor Investment: Usually not allowed, unless explicitly permitted by the AMC.

14. How do I know which SIF is right for me?

Consider:

• Your risk tolerance
• Investment horizon
• Strategy fit (e.g., long-short, debt arbitrage, etc.)
• Liquidity needs

Speak with a financial advisor or distributor before investing.

Minimum threshold requirement and consequences of non- maintenance: 

The AMC shall ensure that an aggregate investment by an investor across all investment strategies offered by the SIF, at the Permanent Account Number (‘PAN’) level, is not less than INR 10 lakh. Provided that the requirement of minimum investment amount shall not apply to an accredited investor. Provided that, the above provisions shall not be applicable for mandatory investments made by AMC for designated employees under paragraph 6.10 of the Master Circular for Mutual Funds dated June 27, 2024. The AMC shall monitor compliance with the Minimum Investment Threshold on a daily basis and ensure that there are no active breaches. The AMC shall ensure that the investor's total investment value does not fall below the Minimum Investment Threshold due to redemption transactions initiated by the investor.

Passive breaches (occurrence of instances not arising out of omission and commission by AMC), such as those caused by a decline in Net Asset Value (NAV), shall not be treated as a violation of the Minimum Investment Threshold. However, if the total investment value falls below the threshold due to a passive breach, the investor shall only be permitted to redeem the entire remaining investment amount from the SIF.

 Active Breaches shall mean fall in the aggregate value of an investor’s total investment across all investment strategies of SIF, below the Minimum Investment Threshold of INR 10 lakh, on account of any transactions (i.e. redemption, transfer, sale etc.) initiated by the investor. 

In case of any active breach of the Minimum Investment Threshold by an investor including through transactions on stock exchanges or off-market transfers: 

(a) All units of such investor held across investment strategies of the concerned SIF shall be frozen for debit, and 

(b) A notice of 30 calendar days shall be given to such investor to rebalance the investments in order to comply with the Minimum Investment Threshold. 

Pursuant to the said notice issued to the investor: 

1. in case investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with Minimum Investment Threshold.
2.  In case the investor fails to rebalance the investments within the aforesaid 30   calendar day period, the frozen units shall be automatically redeemed by the AMC, at the applicable Net Asset Value of the next immediate business day after the 30th calendar day of the notice period.

Fund houses offering Specialized Investment Funds (SIFs) must freeze units if an investor’s holding falls below the minimum investment threshold of Rs. 10 lakh.

 However, this requirement applies only in cases of active breach, such as redemptions or switch transfers. 

Passive breaches—where the investment value drops below the threshold due to market movements—will not trigger this rule.