Investor Guide
Understanding SIFs — what they are, who they suit, and how to navigate them.
What are Specialised Investment Funds?
Specialised Investment Funds (SIFs) are a new SEBI-regulated investment vehicle launched in 2025, positioned between traditional Mutual Funds and Portfolio Management Services (PMS) / Alternative Investment Funds (AIFs). They offer sophisticated strategies — including short-selling through derivatives — at a relatively accessible minimum ticket size of ₹10 lakh.
Unlike regular mutual funds, SIFs are permitted to take unhedged short exposures up to 25% of the portfolio through derivative instruments — enabling genuine long-short strategies that can generate alpha in both rising and falling markets. This is the defining structural advantage of SIFs over conventional MF products.
Regulated under SEBI's SIF framework, these vehicles offer institutional-grade strategies with the convenience of mutual fund-style administration — daily NAV, systematic plans (SIP/STP/SWP), and AMFI registration — making them far more accessible than Category III AIFs while offering meaningfully more flexibility than regular mutual funds.
Eligibility & Entry Criteria
Aggregated at PAN level across all strategies of an SIF umbrella. Not per strategy — total across all schemes of the same SIF brand.
Investors meeting SEBI's Accredited Investor criteria (as per AIF Regulations) may qualify at ₹1 lakh minimum in select SIFs — Edelweiss Altiva, ICICI iSIF, quant qsif.
Systematic plans available with ₹1,000–₹10,000 per transaction minimums, subject to PAN-level threshold already being met. Minimum 6 installments.
Designated employees of the respective AMC have no minimum investment or redemption limits as per SEBI guidelines (Para 6.10).
Important: STP or SWP transfers from a SIF to a regular Mutual Fund scheme are generally not permitted. Systematic plans work only within the same SIF umbrella (e.g., from one qsif strategy to another qsif strategy). Always verify with the respective AMC before initiating systematic transfers.
Matching Strategy to Risk Profile
Conservative investors comfortable with fixed income-like volatility. Capital preservation with moderate income generation.
- ·Magnum Hybrid Long Short Fund (SBI MF) — covered calls + arbitrage + debt
- ·Arudha Hybrid Long-Short Fund (Bandhan AMC) — balanced equity/debt with NIL exit load
Investors seeking better risk-adjusted returns than conservative hybrid MFs, with some equity upside.
- ·Altiva Hybrid Long-Short Fund (Edelweiss)
- ·Apex Hybrid Long-Short Fund (ABSL)
- ·DynaSIF Active Asset Allocator (360 ONE) — includes commodity derivatives
Aggressive investors comfortable with equity-level volatility, who understand derivatives and can withstand potential capital losses.
- ·All 9 Equity Long-Short strategies
- ·All 4 Equity Ex-Top 100 strategies
- ·qsif Sector Rotation Long-Short Fund — concentrated sector bets
- ·qsif and Titanium Hybrid Long-Short (despite being hybrid, marked Very High)
Liquidity Considerations
Liquidity varies significantly by strategy structure. Understanding redemption windows is critical before investing.
Daily Redemption (Most Liquid)
All 9 Equity Long-Short and 4 Equity Ex-Top 100 strategies. Redemption processed every business day. Best for investors who may need periodic liquidity.
2× Weekly Redemption
Most Hybrid Long-Short strategies redeem on Monday & Wednesday or Monday & Thursday. Includes Altiva, Apex, Arudha, iSIF Hybrid.
Weekly Redemption
DynaSIF Active Asset Allocator — every Monday only.
Monthly Redemption (Least Liquid)
Titanium Hybrid Long-Short Fund — redemption only on the first business day of each month. Plan accordingly.
Exit load windows range from 15 days (quant qsif strategies) to 180 days (Edelweiss Altiva Hybrid). The Wealth Company WSIF strategies have NIL exit load on both entry and exit. Always check the specific scheme's exit load before investing to avoid unexpected costs.
