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What are Specialized Investment Funds?
Specialized Investment Funds (SIFs) are a new category of investment products introduced by SEBI to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). These funds offer greater flexibility, advanced strategies, and higher risk-return potential for experienced investors.
SIFs are suitable for investors who are comfortable with market volatility and want access to strategies like long-short investing, sector rotation, and dynamic asset allocation.
Who Can Invest in SIF?
SIFs are designed for informed and experienced investors.
Minimum Investment Requirement
The minimum investment is ₹10 lakh per investor (PAN level) across all SIF strategies of the same AMC.
Who Can Distribute SIF?
To distribute SIF products, a distributor must:
- ✔ Hold valid ARN or EUIN
- ✔ Pass NISM Series XIII -- Common Derivatives Certification
- ✔ Register separately for SIF with AMFI
CAMS will handle end-to-end SIF registration and renewal services.
SIF Registration & Renewal Fees
| Category | ARN (₹) | SIF (₹) | ||
|---|---|---|---|---|
| Registration | Renewal | Registration | Renewal | |
| Banks | 4,00,000 | 2,00,000 | 4,00,000 | 2,00,000 |
| RRBs & DCCBs | 1,00,000 | 50,000 | 1,00,000 | 50,000 |
| NBFC | 1,00,000 | 50,000 | 1,00,000 | 50,000 |
| Public Ltd. Company | 4,00,000 | 2,00,000 | 4,00,000 | 2,00,000 |
| Private Ltd. Company | 40,000 | 20,000 | 40,000 | 20,000 |
| One Person Company | 40,000 | 20,000 | 40,000 | 20,000 |
| LLP | 40,000 | 20,000 | 40,000 | 20,000 |
| Partnership Firm | 20,000 | 10,000 | 20,000 | 10,000 |
| Urban Co-op Banks, Societies, Trusts, HUFs | 20,000 | 10,000 | 20,000 | 10,000 |
| Post Office | 15,000 | 7,500 | 15,000 | 7,500 |
| Micro Finance Institution | 15,000 | 7,500 | 15,000 | 7,500 |
| Proprietorship Firm | 3,000 | 1,500 | 3,000 | 1,500 |
| Individuals | 3,000 | 1,500 | 3,000 | 1,500 |
| Employees of MFDs (EUIN holders) | 1,500 | 750 | 1,500 | 750 |
SIF Exam (NISM Series XIII)
25% of that question for WRONG ANSWERS
Rs 3,000/-
3 Years from the date of the examination
Specialized Investment Funds vs Traditional Mutual Funds
While both investment products are regulated by SEBI, Specialized Investment Funds (SIFs) and traditional mutual funds differ significantly in terms of investor eligibility, investment thresholds, liquidity, and strategy flexibility.
| Feature | Specialized Investment Funds (SIFs) | Traditional Mutual Funds |
|---|---|---|
| Investor Eligibility | Targeted at accredited investors, high net worth individuals (HNIs), and institutional investors | Open to the general public, including retail investors |
| Minimum Investment | Starts from ₹10 lakh, required at PAN level across SIF strategies | Can begin with as low as ₹100, making it highly accessible |
| Regulatory Framework | Regulated under SEBI Mutual Fund Regulations (not AIF/PMS) with special provisions for SIFs | Regulated under the SEBI Mutual Fund Regulations |
| Liquidity | Lower liquidity, with redemption options ranging from daily to quarterly or longer; may include lock in or notice periods | High liquidity through open ended schemes with daily redemptions |
| Asset Class Flexibility | Can invest in niche and alternative asset classes, including derivatives, REITs, and commodities | Primarily invest in stocks & bonds |
| Risk Profile | High, due to use of leverage, short selling, and concentrated strategies | Moderate to high, depending on fund type (equity, debt, etc.) |
| Return Potential | Potential for higher returns through complex strategies, but with increased volatility and risk exposure | Potential for higher returns through complex strategies, but with increased volatility and risk exposure |