Specialized Investment Fund

Specialized Investment Fund (SIF) is a new asset class designed for high-risk investors seeking advanced and flexible investment options. SIF was first proposed by SEBI in July 2024 & formalised on December 16, 2024.

Objective

The initiative aims to bridge the gap between mutual funds and portfolio management services while ensuring robust risk management and investor protection.

Key highlights

• Minimum investment threshold limit is set to Rs. 10 lakh.
• SIFs can own not more than 15% of any company’s paid up capital carrying voting rights.
• Up to 20% allocation of its Net Asset Value to debt instruments issued by a single issuer.
• SIFs can own up to 20% of units issued by a single issuer of REIT and InvIT.
• SIFs may offered across open-ended, close-ended and interval investment strategies.

Who can benefit?

• SIFs are tailored for experienced investors with significant capital and a higher risk appetite.
• The investors looking for more sophisticated strategies and broader exposure limits.
• SIFs offer flexibility to create innovative, customized products, enabling strategies that traditional mutual funds cannot accommodate.

Source: https://www.sebi.gov.in/legal/regulations/dec-2024/securities-and-exchange-board-of-india-mutual-funds-third-amendment-regulations-2024_89978.html