Question 1

What are the asset classes currently covered under SIF?

Accepted Answer

SIF operates under a regulated framework governed by SEBI. Currently SEBI has permitted investment strategies under 3 categories:

A) Equity oriented Investment strategies
B) Debt oriented Investment strategies
C) Hybrid investment Strategies

Under the mentioned strategies, SIF can take positions in Equity and Equity related derivates, Debt and Debt related derivatives, Commodity derivatives and InvITs.

Question 2

What is the minimum investment required under SIF?

Accepted Answer

Investors need to have Minimum Investment Threshold (MIT) of ₹10 lakh invested at aggregate level across the AMCs SIF offerings. This floor limit has to be maintained during entire tenure of investment with the AMC’s SIF. SIP amount can be lower, but investor needs to maintain MIT in terms of aggregate holdings across SIFs of an AMC.

The AMC shall ensure that the investor's total investment value does not fall below the MIT of ₹10 lakh due to redemption transactions initiated by the investor.

Question 3

Are SIP, SWP, STP transaction allowed under SIF?

Accepted Answer

Yes, SIF can offer investment facility including SIP, SWP and STP, subject to compliance of MIT. STP can only be offered within SIF category.

Question 4

What will be the process for Portfolio and NAV disclosure?

Accepted Answer

The SIF shall disclose portfolio (along with ISIN), including derivative instruments, as on the last day of every alternate month within 10 days from the close of such month. NAVs are disclosed by 11:00 PM on the same business day (T day). Investment strategies with ETCDs exposure, will have the NAV declared by 9.00 am on following business day.

Question 5

What is the Subscription and Redemption frequency?

Accepted Answer

The subscription and redemption frequency will be based on SIF category. Frequency may differ for Subscription and Redemption.

Question 6

How will the Scheme offer Liquidity for the investors?

Accepted Answer

Open ended scheme will offer liquidity based on nature of the Product Interval and close ended investment strategies will mandatorily be listed on Exchange to offer exit option to the redeeming investors.

Question 7

What is the extent for Derivatives exposure in the scheme?

Accepted Answer

SIF can take Derivative exposure for Hedging and Non-Hedging Purpose. For Non-Hedging purpose, derivatives positions can be taken to maximum of 25% of net assets. The same can only be taken through Exchange Traded Derivates instruments.

Question 8

What is the taxation in SIF?

Accepted Answer

Taxation in SIFs is aligned with Mutual Fund taxation. Equity strategies are subject to 12.5% long-term capital gains (LTCG) tax, while short-term gains (STCG) are taxed at 20%. Debt-oriented strategies are taxed as per the investor’s applicable slab rate. For hybrid strategies with less than 65% allocation to debt/equity and an investment horizon of 12/24 months, the applicable LTCG tax is 12.5% while STCG will be taxed as per slab rates.

	Equity strategies	Debt Strategies	Hybrid Strategies
LTCG	12.50%	Slab rate	12.50%
STCG	20%	Slab rate	Slab rate

Surcharge as applicable + Health and Education Cess applicable at 4% on aggregate of base tax + surcharge.

Tax disclaimer :- Investors are requested to take professional advice while making investment decisions. The information given here is neither a complete disclosure of every material fact of Income Tax Act (2025), nor it constitutes a legal or tax advice.

Question 9

How is risk measured for any SIF Investment Strategy?

Accepted Answer

Every SIF strategy will have a Risk Band which would provide level of risk involved.

Question 10

How long should an Investor remain invested?

Accepted Answer

SIF are strategies that will follow sophisticated investment approach. With the structure of the SIF, it is targeted for investors with commensurate risk appetite, looking to diversify from traditional investment with lower investments compared with AIF or PMS.

Depending on investment objective, ideal investment time frame can be 2-5 years for medium term goals and 5 years and above for long term wealth creation objective.