Question 1

What is a Specialised Investment Fund (SIF)?

Accepted Answer

A Specialized Investment Fund (SIF) is a new investment product introduced by SEBI to bridge the existing gap between Mutual Funds and Portfolio Management Services (PMS) in terms of portfolio flexibility. By operating under a segmented, risk-based regulatory framework, SIFs allow for more sophisticated investment strategies—such as Long-Short and dynamic asset allocation—while maintaining the investor protections associated with the SEBI (Mutual Funds) Regulations.

Question 2

What is the minimum investment threshold for an SIF?

Accepted Answer

An investor must invest a minimum of INR 10 lakh aggregate across all SIF investment strategies at the PAN level; however, this threshold does not apply to accredited investors.

Question 3

What is the "Risk-band" system used by SIFs?

Accepted Answer

Similar to Mutual Funds, SIF strategies are assigned a risk level on a five-level scale (Level 1 being the lowest risk and Level 5 the highest) to depict potential risk.

Question 4

Are AMCs required to maintain a distinct brand identity for their SIF?

Accepted Answer

Yes. To maintain brand integrity, AMCs must ensure the SIF has a distinct brand name and logo, separate from the regular Mutual Fund business, although the sponsor's brand name may be referenced for an initial five-year period.

Question 5

How often must an SIF disclose its portfolio?

Accepted Answer

SIFs are required to disclose their portfolios, including derivative instruments, on the last day of every alternate month (i.e. May, July, September, November, January, and March).

Question 6

Are there specific qualification requirements for SIF distributors?

Accepted Answer

Yes. Entities engaged in the sale or distribution of SIF products must have passed the NISM Series-XIII: Common Derivatives Certification Examination.

Question 7

What are the three primary categories of investment strategies currently permitted under SIF?

Accepted Answer

The current permitted categories are Equity Oriented Investment Strategies, Debt Oriented Investment Strategies, and Hybrid Investment Strategies.

Question 8

What are the defined sub-categories of investment strategies currently permitted?

Accepted Answer

The Specialized Investment Fund framework currently permits three main categories of investment strategies, each with specific sub-categories:

a. Equity Oriented Investment Strategies include the Equity Long-Short Fund, Equity Ex-Top 100 Long-Short Fund, and the Sector Rotation Long-Short Fund. 
b. Debt Oriented Investment Strategies include the Debt Long-Short Fund and the Sectoral Debt Long-Short Fund. 
c. Hybrid Investment Strategies include the Active Asset Allocator Long-Short Fund and the Hybrid Long-Short Fund.

Question 9

Is there a limit on the number of strategies allowed per category?

Accepted Answer

Yes. To avoid the proliferation of strategies, only one investment strategy is permitted to be launched under each defined category.

Question 10

Can an SIF invest in unhedged derivative instruments?

Accepted Answer

Yes, a SIF may take unhedged short exposure through derivative instruments of up to 25% of its net assets for purposes other than hedging and portfolio rebalancing.

Question 11

Are derivative investments in SIF strategies limited to hedging?

Accepted Answer

No. Strategies may take exposure of up to 25% of net assets in permissible exchange-traded derivatives for purposes other than hedging and portfolio rebalancing.

Question 12

Is offsetting of derivative positions allowed at the portfolio level?

Accepted Answer

Yes. Offsetting is permitted for cash and derivative positions (or between derivative positions) on the same underlying security, provided they have the same expiry date.

Question 13

Why are some strategies classified as "Interval" investment strategies?

Accepted Answer

Strategies with subscription and/or redemption frequencies other than daily are classified as "Interval investment strategies" to manage liquidity effectively.

Question 14

Do all SIF strategies have the same redemption frequency?

Accepted Answer

No. Redemption frequency depends on the strategy type; for instance, Equity Long-Short funds may offer daily redemptions, while Debt or Hybrid strategies may be limited to weekly or twice-weekly intervals.

Question 15

How does an "Equity Long-Short Fund" differ from a regular equity mutual fund?

Accepted Answer

Unlike standard equity funds, an Equity Long-Short Fund must invest at least 80% in equity instruments while also being permitted to take limited short exposure through unhedged derivative instruments up to 25%.

Question 16

What is unique about the "Equity Ex-Top 100 Long-Short Fund"?

Accepted Answer

This strategy requires a minimum 65% investment in equity instruments that are not among the top 100 stocks by market capitalization, combined with a limited short exposure of up to 25% in non-large cap stocks.

Question 17

How does the "Sector Rotation Long-Short Fund" operate?

Accepted Answer

This strategy focuses on equity instruments within a maximum of four sectors (minimum 80% allocation). If the fund takes a short position in a sector, it must hold all stocks held in the portfolio from that specific sector as short positions.

Question 18

Are "Debt Long-Short Funds" allowed to take short positions?

Accepted Answer

Yes. These interval investment strategies invest in debt instruments and are permitted to include limited short exposure to debt instruments through exchange-traded derivatives.

Question 19

What is the sector concentration limit for a "Sectoral Debt Long-Short Fund"?

Accepted Answer

This strategy must invest in debt instruments of at least two sectors, with a maximum investment limit of 75% in any single sector.

Question 20

How is "short exposure" applied at the sector level for debt strategies?

Accepted Answer

Similar to equity sector strategies, if the fund is short on a specific sector, all debt instruments of that sector held in the portfolio must be held as short positions.

Question 21

What makes an "Active Asset Allocator Long-Short Fund" a hybrid strategy?

Accepted Answer

This strategy dynamically invests across multiple asset classes including equity, debt, derivatives, REITs, InvITs, and commodity derivatives.

Question 22

What are the specific allocation requirements for a "Hybrid Long-Short Fund"?

