SIF: High-Risk, High-Reward Investment Option for HNIs Gaining Traction

• Specialized Investment Fund (SIF) is a new investment option by SEBI, effective April 2025, bridging Mutual Funds and PMS.
• Designed for High Net-worth Individuals (HNIs) with a minimum investment of 10 lakh rupees, offering opportunities in both rising and falling markets.
• SIF managers use long-short strategies across equity, debt, or hybrid assets, allowing profit even in market downturns.
• Benefits include market-neutral returns, flexible portfolio management, and expert risk management.
• Key risks involve high potential for loss, low liquidity due to interval-based redemptions, and complex strategies involving derivatives.

Why It Matters: SIF offers HNIs a flexible, professionally managed, high-risk investment with potential for market-neutral returns.