SIFs: The next era of investing

India has long been a nation of hardworking, disciplined savers. For generations, households were guided by one overriding principle: save money. Fixed deposits (FDs) represented safety, gold symbolised insurance, and real estate stood for permanence and dependability. These preferences were not accidental. They reflected a deep cultural respect for capital preservation.

One of the first meaningful shifts came with the rise of mutual funds. The now-familiar ‘Mutual Funds Sahi Hai’ campaign did more than popularise a product; it reshaped behaviour. Through Systematic Investment Plans (SIPs), investors learnt discipline. Over time, they learnt patience. Volatility became less intimidating, and long-term investing entered the mainstream: not overnight, but steadily.

Today, we are at the cusp of another transition. With rising levels of disposable incomes, shifts in demographics, and greater financial literacy, the Indian investor has evolved. The middle class is no longer new to markets. Many investors understand cycles, risk, and portfolio construction. Ticket sizes are rising, horizons are lengthening, and conversations are becoming more sophisticated. The question is no longer just “How much return will I get?” but “What risk am I taking, and how is it being managed?”


When investors change, products must evolve with them.

This is the context in which Specialised Investment Funds (SIFs), a new approach to investing under Securities and Exchange Board of India (SEBI) regulations, have been introduced, combining the simplicity of mutual funds with the depth and dynamism of alternatives.

Bridging an old divide
For a long time, the investment landscape was clearly divided. On one side were mutual funds, which operated in a highly regulated, transparent, diversified, tax-efficient framework, and were generally well-suited for long-term wealth creation. On the other were alternative strategies: more flexible, tactical, and sophisticated in approach, but typically structured for a smaller investor base while requiring greater investor involvement and understanding.

That binary served investors well for years. However, today, a growing segment finds itself in between: seeking more flexibility and differentiated outcomes, without compromising on transparency, governance, or regulatory comfort.

SIFs are designed precisely for this middle ground. They are not meant to replace mutual funds, nor to replicate alternative structures. Instead, SIFs are at the intersection of mutual funds and alternatives, offering an intermediate solution: investment flexibility, strategic innovation, and long-short alpha within a robust, transparent, and well-regulated framework.

A framework built on trust and protection
It is very important to acknowledge the regulator’s role in enabling this evolution responsibly. The introduction of SIFs reflects a thoughtful and forward-looking approach by SEBI: one that recognises the changing maturity of Indian investors while keeping investor protection firmly at the centre.

By creating a well-defined framework for SIFs, the regulator has expanded investor choice without diluting standards of safety, transparency, or governance. This ensures that flexibility in investment approach is matched by discipline in oversight.

The emphasis on strong governance, clear disclosures, qualified intermediaries, and risk controls reinforces confidence, both for investors and for institutions building these products. Just as importantly, it signals regulatory trust in investors’ growing ability to engage with more nuanced solutions, while ensuring that governance and transparency remain uncompromised.

In that sense, SIFs are not just a product innovation; they are a regulatory milestone. They demonstrate how markets can evolve thoughtfully, where investor protection and innovation are not competing priorities, but complementary ones.

How SIFs are different
SIFs are designed for focused and flexible investing. They allow fund managers to deploy a broader toolkit, beyond buy-and-hold equity, such that portfolios can respond more dynamically to changing market conditions.

Structurally, SIFs are permitted to hold long positions, use derivatives actively, and take short positions, including limited naked shorts. This flexibility allows managers to manage downside risk more precisely and address overvalued segments without dismantling long-term positions.

Operationally, SIFs may have defined notice periods, structured subscription and redemption windows, and the ability to launch interval funds that can be traded on stock exchanges. Importantly, this flexibility sits alongside mutual fund-style transparency, disclosures, and governance standards.

A different approach to risk
Most long-only equity strategies carry high market exposure. When markets rise, portfolios participate fully, but when markets fall, drawdowns are inevitable. SIFs are designed to work differently. By actively managing exposure and using derivatives and short positions judiciously, they aim to be risk-aware across cycles.

