SIFs
The Smart Bridge BetweenMutual Funds & PMS
Smart Investing Perfected Safety, Flexibility and Tax Efficiency in One
Specialized Investment Fund (SIF) is a new investment product framework introduced by SEBI to create a bridge between Mutual Funds and Portfolio Management Services (PMS). It is designed for investors who seek a balance of regulatory safety, tax efficiency, and greater flexibility in managing their wealth.
Lower entry point of ₹10 lakhs.
Taxed similarly to mutual funds for simplicity.
Allows strategic tools like 25% naked short exposure.
Provides access to advanced strategies like long-short.
Operates under SEBI’s protective regulatory framework.
Offers a middle ground between mutual funds and PMS/AIFs.
Disciplined, framework-driven strategies to minimize guesswork.
Customized options for conservative, moderate, and aggressive investors.
Expert fund managers employing research-backed strategies.
Adapts to various investment horizons and strategic approaches.
| SIF | MF | PMS | AIF (CAT III) | |
|---|---|---|---|---|
| Minimum Investment | Rs. 10 Lakh (Across SIF strategies) |
Rs. 500 (Lumpsum) |
Rs. 50 Lakh | Rs. 1 Crore |
| Taxation at Investor Level | Equity – LTCG @ 12.5% (after 12m) Debt – Marginal Tax Rate Other – LTCG @ 12.5% (after 24m) |
Taxed to investor at each transaction level | NA | |
| Taxation at Fund Level | Nil as per Section 10 (23D) | NA | Capital Gains @12.5% + Business Income @ MMR | |
| Expense Ratio | Max @2.25% & 2% | Management Fee & Performance Fee | ||
| Derivatives + Leverage | Naked shorts up to 25% + Hedging No Leverage Allowed |
Only for Hedging No Leverage Allowed |
Allowed gross exposure up to 200% | |