The Securities and Exchange Board of India (SEBI) has introduced a new category of investment vehicles called Specialized Investment Funds (SIFs) to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). These funds offer enhanced portfolio flexibility while maintaining regulatory oversight. The framework, effective from April 1, 2025, aims to provide investors with additional investment options with varying risk-return profiles. Key Highlights of the Regulatory Framework 1. Eligibility Criteria for SIFs Mutual Funds seeking to establish an SIF must meet one of the following eligibility criteria: Route 1 - Sound Track Record: Operate for at least three years with an average AUM of ₹10,000 crores. No regulatory action taken against the sponsor/AMC in the past three years. Route 2 - Alternate Route: Appointment of a CIO with at least 10 years of fund management experience and an AUM of ₹5,000 crores. Appointment of an additional fund manager with three years o...