Now mutual funds and PMS are old! SIF is the new 'star' of the investment world; this investment option may blow your mind

If you want to move forward by leaving old investment options like mutual funds and PMS, then the Specialized Investment Fund (SIF) can become a new and smart option for you. Yes, this fund, launched by SEBI in March 2024 gives investors low investment limit and better transparency. SIF is for those who want to invest at professional level in less capital. So let's know everything about it now.

If you are looking for some different and smart option in the world of investment these days, then Specialized Investment Fund i.e. SIF can be a great option for you. This is not a common fund, but for those who think beyond mutual funds or PMS. Yes, SIF works to give a lot of freedom and better control, so that investors can decide their investment planning themselves.

Let us tell you that in March 2024, SEBI launched Specialized Investment Fund (SIF) to fill a big gap in the world of investment. By the way, this fund is best for those investors who think beyond mutual funds, but do not want to bet in schemes like PMS or AIFs. Actually, in SIF, investors can invest more freely according to their need and understanding. It follows more stringent rules than AIF and also makes investment possible in less amount than PMS.

Actually, Specialized Investment Fund (SIF) is especially for those experienced investors who want to go beyond mutual funds and invest with more control and special planning. SIFs are considered less expensive than PMS and AIFs and also work to give more flexibility to the investor. So if you are thinking of investing ₹ 10 lakh or above, then choosing SIF can be a good option. Let us tell you that mutual funds are good for those investors who want to start investing with a small amount and do not want to take much risk. Basically, in this, the money of many people is put together and invested in different shares, bonds and schemes through professional managers.

While PMS i.e. Portfolio Management Services are good for those investors who invest a large amount and want that their money can be managed by professional experts according to their needs and risk profile. In this, an investment of at least ₹ 50 lakh is considered necessary. This service is personalized, so the potential returns are high, but the risk and expenses are also high.

Investing in SIF i.e. Specialized Investment Fund is not everyone's cup of tea, only those people can invest in it who are High Net Worth Individuals (HNIs) and also have the ability to bear the risk. The special thing is that some investors can also invest in SIF indirectly through feeder funds or fund-of-funds.

Before investing in it, it is important for every investor to understand its risky aspects. These funds promise high returns, but due to derivatives and leverage, there is a lot of risk in them. Generally, 1-2% annual management fee and 10-20% performance fee is charged in them, which is much higher than mutual funds. Therefore, before investing, read its document carefully, in which all the terms of the fund's holdings, risk factors and liquidity should be known and understood before investing. (Note: This article is for information only and should not be considered as investment advice in any way, it is suggested to consult financial advisors for investment)