Mirae Asset and Edelweiss AMC have launched Specialised Investment Funds (SIFs) called “Platinum SIF” and “Altiva.” These funds offer theme-based portfolios with more flexibility than mutual funds but lower entry barriers than portfolio management services (PMS).
What Are SIFs?
SIFs are a new SEBI-regulated product designed for high-net-worth and sophisticated investors. They allow fund managers to create focused, theme-based portfolios with a minimum investment of ₹10 lakh.
How SIFs Differ from Mutual Funds
Mutual funds require a low minimum investment of around ₹100 and follow strict SEBI categories like equity or debt. They target retail investors and offer limited customization. SIFs, on the other hand, require a minimum ₹10 lakh investment, provide greater flexibility in strategy and asset allocation, and are aimed at HNIs and sophisticated investors. While mutual funds have strict daily NAV reporting, SIFs have regulated but more flexible operational rules.
How SIFs Compare to PMS
Portfolio Management Services usually require a minimum investment of ₹50 lakh, involve direct stock ownership in the client’s name, and charge higher fees often linked to performance. PMS targets ultra HNIs. SIFs require a lower minimum investment of ₹10 lakh, offer pooled units similar to mutual funds, and are expected to have more cost-efficient fees. SIFs are suitable for affluent and semi-HNI investors and follow stricter regulatory disclosure than PMS.
Why Choose SIFs?
SIFs offer a lower entry point than PMS and more flexibility than mutual funds. They provide professional management focused on specific themes, with diversified exposure under a regulated framework.
Who Should Invest?
Investors with a higher risk appetite who want specialized strategies beyond regular mutual funds and can invest ₹10 lakh or more will find SIFs a good middle ground.
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