Accepted Answer

This strategy requires a minimum 25% investment in equity and equity-related instruments, and a minimum 25% investment in debt instruments, while allowing limited short exposure through derivatives.

Question 23

Can an SIF strategy invest in REITs and InvITs?

Accepted Answer

Yes, the "Active Asset Allocator Long-Short Fund" specifically allows for dynamic investment across REITs, InvITs, and commodity derivatives.

Question 24

Who should consider investing in a Specialised Investment Fund?

Accepted Answer

SIFs may be suitable for investors who already have core investments in place and are looking for more focused, flexible, and outcome-oriented strategies within a regulated structure. They are typically considered by investors with a medium- to long-term investment horizon.

Question 25

What investment horizon is typically recommended for an SIF?

Accepted Answer

SIFs are generally designed for investors with a medium- to long-term investment horizon, allowing strategies adequate time to play out across market cycles. The recommended holding period may vary based on the underlying investment approach.

Question 26

Can investors add or withdraw money from an SIF at any time?

Accepted Answer

Subscriptions and redemptions in an SIF are governed by the specific terms of each strategy. While SIFs offer structured entry and exit opportunities, the frequency may differ from traditional mutual funds depending on the strategy design.

Question 27

How does an SIF fit within an overall investment portfolio?

Accepted Answer

An SIF can complement core investments by adding focused or differentiated strategies to a portfolio. It is often used as a satellite allocation alongside traditional equity and debt investments to enhance diversification and portfolio construction.

Strategy	Apr '26	May '26	Jun '26	Jul '26	Aug '26	Sep '26
Equity-oriented
	+6.0	-0.6	+2.0	+2.0	+0.8	-4.1
Apex Equity Long-Short Fund	—	—	—	—	—	-2.1^L
Arthaya Equity Long Short Fund	—	—	+0.8	+0.6	-1.2	-3.0
Arudha Equity Long-Short Fund	+3.3	-1.0	+2.0	+2.3	+0.2	-4.0
Diviniti Equity Long Short Fund	+0.6	-4.0	+2.3	+0.2	-0.4	-6.4
DynaSIF Equity Long - Short Fund	+6.5	+1.2	+1.6	+2.0	-0.2	-4.8
isif Equity Long-Short Fund	—	—	+1.7^L	+3.0	+3.9	-3.1
qsif Equity Long Short Fund	+13.5	+2.0	+2.4	+4.1	+1.1	-1.7
Sapphire Equity Long-Short SIF	—	-1.0	+1.0	+0.9	+0.2	-5.6
Summit Equity Long-Short Fund	—	—	—	+2.5^L	+3.4	-4.2
Titanium Equity Long-Short Fund	—	-0.2^L	+1.3	+3.0	+1.3	-3.8
wsif Equity Long-Short Fund	—	-1.0^L	+4.9	+2.4	-0.7	-4.8

	+12.0	+1.2	+3.7	+3.7	+2.6	-2.6
Altiva Equity Ex- Top 100 Long - Short Fund	—	—	+6.0^L	+2.1	+3.5	-4.8
Apex Equity Ex-Top 100 Long-short Fund	—	—	—	—	—	-0.8^L
DynaSIF Equity Ex-Top 100 Long - Short Fund	—	—	+0.7^L	+4.2	+6.2	+0.2
isif Equity Ex-Top 100 Long-Short Fund	+8.8	+1.1	+1.3	+2.9	+0.5	-2.7
Magnum Equity Ex-Top 100Long Short Fund	—	—	—	—	—	-1.5^L
qsif Equity Ex-Top 100 Long-Short Fund	+15.2	+1.3	+4.1	+7.6	+2.2	-1.3
wsif Equity Ex-Top 100 Long-Short Fund	—	-0.6^L	+5.7	+1.9	+0.6	-4.5

	—	—	+1.3	-1.0	+1.6	-0.1
qsif Sector Rotation Long-Short Fund	—	+0.6^L	+1.3	-1.0	+1.6	-0.1

Hybrid
	+3.6	+0.2	+1.7	+1.5	+1.1	+0.6
Altiva Hybrid Long-Short Fund	+3.1	+1.1	+1.3	+1.7	+1.1	-0.8
Apex Hybrid Long-Short Fund	+0.3	+0.4	+1.8	+2.5	+2.0	-0.2
Arudha Hybrid Long-Short Fund	+0.3	+0.2	+1.6	+0.4	+0.2	+0.3
INFINITY HYBRID LONG-SHORT FUND	—	—	—	+1.1^L	+1.5	+0.1
isif Hybrid Long-Short Fund	+7.3	-0.1	+2.9	+3.1	+2.0	-3.4
Magnum Hybrid Long Short Fund	+2.2	+0.6	+1.3	+0.9	+0.9	-2.4
Platinum Hybrid Long-Short Fund	—	—	+0.8^L	+0.9	+0.4	-1.5
Prism Hybrid Long-Short Fund	—	—	—	+0.4^L	+1.4	+0.5
qsif Hybrid Long-Short Fund	+6.8	-1.1	+1.5	+3.1	+1.6	+16.8
RedHex Hybrid Long-Short Fund	—	—	+0.2^L	+0.7	+0.8	+0.5
Titanium Hybrid Long-Short Fund	+5.4	+0.4	+1.8	+0.4	+0.6	-3.0

	+0.9	+1.6	+1.9	+3.7	+1.1	+3.7
DynaSIF Active Asset Allocator Long-Short Fund	+0.9	+0.5	+1.4	+0.9	+1.2	-0.9
isif Active Asset Allocator Long-Short Fund	—	—	+0.8^L	+2.2	+1.2	-1.6
qsif Active Asset Allocator Long-Short Fund	-0.1^L	+2.6	+2.4	+8.1	+0.9	+13.6

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