SIFs were introduced by SEBI in late 2024 to create a new category between mutual funds and PMS/AIF products. The regulatory framework was formally released in February 2025 and became effective from April 2025, enabling AMCs to launch India’s first SIF offerings for investors seeking advanced investment strategies.
Specialized Investment Funds (SIFs) are built for HNIs and informed investors who can take higher-risk investment strategies and can invest a minimum corpus of ₹10 lakh. SIFs are designed to bridge the gap between traditional mutual funds and more exclusive investment products like PMS and AIFs. While mutual funds generally follow simpler investment structures, SIFs give fund managers greater flexibility to use a wider range of market strategies within SEBI’s regulatory framework.
Depending on the investment strategy, SIFs may allocate money across:
- Equities
- Debt instruments
- REITs and InvITs
- Futures & Options (F&O) and other derivative strategies
This flexibility allows fund managers to actively respond to changing market conditions, manage risk differently, and explore opportunities that may not be available in standard mutual fund structures. Because of their strategy-driven nature, SIFs can carry higher risk and volatility compared to conventional equity funds.
Under SEBI’s SIF framework, a strategy cannot invest more than 20% of its NAV in debt or money market securities issued by a single AAA-rated issuer, 16% for AA-rated issuers, and 12% for issuers rated A and below. These limits may be increased by an additional 5% with prior approval from the mutual fund trustees and the AMC board. At the group level, investments in a single corporate group are capped at 25% of NAV, and the same 25% limit also applies at the sector level.
Government securities, Treasury Bills, and Triparty Repos backed by government securities are exempt from these issuer-level limits, allowing SIF strategies greater flexibility to invest in sovereign-backed instruments without breaching concentration caps.
SIFs are broadly categorized into two structures:
Interval SIFs - These schemes are mandatorily listed on stock exchanges, allowing transactions during predefined intervals.
Open-ended SIFs - These schemes do not require exchange listing, as investors can directly purchase or redeem units through the fund house on an ongoing basis.
Conditions on SIF Investments & Redemption Conditions
When an investment value in an SIF falls below ₹10 lakh for a non-accredited investor due to partial redemptions, the remaining units are frozen in accordance with SEBI guidelines. The investor is then given 30 days to restore the investment value to at least ₹10 lakh by making an additional investment.
If the investor successfully brings the investment value back to ₹10 lakh or more within the stipulated period, the units are unfrozen. However, if the investor fails to do so, the AMC will redeem the remaining units and transfer the redemption proceeds to the investor’s bank account.
Investors can invest in SIFs directly through the Coin app/web. On Coin, we are are currently offering SIF investments in open - ended Growth Schemes. Additionally, investors can set up both Zerodha SIPs and AMC SIPs in the SIF schemes.
For AMC SIPs in SIFs, the minimum SIP amount permitted is ₹10 lakh and above. However, for Coin SIPs (lumpsum investments), investors must first complete the initial investment and receive unit allotment in the SIF scheme. Once the initial investment requirement is fulfilled, additional investments through Coin SIP can be made for lower amounts, subject to the minimum additional purchase limits allowed by the respective AMC.
Note:
- AMC SIPs below ₹10 lakh are not permitted.
- Coin SIP investments below ₹10 lakh are allowed only after the initial investment has been successfully completed and allotted.
- Minimum additional investment limits may vary across AMCs based on their scheme guidelines.
Below are the SIF schemes currently available on Coin for purchase and redemption. Further, upcoming open - ended SIF NFOs will also be made available on Coin during the NFO period.
- QSIF Equity Ex-Top 100 Long-Short Fund - Direct Plan - Growth
- QSIF Equity Long-Short Fund - Direct Plan - Growth
- Diviniti Equity Long Short Fund - Direct Plan - Growth
- Arudha Equity Long-Short Fund - Direct Plan - Growth
- iSIF Equity Ex-Top 100 Long-Short Fund - Direct Plan - Growth
- DynaSIF Equity Long - Short Fund - Direct Plan - Growth
- Sapphire Equity Long-Short SIF - Direct Plan - Growth
- WSIF Equity Ex-Top 100 Long-Short Fund - Direct Plan - Growth
- WSIF Equity Long-Short Fund - Direct Plan - Growth
We will be adding a new category on the Coin dashboard to make it easier to discover and invest in SIF schemes.
If you have any feedback, please share it in comments.