Specialised Investment Funds (SIFs) are a new framework introduced by SEBI in early 2025 that is set to transform the Indian mutual fund industry
. These funds are a hybrid solution, bridging the gap between Mutual Funds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs)
. SIFs are designed for sophisticated investors and high-net-worth individuals (HNIs), and they aim to provide strategies, such as long-short, that were not previously possible in traditional mutual funds
.
Key Features of SIFs
The uniqueness of SIFs lies in their structure and investor focus. The table below highlights the key differences between SIFs and traditional mutual funds:
In essence, SIFs combine the transparency of mutual funds, the customization of PMS, and the strategy focus of AIFs.
Impact of SIFs on the PMS Industry
The introduction of SIFs is seen as a major disruptor, particularly for the Portfolio Management Services (PMS) industry. With a relatively lower entry point of ₹10 lakh compared to the typical ₹50 lakh ticket size for PMS, there is concern that PMS providers may lose inflows. In response, the Association of Portfolio Managers in India (APMI) has approached SEBI to reduce the minimum investment threshold for PMS and simplify NRI KYC norms to remain competitive.
NISM SERIES XIII COMMON DERIVATIVES COMPLETE GUIDE
Demand for a Qualified Workforce
The emergence of SIFs and their complex strategies—like long-short equity and advanced sectoral bets—is creating a strong demand for skilled finance professionals. To succeed in this evolving industry, professionals must have a firm grasp on:
- Derivatives
- Risk management
- Portfolio construction
- SEBI compliance frameworks
Certifications like the NISM Series XIII: Common Derivatives Certification are becoming vital for those looking to build a career in this field.
How to Prepare for the SIFs Era
Prof. Sheetal Kunder Academy recognizes the significant shift SIFs will bring to the financial services industry and offers programs designed to prepare the next generation of professionals. The programs aim to:
- Train candidates for NISM certifications, including Series XIII.
- Provide practical, case-study-based learning on long-short and hedge-style strategies.
- Bridge the gap between theoretical knowledge and practical application, ensuring students are market-ready.
- Guide finance professionals on career opportunities in Mutual Funds, PMS, and SIFs.
- By acquiring the right knowledge and credentials, professionals can stand out in this new era of Indian capital markets.
Conclusion: The introduction of SIFs marks the beginning of a new chapter in India’s capital markets. With flexibility, transparency, and investor-centric design, they promise to reshape how sophisticated investors participate in markets. However, this also brings the need for a skilled and certified workforce that can navigate complex strategies with confidence.At Prof. Sheetal Kunder Academy, we are proud to contribute to this transformation by building the next generation of finance professionals ready to lead in the era of SIFs.
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