Top Specialized Investment Funds (SIFs) in India 2025

Investing has changed a lot over the past few years, and one of the recent additions in 2025 is the rise of Specialized Investment Funds (SIFs). With features of derivatives and the flexibility of mutual funds, SIFs give investors a dynamic way to handle different market conditions. In this blog, we will walk through what SIFs are, who they are ideal for, and the top SIFs launched in India so far.

What is SIF? 

A Specialized Investment Fund (SIF) is a new kind of investment option in India that sits right between regular mutual funds and high-ticket PMS/AIF products. Consider it as a middle path: more flexible than a mutual fund but far more feasible than PMS or AIF, which usually require very large investments.

With SIFs, AMCs get the freedom to use more advanced strategies, like long-short investing, derivatives, or a mix of equity and debt, all under SEBI rules. And for investors, the entry barrier is much lower compared to PMS or AIF. SIFs start with a minimum investment of ₹10 lakh. They bridge a long-existing gap between MF & PMS/AIF.

Top Specialized Investment Funds 2025 

1. Quant Mutual Fund – QSIF Range

Quant offers some of the most active strategies in the market.
Their SIF range includes:

• Equity Long-Short Fund -Targets mid- and small-cap opportunities while using short positions to control risk.
  
• Hybrid Long-Short Fund – A mix of equity, debt, and derivatives for a more balanced feel.
  
• Equity Ex -Top 100 Long-Short Fund – Focuses on companies outside the top 100, with higher potential but higher volatility too.

2. Edelweiss Mutual Fund – Altiva SIF

Edelweiss runs its SIFs under the Altiva brand

• Their main product is a Hybrid Long-Short Fund that spreads money across equity, debt, arbitrage, and even special situations.
  
• It is curated in such a way that it can stay steady in both good and bad markets by managing risk smartly.

3. SBI Mutual Fund – Magnum SIF

SBI has created one of the most versatile SIFs called Magnum SIF.

• Their core strategy is a Hybrid Long-Short Fund that shifts between equity, debt, and derivatives depending on market conditions.
  
• The objective is to keep returns smoother rather than letting the portfolio swing wildly.

4. Union Mutual Fund – Arthaya SIF

Union MF offers its SIF under the name Arthaya SIF.

• This platform blends equity, debt, and derivatives using a long-short approach.
  
• It seems more measured and steady compared to the more aggressive AMCs.

5. Bandhan Mutual Fund – Arudha SIF

Bandhan AMC has stepped into the SIF with Arudha SIF.

• The fund uses equity, debt, and derivative-based long-short strategies.
  
• The idea is to offer something more flexible and advanced than a basic mutual fund.

6. ITI Mutual Fund – Divinity SIF

ITI MF runs its SIF under Divinity SIF.

• The key offering is the Divinity Equity Long-Short Fund, which tries to capture upside while protecting the investors against downturns.
  
• It uses long-short investing to balance growth and safety.

 7. 60 ONE – Dyna SIF

360 ONE (formerly IIFL Wealth) offers its SIFs under the Dyna SIF brand. These funds follow long-short and multi-asset strategies with an institutional, risk-managed approach.

Read Also: Best Investment Options in India

Who Should Invest in SIFs? 

1. Someone who wants more flexible strategies – If you feel traditional mutual funds are too boring and you are curious about derivatives, SIFs are a great option.
2. Anyone investing with a medium- to long-term mindset – SIFs generally work better if you are willing to stay invested for 3-5 years or more. Not ideal for someone who wants to exit quickly.
3. Investors comfortable with the ₹10 lakh minimum – Most SIFs require at least ₹10 lakh, so they’re a good fit for HNIs, seasoned investors, family offices, etc.
4. People who want MF transparency but PMS/AIF-style strategies – SIFs sit perfectly in the middle; you get the comfort of mutual fund regulation, but with the kind of strategies usually seen in PMS or AIF products.

Conclusion 

Although SIFs are relatively new to the investment space, they have already gained popularity. If you do not have a problem with taking extra risk for a better overall investment strategy, then you should consider including SIFs as a part of your portfolio. Before investing, you should understand how they work, learn about the minimum investment amount and find a known fund house. With a long-term perspective, you will be able to add further strength and stability to your wealth-creation goals using SIFs.

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