Specialised Investment Funds, commonly referred to as SIFs, are market-linked pooled products with features that can differ from mutual fund schemes, PMS arrangements and Alternative Investment Funds (AIFs).
This article is for general information only. Product features, minimum investment amounts, strategy limits and eligibility conditions are governed by the current scheme documents and applicable framework.
What Is a SIF?
A SIF is a pooled market-linked product with a specified investment mandate. Depending on the scheme, it may have exposure to equity, debt, derivatives or multiple asset categories.
Some schemes may use derivative positions as part of their stated mandate. Such positions carry risks and do not eliminate the possibility of loss.
The minimum investment amount, risk classification, liquidity terms, fees and portfolio approach are stated in the relevant offer document and related disclosures.
Product Features to Review
Before participating in any SIF, it is useful to read the official documents for information on:
- Minimum investment amount
- Investment mandate
- Asset categories and exposure limits
- Use of derivatives, if permitted
- Liquidity and redemption conditions
- Fees and expenses
- Risk disclosures
- Benchmark details, where applicable
- Tax treatment under prevailing law
Comparison of Common Product Categories
| Category | Holding format | Minimum amount | Product features |
|---|---|---|---|
| Direct equity | Individual holding | Varies | Direct exposure to listed securities |
| Mutual fund scheme | Pooled holding | As stated by the scheme | Scheme-specific mandate and disclosures |
| SIF | Pooled holding | As stated in current documents | May include multiple asset categories and derivatives |
| PMS | Direct holding arrangement | As per applicable requirements | Agreement-based holding and transaction structure |
| AIF | Pooled holding | As per applicable requirements | Category-specific fund structure |
Figures, features and conditions may change. The current product document is the primary source for verification.
Understanding Derivative Exposure
Derivative positions may be used in certain SIF strategies where permitted by the scheme mandate. Their purpose and effect depend on the strategy, market conditions, costs and execution.
Derivative exposure can increase complexity and may involve:
- Market volatility
- Liquidity risk
- Counterparty risk
- Valuation differences
- Losses exceeding expectations in adverse market conditions
A derivative-based strategy does not provide assured protection during market declines.
Important Considerations
SIFs are market-linked products and are not equivalent to savings accounts, fixed deposits or emergency reserves. The value of investments can rise or fall, and there is no assurance regarding returns or capital preservation.
Each investor’s circumstances, investment duration, liquidity requirements and ability to absorb market fluctuations can differ. Participation requires review of the relevant scheme documents, risk disclosures and costs.
Closing Note
SIFs represent an additional market-linked product category with scheme-specific features. They do not replace other product categories; each operates under separate terms, risks and eligibility conditions.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully.