SIF vs AIF: Understanding the Differences in Investment, Strategy, Risk and Regulation
The quick distinction
SIFs and AIFs both expand the investment universe beyond standard mutual fund choices, but they sit in different regulatory structures.
A Specialized Investment Fund operates within the mutual fund framework and offers defined specialised strategies. AIFs are privately pooled investment vehicles regulated under the SEBI Alternative Investment Funds Regulations and can invest across areas such as venture capital, private equity, private credit, infrastructure, complex trading strategies and other alternatives depending on their category.
For a typical non-accredited investor, the standard SIF threshold is ₹10 lakh. A typical AIF generally has a ₹1 crore minimum commitment per investor, with regulatory exceptions including accredited investors and certain other...