SIFs offer high flexibility in strategy, including long-short positions and the use of derivatives, distinguishing them from the typically long-only strategies of Mutual Funds. Liquidity is moderate, with redemption frequencies varying from daily to quarterly.

SIFs operate under SEBI’s Mutual Funds Regulations with specific provisions.

SIF strategies fall into three main categories: Equity-Oriented, Debt-Oriented, and Hybrid, each allowing for different investment approaches and short positions.

Several Asset Management companies in India are launching or have launched SIFs.