SIF vs Mutual Fund vs PMS vs AIF
SIFs sit between mutual funds (₹100 minimum, long-only) and PMS (₹50 lakh, individual portfolios). This guide compares all four across 10 key dimensions.
What you'll learn
Key Takeaway
SIFs bridge the gap between mutual funds and PMS/AIFs: ₹10 lakh minimum (vs ₹100 for MFs, ₹50 lakh for PMS, ₹1 crore for AIFs), pooled NAV-based structure with daily liquidity, long-short capability with derivatives, and SEBI-regulated TER caps. SIFs are the only vehicle combining daily NAV, monthly risk bands, and derivatives-based alpha in a single regulated structure.
What Makes SIFs Different?
Specialized Investment Funds bridge the gap between mutual funds and PMS/AIFs. They offer long-short capability (like PMS/AIF) with mutual fund-grade regulation and transparency. The ₹10 lakh minimum makes sophisticated strategies accessible to HNIs who don't meet the ₹50 lakh PMS or ₹1 crore AIF thresholds. SIFs are the only vehicle that combines daily NAV, monthly portfolio disclosure, and derivatives-based alpha in a single regulated structure.
| Dimension | Mutual Fund | PMS | AIF Cat III | SIF |
|---|---|---|---|---|
| Min. Investment | ₹100 | ₹50 Lakh | ₹1 Crore | ₹10 Lakh |
| SEBI Regulated | Yes | Yes | Yes | Yes |
| Structure | Pooled, NAV-based | Individual portfolio | Pooled, drawdown | Pooled, NAV-based |
| Long/Short | No | Permitted | Yes | Permitted (up to 25%) |
| Derivatives Use | Limited (hedging) | Permitted | Yes | Permitted (alpha + hedging) |
| Portfolio Disclosure | Monthly | Monthly | Low | Bi-monthly; monthly risk band |
| Redemption | Daily (T+1 to T+3) | Daily | Lock-in 1–3 years | Daily |
| Risk Disclosure | Riskometer | N/A | N/A | Monthly 1–5 band |
| Fee Structure | TER regulated | Fixed + performance | 2/20 typical | TER regulated |
Row-by-Row Details
Min. Investment
SIF minimum is at PAN level across all SIF schemes. Accredited investors may have different thresholds.
SEBI Regulated
All four are regulated by SEBI. SIFs are managed by existing mutual fund AMCs.
Structure
SIFs follow the mutual fund pooled structure with daily NAV, making them more transparent than PMS.
Long/Short
The SIF framework permits up to 25% unhedged short positions. PMS may also short sell. Current live SIF schemes have not yet deployed short positions. Category III AIFs actively use long-short positioning.
Derivatives Use
SIFs are permitted to use derivatives for both alpha generation and hedging. PMS and AIFs may also use derivatives. Current live SIF schemes have not yet actively deployed derivatives-heavy strategies.
Portfolio Disclosure
SIFs disclose portfolios bi-monthly (alternate months) and publish a monthly 1-5 risk band. Mutual funds and PMS disclose monthly.
Redemption
Both SIFs and PMS offer daily redemption. AIFs typically have lock-in periods.
Risk Disclosure
SIFs have the most granular risk disclosure: a monthly numerical band from 1 (lowest) to 5 (highest).
Fee Structure
SIF fees follow mutual fund TER caps. No performance fee allowed.
Regulatory References
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This comparison is structural and regulatory in nature. It does not imply that any vehicle type is superior or more suitable for any investor. Each vehicle serves different needs and risk profiles. This is not a recommendation to invest in or avoid any category. Verify details with official SEBI circulars and scheme documents before making investment decisions. Last updated: March 2026.