The Securities and Exchange Board of India (SEBI) has recently introduced a new investment option called the Specialised Investment Fund (SIF). This initiative aims to fill the gap between traditional Mutual Funds (MFs) and Portfolio Management Services (PMS), providing investors with more flexible and diverse investment opportunities.
Priya, a 38-year-old entrepreneur, has always been financially independent. She’s been investing in mutual funds for years, but now wants more control over her money and potentially higher returns.
She considered Portfolio Management Services (PMS) but was discouraged by the high entry barrier — the ₹50 lakh minimum investment was too steep. Then, she came across SEBI’s new Specialised Investment Fund (SIF), which allows her to invest ₹10 lakh while exploring more sophisticated investment strategies.
Just like Priya, many women are looking for ways to take charge of their finances and grow their wealth beyond traditional options. Could SIFs be a step in the right direction?
What Is A Specialised Investment Fund (SIF)?
Think of SIFs as a middle-ground investment option designed for people who want more than mutual funds but don’t have crores to invest.
• Mutual Funds – Great for beginners, allowing small investments.
• Portfolio Management Services (PMS) – High-net-worth investors commit ₹50 lakh or more.
• SIFs – A newly introduced category where investors can start with ₹10 lakh and access better investment strategies.
For women looking to expand their portfolios and take a more strategic approach to investing, SIFs offer a balance of flexibility and higher potential returns.
Why SIFs Could Be A Game-Changer For Investors
· Breaking Barriers In Investing - Women often stick to fixed deposits, gold, and mutual funds. SIFs offer an opportunity to step into more advanced investments without the extreme entry barriers of PMS.
· More Control Over Investments - Unlike mutual funds, where fund managers make most decisions, SIFs allow for custom investment strategies. This is great for women looking to have an active role in their financial growth.
· Strict SEBI Regulations for Safety - Only reputed asset management companies with ₹10,000 crore+ in assets can offer SIFs, ensuring credibility and investor protection.
Who Should Consider SIFs?
SIFs are ideal for those who:
· Have at least ₹10 lakh to invest.
· Want more than just mutual fund returns but aren’t ready for PMS.
· Understand that higher potential returns come with higher risks.
· Are entrepreneurs, professionals, or homemakers looking to grow wealth independently.
Who Can Set Up An SIF?
A SEBI-registered mutual fund can establish an SIF through either of these two routes:
Route 1
· The mutual fund must have been in the market for at least 3 years.
· It should have maintained an average asset under management (AUM) of ₹10,000 crore in the last three years.
· No regulatory action should have been taken against the sponsor or asset management company (AMC) in the last three years.
Route 2
· The AMC must appoint a Chief Investment Officer (CIO) with at least 10 years of experience managing ₹5,000 crore.
· A fund manager with at least 3 years of experience managing ₹500 crore should also be in place.
· Just like Route 1, the sponsor or AMC must have a clean regulatory record over the past three years.
This ensures that only trusted, experienced firms can set up SIFs, adding an extra layer of safety for investors.
Investment Rules And Restrictions
· Minimum Investment – Investors must maintain a ₹10 lakh minimum investment (except accredited investors). This applies across all SIF investment strategies on a PAN-wise basis but does not include normal mutual fund schemes.
· Flexible Investment Plans – Systematic investment options such as SIP, SWP, and STP are allowed, provided the ₹10 lakh minimum is maintained.
These restrictions help investors manage risks while ensuring better returns than traditional mutual funds.
Final Thoughts: Is This the Right Investment For You?
SIFs represent a new financial opportunity—a chance to explore better returns, smarter investment strategies, and greater financial independence. However, they also come with risks, so if you’re unsure, consult a financial advisor before making a decision.
Would you consider investing in an SIF? Share your thoughts!