Long-Short SIFs
An equity fund with brakes. It will not top the charts in a strong bull run, because the hedges cost some upside. It is built to fall far less when markets drop.
Specified Investment Funds, SEBI's newest category, live since 2025. They can go long the stocks they like and short the ones they do not. The aim is equity-like returns with much smaller falls. Hedge-fund technique, mutual-fund rules and tax, ₹10 lakh entry.
By Yash Jhaveri, Founder & CEO, Beyond
Beyond · JSL Wealth Management · Vadodara · ARN XXXXX
Last reviewed September 2026 · Regulatory position as at September 2026
The job it does
- Staying in equity without full drawdown exposure
- A smoother ride for a first move beyond mutual funds
- Returns less dependent on markets only rising
Why people use it
- Downside management is built into the mandate, not left to timing
- MF-style tax and disclosure — far kinder than Cat III fund-level tax
- ₹10 L entry vs ₹1 Cr for a comparable AIF strategy
What can go wrong
- Hedging costs drag returns in strong bull runs
- Short track records — the category is young
- Manager skill matters far more than in index-hugging funds
Quick answers
What is the minimum investment in Long-Short SIFs?
₹10 L. Typical horizon 3–5 yrs; liquidity Scheme-defined windows.
How is a Long-Short SIF taxed?
Equity-oriented SIFs are taxed like equity mutual funds — STCG 20%, LTCG 12.5% beyond 12 months. A structural tax edge over Cat III AIFs.
What can go wrong with Long-Short SIFs?
Hedging costs drag returns in strong bull runs. Short track records — the category is young. Manager skill matters far more than in index-hugging funds.
Can an NRI invest in Long-Short SIFs?
SIF availability to NRIs is scheme-specific and evolving — confirm before shortlisting.
Does Long-Short SIFs belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
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