What is SIF?

SIF stands for Specialized Investment Fund, a new asset class introduced by India's SEBI (securities and exchange board of India) to offer more flexible and sophisticated investment options for high-net-worth individuals.

​Key characteristics of SIFs:

 

• Bridging a gap: SIFs were created to address a need for a product between traditional Mutual Funds and PMS, offering greater flexibility and advanced investment strategies. 

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• Higher risk, higher potential return: SIFs are designed for investors willing to take on more risk for the potential of higher returns. 

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• Advanced strategies: Unlike standard mutual funds, SIFs can employ sophisticated techniques, including derivatives, hybrid strategies, and long-short positions.

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• Targeted investments: These funds focus on specific sectors or high-risk areas, allowing investors to participate in specialized investment opportunities. 

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• Minimum investment: SIFs have a minimum investment requirement of ₹10 lakh per investor, making them more accessible than PMS but still for high-net-worth individuals. 

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• Regulatory framework: SIFs operate under the SEBI regulatory framework, ensuring investor protection and transparency within the Indian financial system. 

 

Entry load: Nil

Exit load: 1 % if reedemed witih 15 days.

Lock in period: nil

Taxation structure:

• Equity oriented SIFs

• Short Term Capital Gains (STCG) rate of 20% before 12 months

• Long-Term Capital Gains (LTCG) rate of 12.5% after 12 months,

• Debt-Oriented SIFs

• Taxed at slab rates for short-term gains

• Long-term capital gains (LTCG) rate of 12.5% after 24 months

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For insight information about SIFs