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HomeNewsOpinionSIF might be the smartest Rs 10 lakh you ever allocate: Radhika Gupta of Edelweiss MF

SIF might be the smartest Rs 10 lakh you ever allocate: Radhika Gupta of Edelweiss MF

Not a magic wand, but it may just be the missing link for sophisticated investors who want structure without straitjackets and flexibility without fiscal frustration, the author writes

August 18, 2025 / 09:12 IST
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Radhika Gupta, MD & CEO, Edelweiss Mutual Fund. 15/10/2023. Photo by Manoej Paateel

Let’s say you’ve been investing for a while. You’ve graduated from FDs and PPFs into mutual funds, maybe even flirted with PMS or AIFs. But every time your CA files your taxes, you sigh at the efficiency leakage. Or worse, you stare at a Category III AIF’s tax statement and wonder whether it’s a fund or a fine. Enter the SIF: Specialized Investment Fund. It’s not a magic wand, but it may just be the missing link for sophisticated investors who want structure without straitjackets and flexibility without fiscal frustration.

What is a SIF — and what makes it special?

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The Specialized Investment Fund, or SIF, is a SEBI-regulated offering created to give asset managers a more flexible framework than traditional mutual funds, without diving headfirst into the uncharted (and heavily taxed) waters of AIFs.

SIFs are launched under the mutual fund trust structure. That means they're overseen by the same trustees, audited with the same rigour, and benefit from the governance layers we’ve come to expect in mutual funds. But unlike traditional open-ended MFs, SIFs can be structured as interval schemes. This allows investors to subscribe daily but redeem only on specific days (e.g. twice a week). It’s a minor trade-off for investors, but a big win for fund managers who need breathing room to run complex, lower-liquidity strategies. Though some SIFs can have daily redemptions as well, particularly Equity focused ones.