Fund Advisor's Note

Choice and risk

Why waiting to invest in SIFs might be the best strategy

Why waiting to invest in SIFs might be the best strategyAditya Roy/AI-Generated Image

हिंदी में भी पढ़ें read-in-hindi

Every few years, the mutual fund industry presents us with a shiny new product that promises to unlock superior returns. The latest entrant is the Specialised Investment Fund (SIF), which has generated considerable excitement among both investors and wealth managers. These funds promise to bridge the gap between traditional mutual funds and portfolio management services, offering sophisticated strategies with the regulatory comfort of mutual funds. The marketing pitch is compelling. SIFs can employ long-short strategies, invest in niche sectors, use derivatives for non-hedging purposes and generally do things that regular mutual funds cannot. The minimum investment of Rs 10 lakh gives them an air of exclusivity, whilst the sophisticated strategies suggest the possibility of superior returns. However, there's a fundamental principle about investing that tends to get lost in all this excitement: there is no magic formula that delivers higher returns without higher risk. What's equally im

This article was originally published on June 23, 2025.

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