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SIF (specialised investment funds) & alternatives

Policy & Regulation · Financial & market regulation

What it is

Specialised Investment Funds are a SEBI category between mutual funds and PMS, with a Rs 10 lakh minimum per investor per AMC, permitting long-short strategies and up to 25% unhedged derivative positions. The ecosystem crossed roughly Rs 12,500 cr in AUM by April 2026

AMCs and wealth managers have launched rapidly across long-short, hybrid and allocator categories

Impact on industries

  • Carries far higher fees than mutual funds, so it lifts blended yield in a business under structural TER compression
  • Lets AMCs serve sophisticated investors who had migrated to PMS and AIF, recapturing assets at a lower ticket size than those products require
  • Rapid launch activity and licence applications from established wealth managers signal the category is treated as strategic rather than experimental
  • Most funds have under a year of history, so the category sells on strategy not results - and derivative exposure invites future regulatory attention

Industries affected