What Is New Asset Class Specialized Investment Fund? A Guide

By Sheetal Kumari | March 3, 2025

MC Desk | March 6, 2025

What Is New Asset Class Specialized Investment Fund? A 10-Point Guide

Markets regulator Sebi has introduced Specialized Investment Funds (SIFs), with a regulatory framework set to take effect from April 1.

New Sebi framework for SIFs

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Investors must put in at least Rs 10 lakh across all SIF strategies. This requirement does not apply to accredited investors.

Minimum investment threshold

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SIFs aim to offer portfolio flexibility, placing them between mutual funds and Portfolio Management Services (PMS).

Bridging gap between MF and PMS

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Investors can use SIP, SWP, and STP, but total investments must always remain above Rs 10 lakh.

Investment rules on SIP, SWP, and STP

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A maximum of 20% (AAA-rated), 16% (AA-rated), or 12% (A-rated and below) can be invested in a single company’s debt securities. No more than 25% of NAV can be invested in a single sector.

Restrictions on sector and company exposure

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Mutual funds must meet one of two eligibility routes, including three years of operation with Rs 10,000 crore AUM or hiring fund managers with proven experience.

Eligibility for mutual funds to launch SIFs

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SIFs can take up to 25% exposure in derivatives for purposes beyond hedging, with risk levels classified into five bands, reviewed monthly.

Derivatives exposure and risk bands

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Moneycontrol advises users to check with certified experts before taking any investment decisions.

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