SIF minimum investment rules: the ₹10 lakh threshold explained

The ₹10 lakh minimum applies per AMC at the PAN level across all of that AMC’s SIF strategies combined — not per individual scheme.

Every investor in a SIF strategy must maintain a minimum investment of ₹10,00,000. This is a regulatory threshold, not a fund-house preference, and it applies uniformly across the industry.

Importantly, the ₹10 lakh requirement is calculated at the PAN level, aggregated across every SIF strategy offered by a single AMC — not per scheme. That means you could put ₹6 lakh into an Equity Long-Short strategy and ₹4 lakh into a Hybrid Long-Short strategy from the same fund house, and together they satisfy the threshold.

Accredited investors, as defined under SEBI rules, are exempt from this minimum entirely.

SIPs and STPs are permitted into SIF strategies, provided the total invested value eventually reaches and is maintained at ₹10 lakh.

FAQs

Per AMC, aggregated at the PAN level across all SIF strategies that AMC offers — not per individual scheme.

If it falls below the threshold due to a redemption or transfer, the AMC must give a 30-calendar-day notice to rebalance. If you don’t, your units are frozen until you do. Market-driven NAV fluctuation alone (without a redemption) does not trigger this.

Yes, SIPs and STPs are allowed, as long as your total investment eventually reaches and stays at the ₹10 lakh minimum.

Investors who qualify as "accredited investors" under SEBI’s framework are exempt from the minimum investment threshold.
This article is general educational information, not investment or tax advice. Please consult a SEBI-registered adviser before making investment decisions.

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