How to Compare SIF Funds
A structured research framework for comparing SIF schemes across strategy type, fees (TER), risk band, holdings concentration, liquidity terms, benchmark relevance, and mandate clarity.
What you'll learn
Key Takeaway
To compare SIF funds, evaluate them across 9 key dimensions: SEBI category, TER (expense ratio), AUM, risk band (1-5), holdings concentration, top holdings, redemption terms, benchmark, and mandate clarity. Always compare within the same SEBI category, and prioritize mandate clarity and TER since SIF track records are still short.
Why a Structured Framework Matters
SIFs are a new category with heterogeneous strategies, variable risk profiles, and different liquidity terms. Comparing them requires a structured approach across multiple dimensions. No single metric (whether AUM, returns, or TER) is sufficient. The framework below covers the key dimensions that distinguish one SIF from another.
Comparison Dimensions
1. Strategy and Category
Start by confirming both funds belong to the same SEBI category. Comparing an equity long-short SIF with a debt long-short SIF is not meaningful. They have different risk profiles and equity allocations. Within the same category, understand each fund's stated strategy: concentrated vs. diversified, sector-specific vs. broad market, high-conviction vs. systematic.
2. Total Expense Ratio (TER)
TER is a direct drag on returns. SIFs follow SEBI's mutual fund TER caps, but actual TER varies by fund and plan (direct vs. regular). Compare TER across funds in the same category. A 0.5% TER difference compounds meaningfully over time.
3. AUM (Assets Under Management)
AUM indicates the scale of the fund. Very low AUM may raise questions about viability and liquidity. Very high AUM in a concentrated strategy may constrain the manager's ability to execute. There is no universally correct AUM level. It depends on strategy type and market segment.
4. Risk Band (1-5)
SEBI mandates a monthly 1-5 risk band for all SIFs. Compare risk bands across funds in the same category to understand relative risk positioning. A fund with a consistently higher risk band is taking more portfolio risk than its peers. Track how the risk band changes over time. Stability or volatility in the band itself is informative.
5. Holdings Concentration
Review the top 10 holdings as a percentage of the portfolio. A fund with 60% in its top 10 holdings is structurally different from one with 30%. Higher concentration implies higher conviction and higher stock-specific risk. Neither is inherently preferable. It depends on the strategy mandate and the investor's risk tolerance.
6. Top Holdings
Examine the actual holdings to understand the portfolio's character. Look at sector distribution, market cap tilt, and overlap with your existing portfolio. Two funds in the same category may have very different portfolio compositions.
7. Redemption Terms and Liquidity
SIF redemption frequency varies by scheme. Some offer daily redemption, others weekly or monthly. Check for exit loads, lock-in periods, and settlement timelines. Understand the liquidity terms before investing, particularly for strategies that may require longer holding periods.
8. Benchmark
Each SIF declares a benchmark in its Scheme Information Document. Evaluate whether the benchmark is relevant to the fund's actual strategy. A long-short fund benchmarked against a total return index has a different performance context than one benchmarked against a risk-free rate.
9. Mandate Clarity
Read the Scheme Information Document (SID) for each fund. A well-defined mandate specifies the investment universe, derivatives usage policy, short position limits, rebalancing approach, and risk management framework. Vague or overly broad mandates provide less predictability about how the fund will behave in different market conditions.
Using SIFscan's Compare Tool
SIFscan's compare tool allows you to place two or more SIF funds side-by-side across key dimensions including AUM, TER, risk band, holdings, and strategy classification. Use it to quickly identify structural differences between funds in the same category.
Open Compare ToolWhat Not to Compare
- Past performance as a predictor: Short track records (many SIFs launched in 2025-2026) do not provide statistically meaningful performance data. Avoid drawing conclusions from a few months of NAV history.
- Cross-category comparisons: Comparing an equity long-short SIF with a debt long-short SIF, or a hybrid SIF with a sector rotation SIF, is comparing fundamentally different risk-return profiles. Compare within the same category.
- NAV levels: A SIF with NAV of ₹15 is not "cheaper" than one with NAV of ₹25. NAV level is a function of launch date and subsequent returns, not of value.
- AUM alone as quality signal: Higher AUM does not inherently indicate a fund with higher quality. It reflects distribution, timing, and AMC brand, not necessarily strategy merit.
Frequently Asked Questions
How do I compare SIF funds in India?
Compare SIFs across these dimensions: (1) Category and mandate: are they the same SEBI category? (2) TER: lower fees compound significantly. (3) AUM and fund age: more established funds have more data. (4) Risk band (1-5): higher is riskier. (5) Benchmark: are they measured against the same index? (6) Manager experience: track record in long-short strategies. (7) Portfolio disclosure history: how many disclosures are available?
What is the most important factor when comparing SIFs?
For most investors, mandate clarity and TER are the most important. Mandate clarity tells you exactly what the fund does (gross/net exposure limits, instrument types, sector constraints). TER compounds over time. A 0.5% TER difference becomes significant over 5+ years. Since SIFs are new, NAV track records are limited, so qualitative factors matter more.
Can I compare SIFs across different SEBI categories?
You can compare across categories (e.g., equity long-short vs hybrid long-short) but must account for the structural differences. Cross-category comparison is useful for asset allocation decisions but misleading for performance comparisons. SIFscan's compare tool allows multi-category comparison with clear category labels.
How do I compare SIF expense ratios?
SIF TERs are published daily on AMFI and disclosed on each AMC's website. SIFscan aggregates TER data per fund. When comparing, ensure you're comparing the same plan (Direct vs Regular). Direct plans have no distributor commission and lower TERs. Also note that SIF TERs may change as AUM grows (economies of scale).
Where can I find SIF portfolio disclosures to compare holdings?
SIF portfolio disclosures are published on the AMC website bi-monthly (every two months). AMFI compiles monthly AUM data. SIFscan's Documents section aggregates ISID (Information Statement for Investors), SAI, and KIM documents per fund. Full portfolio holdings at the stock level are disclosed bi-monthly per SEBI mandate.
Framework Ready
Complete this article to make progress toward this badge.
Continue reading
This content is for educational purposes only and does not constitute investment advice. Regulatory frameworks may change. Always verify with official SEBI circulars and consult a qualified financial advisor before investing. Last updated: March 2026.