This does not mean SIFs are low-risk. They are market-linked and require a long-term perspective. But in certain environments, active risk management can help limit drawdowns and improve risk-adjusted outcomes over a full market cycle. In that sense, SIFs are not about eliminating risk; they are about managing it more thoughtfully.

Who should consider SIFs?
SIFs are most relevant for investors seeking differentiated outcomes beyond conventional long-only approaches. They suit those comfortable with defined notice periods and non-daily liquidity, and who value process-driven investing, discipline, and robust risk frameworks. An understanding of derivative-based strategies and their role in portfolio construction is important.

Generally, this includes family offices, HNIs, and other sophisticated investors. As with any investment, suitability depends on individual risk appetite and investment horizon, and investors should consult their financial advisors before participating.

Why SIFs align with our philosophy
Our investment philosophy has centred on risk-aware innovation and SIFs are a natural extension of how we think about portfolio construction. They bridge the gap between market realities and investment design, without forcing portfolios into rigid structures when flexibility is required.

Introducing DynaSIF
Within the SIF framework, DynaSIF by 360 ONE Asset reflects this philosophy of adaptability. Markets are dynamic, not linear, and portfolios must evolve accordingly. DynaSIF is built around responsive decision-making anchored in discipline: combining assets and derivatives to manage risk and opportunity across cycles.

While the strategy is sophisticated, the investor experience is not meant to be opaque. Transparency, structured reporting, and strong governance remain central. Complexity in strategy should never translate into complexity of understanding.

This perspective now finds expression in our first SIF offering, the DynaSIF Equity Long–Short Fund. Structured as an open-ended, differentiated equity strategy, it is designed to remain sector-, style- and market-cap-agnostic. By blending structural, cyclical, and tactical opportunities within a disciplined long-short framework, the fund seeks to pursue alpha across market cycles, without losing sight of risk, transparency, or governance.

Innovation with purpose
Innovation in asset management is often misunderstood. It is not about complexity for its own sake, nor about novelty. True innovation is about relevance: building solutions aligned with how markets actually behave, and with how investors themselves are evolving. Above all, innovation must serve investor outcomes.

SIFs represent evolution, not experimentation. As investor understanding deepens, SIFs are likely to become a permanent and meaningful part of India’s investment ecosystem, alongside mutual funds, AIFs, and PMS products.

In that sense, SIFs mark not a departure from disciplined investing, but its next chapter.

The author of the article is Anup Maheshwari, Co-Founder & CIO of 360 ONE Asset.

Disclaimer: The above commentary/opinions/in-house views/strategy incorporated herein is provided solely to enhance the transparency about the investment strategy/theme of the Investment Strategy and should not be treated as endorsement of the views/opinions or as investment advice. The above commentary should not be construed as a research report or a recommendation to buy or sell any security/scheme/investment strategy. The information/data herein alone is not enough and shouldn’t be used for the development or implementation of an investment strategy. The above commentary has been prepared based on information that is already available in publicly accessible media or developed through analysis of 360 ONE Mutual Fund/ DynaSIF. The information/views/opinions provided are for informative purposes only and may have ceased to be current by the time they reach the recipient, which should be considered before interpreting this commentary. The recipient should note and understand that the information provided above may not contain all the material aspects relevant to making an investment decision, and the stocks may or may not continue to form part of the scheme’s portfolio in the future. The decision of the Investment Manager may not always be profitable, as such decisions are based on the prevailing market conditions and the understanding of the Investment Manager. Actual market movements may vary from the anticipated trends. The statements made herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alterations to this statement as may be required from time to time. Neither 360 ONE Mutual Fund/ DynaSIF / 360 ONE Asset Management Ltd, its associates, directors, or representatives shall be liable for any damage,s whether direct or indirect, incidental, punitive, special, or consequential, including lost revenue or lost profits that may arise from or in connection with the use of the information.

Investments in a Specialised Investment Fund involve relatively higher risk, including potential loss of capital, liquidity risk, and market volatility. Please read all investment strategy-related documents carefully before making the investment decision.