The ₹10 Lakh Minimum Investment Threshold
Every investor entering a SIF must meet SEBI's Minimum Investment Threshold of ₹10 lakh, calculated cumulatively at the PAN level across all strategies offered by a particular SIF — not per individual scheme. So ₹4 lakh in one strategy plus ₹6 lakh in another under the same SIF satisfies the threshold collectively. This amount applies exclusively to SIF investments and excludes any money separately held in regular mutual fund schemes of the same AMC.
Systematic Investment Plans and Passive Breaches
AMCs can offer SIP-style systematic investment facilities into SIF strategies.
The cumulative commitment through such a plan must still add up to ₹10 lakh over time.
If an investor's holding value dips below ₹10 lakh purely due to market movement (a "passive breach"), they are not forced to top up immediately — but are typically only allowed to redeem the entire remaining investment, not make partial withdrawals, until the position is regularised.
The Accredited Investor Exemption
Investor Type | Minimum Investment Requirement |
|---|---|
Regular investor | ₹10 lakh (PAN level, across all strategies) |
Accredited investor | Exempt |
AMC designated employees (mandatory MF investments) | Exempt from SIF threshold |
Accredited investors — those who meet SEBI's specific net worth, income, or asset criteria and have been formally certified by an accreditation agency — are exempt from the ₹10 lakh requirement, recognising their higher bar of financial sophistication and risk-bearing capacity.
What This Means for Prospective Investors
Before considering a SIF, honestly assess whether you can comfortably commit ₹10 lakh to strategies that may carry higher volatility, use derivatives, and offer less liquidity than a typical mutual fund. This is not pocket-change investing — it's meant for investors who can absorb potential drawdowns without needing to redeem at an inopportune time. Next, we look at the actual strategy types available under the SIF umbrella.