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Guide · from SEBI regulations

SIF vs mutual fund vs PMS vs AIF

All four are regulated by SEBI, but they differ in minimum investment, structure and what the manager may do. A SIF sits between a mutual fund and a PMS: it is a pooled fund under the mutual fund regulations, with a ₹10 lakh minimum and room for limited short exposure.

Regulated under

SIF:
SEBI (Mutual Funds) Regulations, 2026 — Chapter IX: Specialized Investment Fund
Mutual fund:
SEBI (Mutual Funds) Regulations, 2026
PMS:
SEBI (Portfolio Managers) Regulations, 2020 (replaced by the 2026 Regulations from 1 Apr 2027)
AIF:
SEBI (Alternative Investment Funds) Regulations, 2012

Minimum investment

SIF:
₹10 lakh per investor (PAN), across all strategies of a SIF
Mutual fund:
No ₹10 lakh-type floor; set by each scheme
PMS:
₹50 lakh per client
AIF:
₹1 crore per investor (₹25 lakh for the AIF's or manager's employees/directors)

Accredited investors

SIF:
Exempt from the minimum
Mutual fund:
—
PMS:
Exempt from the minimum
AIF:
No minimum

Structure

SIF:
Pooled — you hold units of an investment strategy
Mutual fund:
Pooled — you hold units of a scheme
PMS:
Individual portfolio — securities held in your name, with a custodian appointed by the portfolio manager
AIF:
Pooled — a privately pooled investment vehicle

Short exposure / leverage

SIF:
Up to 25% unhedged short exposure through derivatives (strategy limits apply)
Mutual fund:
As per SEBI's mutual fund rules — see the scheme documents
PMS:
As per SEBI's PMS rules — see the disclosure document
AIF:
Category III: leverage up to 2× NAV, with investor consent

Offer document

SIF:
Investment Strategy Information Document (ISID)
Mutual fund:
Scheme Information Document (SID)
PMS:
Disclosure document
AIF:
Private placement memorandum

Tax treatment differs between these products and is not covered here — please consult a tax adviser.

Frequently asked questions

What is the difference between a SIF and a PMS?

A SIF is a pooled fund under SEBI's mutual fund regulations with a ₹10 lakh minimum per PAN, where you hold units of an investment strategy. A PMS (SEBI Portfolio Managers Regulations, 2020) is an individually managed portfolio with a ₹50 lakh minimum, where securities are held in your name and a custodian is appointed.

What is the difference between a SIF and an AIF?

A SIF is regulated under SEBI's mutual fund regulations with a ₹10 lakh minimum and up to 25% unhedged short exposure through derivatives. An AIF is a privately pooled investment vehicle under the SEBI AIF Regulations, 2012, with a ₹1 crore minimum; Category III AIFs may use leverage of up to 2× NAV with investor consent.

Is a SIF a mutual fund?

SIFs are offered under the SEBI (Mutual Funds) Regulations, 2026, through a separate SIF framework (Chapter IX) with its own brand, a ₹10 lakh minimum per investor and wider investment strategies, including limited short exposure through derivatives.

Which is better — SIF, PMS or AIF?

None is better in general. They differ in minimum investment, structure, how the portfolio is held and what strategies are allowed. Which fits depends on your goals, horizon, risk appetite and investment size. For personalised advice, consult a SEBI-registered investment adviser.

Want to understand SIFs better?

How to invest in a SIF SIF 101

Sources

Summarised from SEBI regulations, master circulars and investor material as published (checked October 2026); each product's offer document governs. This page is for information only and is not investment, tax or legal advice. Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision. Mutual fund investments are subject to market risks, read all scheme related documents carefully. SIFcase is operated by Aureva Capital Private Limited, an AMFI-registered mutual fund distributor (ARN-346247), is not a SEBI-registered investment adviser, and may earn commission on investments made through it.