SIF is a new SEBI-regulated investment structure introduced to bridge the gap between Mutual Funds and Portfolio Management Services (PMS).
It allows experienced fund managers to run more flexible and concentrated strategies, but within the mutual fund ecosystem — ensuring better transparency, lower minimums, and stronger investor protection.
SEBI observed that:
SIF combines the best of both worlds
✔ Flexibility of PMS
✔ Safety & transparency of Mutual Funds
| Feature | SIF | PMS | AIF (Cat III) |
|---|---|---|---|
| Minimum Investment | ₹10 lakh | ₹50 lakh | ₹1 crore |
| Structure | Pooled (MF-like) | Individual portfolio | Pooled |
| Regulation | SEBI (MF Regulations) | SEBI (PMS) | SEBI (AIF) |
| Transparency | High (Daily NAV) | Moderate | Low |
| Liquidity | High | Moderate | Low |
| Taxation | MF-style (efficient) | Investor-level | Pass-through / complex |
| Strategy Flexibility | High | Very High | Very High |
| Costs | Lower | High | Very High |
| Investor Protection | Very High | Moderate | Moderate |
Lower Entry Barrier
Better Transparency
Tax Efficiency
Stronger Investor Protection
Cost Efficiency
Professional, High-Conviction Strategies
One-Line Client Explanation
“SIF gives you PMS-like strategies with mutual fund-level safety, transparency, and tax efficiency — at a much lower investment amount.”
