SIFs Explained: The New Investment Trend Beyond Mutual Funds

Specialised Investment Funds (SIFs) are emerging as a powerful new investment category for investors who want more flexibility and sophistication than traditional mutual funds can offer. SIFs blend the tax efficiency of mutual funds with strategic tools often seen in PMS and AIFs, such as long–short strategies, derivative overlays, and concentrated portfolios. With a minimum entry point of around ₹10 lakh, SIFs make advanced portfolio strategies accessible to a wider base of investors. Young and digital-first investors are increasingly adopting SIFs as a “satellite allocation” to complement their core mutual fund holdings. In a market environment shaped by inflation, volatility, and global uncertainty, SIFs offer diversification benefits, better risk-adjusted returns, and tools to protect capital during drawdowns.