SIF vs. Other Investment Vehicles
| Feature | Mutual Fund | SIF | PMS | AIF Cat III |
|---|---|---|---|---|
| Min. Investment | ₹500 | ₹10 Lakh | ₹50 Lakh | ₹1 Crore |
| Short Selling | ❌ No | ✅ Up to 25% | ✅ Yes | ✅ Yes |
| Derivative Strategies | Limited | ✅ Full | ✅ Full | ✅ Full |
| SEBI Regulation | ✅ SEBI MF Regs | ✅ SEBI SIF Regs | ✅ SEBI PMS Regs | ✅ SEBI AIF Regs |
| Daily NAV | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
| SIP / STP / SWP | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
| AMFI Registration | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
| Direct Stock Reporting | No | No | ✅ Yes | ✅ Yes |
| Commodity Derivatives | ❌ No | ✅ Select SIFs | ✅ Yes | ✅ Yes |
Key Risks to Understand
Derivative / Short-Selling Risk
Losses on short positions can exceed the initially invested notional in certain derivative scenarios. While limited to 25%, unhedged short exposure adds a layer of complexity and risk not present in conventional mutual funds.
Liquidity Risk (Interval Funds)
Hybrid and Active Allocator SIFs are Interval Funds — redemption only on designated days. If you need funds urgently, you may have to wait for the next designated redemption window.
Concentration Risk
The qsif Sector Rotation Fund concentrates in up to 4 sectors. Significant adverse moves in those sectors can cause outsized losses. Not for diversification-seeking investors.
Mid/Small Cap Liquidity Risk
Equity Ex-Top 100 strategies invest heavily in mid and small cap stocks, which can face significant liquidity challenges during market downturns, potentially affecting redemption NAV.
Commodity Price Risk
Active Asset Allocator strategies with ETCD exposure are subject to commodity price volatility, which can move independently of equity and debt markets.
No Guaranteed Returns
All SIFs are market-linked products. There is no assurance or guarantee of returns. Past performance (once available) will not be indicative of future results.
AMC Family Overview
quant Money Managers (qsif)
6 strategiesQuantitative, model-driven approach. Most diverse SIF family — covers all 5 categories. Strategies: Equity L-S, Hybrid L-S, Ex-Top 100, Active Allocator, Sector Rotation.
ICICI Prudential AMC (iSIF)
2 strategiesInstitutional pedigree. CIO Sankaran Naren directly involved. Strong track record in equity and hybrid fund management. Competitive exit load structure.
Edelweiss AMC (Altiva)
2 strategiesDeep derivatives expertise. Team includes ex-D.E. Shaw talent (Bharat Lahoti). One of the earliest SIF launchers with both Hybrid and Ex-Top 100 strategies.
Tata AMC (Titanium)
2 strategiesEstablished fund house with strong retail distribution. Three-fund-manager team. Monthly redemption on the Hybrid fund is unique.
360 ONE AMC (DynaSIF)
2 strategiesAlternative investment specialists. Unique proposition: commodity derivative (ETCD) exposure in the Active Allocator strategy. 360 ONE brings alternatives AUM expertise.
Bandhan AMC (Arudha)
2 strategiesNIL exit load on Hybrid strategy is notable. Conservative risk profile (Risk Band 1 currently). Deep fixed income team.
SBI Funds Management (Magnum)
1 strategyLargest AMC by AUM in India. CIO-level involvement (Gaurav Mehta, ex-IIT Bombay + IIM Lucknow). Lowest risk band (1) with covered call + arbitrage focus.
Aditya Birla Sun Life AMC (Apex)
1 strategyBalanced hybrid approach. 0.50% exit load for 90 days — competitive. ABSL brings deep fixed income and equity capabilities.
Franklin Templeton India (Sapphire)
1 strategyGlobal asset manager with quantitative overlay. Young fund manager (Arihant Jain, CFA) with BITS Pilani + ex-Morgan Stanley, MSCI background.
ITI AMC (Diviniti)
1 strategyYounger AMC. Co-manager Rajesh Bhatia (ex-CIO ITI AMC) provides experience. Unique exit load structure (10% free within 6 months).
The Wealth Company AMC (WSIF)
2 strategiesNIL exit load on both strategies — unique in the SIF landscape. Single fund manager (Chinmay Sathe, 21+ years). Good for cost-conscious investors.
Union AMC (Arthaya)
1 strategyMost recently launched (May 2026). Benchmarked to Nifty 200 TRI (broader than Nifty 500 used by most peers).
Important Disclaimer
This document is compiled from publicly available AMFI SIF filings and scheme information documents for educational and informational purposes only. It does not constitute investment advice or an offer to buy or sell securities. Investment in SIFs is subject to market risks. Investors are advised to read all scheme-related documents carefully before investing. Past performance does not indicate future results. SIFs are suitable only for investors with high risk appetite and the ability to commit a minimum of ₹10,00,000. Information accurate as of April 2026 — please verify current scheme details with the respective AMC or AMFI portal before investing.
Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.