What is a Specialized Investment Fund (SIF)?

A Specialized Investment Fund (SIF) is a regulated investment structure that pools capital from investors to invest in diversified asset classes. It offers flexibility in investment strategies and caters primarily to institutional and high-net-worth investors.

Who can invest in a Specialized Investment Fund?

Specialized Investment Funds are open to well-informed or professional investors who have the financial capacity and understanding to evaluate and bear the risks of such investments.

What are the key benefits of investing in an SIF?

SIFs provide investors with professional fund management, portfolio diversification, and access to alternative asset classes that can potentially enhance returns while balancing risk.

How are Specialized Investment Funds regulated?

SIFs are governed by financial regulatory authorities to ensure transparency, risk control, and investor protection, with periodic reporting and compliance requirements.

What types of assets can a SIF invest in?

SIFs can invest in a wide range of assets, including equities, bonds, real estate, private equity, hedge funds, and other alternative investments, depending on their mandate.

Home Blog InvestingSpecialized Investment Fund (SIF)

Specialized Investment Fund (SIF)

Shriya

28 Feb 2025

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Investing

1 min read

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Securities and Exchange Board of India (Sebi) introduced a new asset class between portfolio management services (PMS) and mutual funds called 'Specialized Investment Fund' (SIF)- An asset class for investors with higher risk-taking capabilities.

Key points:

Minimum Investment- Rs.10 lacs or more minimum investment amount will not apply to an accredited investor.
Investment strategy- Could include Equity, Debt, REITs or Derivatives.
The fees and expenses- in accordance with Regulation 52 of the mutual fund regulations.
Limitations on the SIF, such as a maximum of 10% investment in any one listed company at the fund level and 20% for any issuer of debt
security. Government securities (G-Secs) and treasury bills (T-bills) are exempt from the restrictions.
Fund managers managing the SIF will need to be certified by the National Institute of Securities Market (NISM).
The SIF will also be structured like a mutual fund, offering similar investment and redemption procedures and similar tax treatment for both the end investor and the fund company managing the assets.

Shriya

28 Feb 2025

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