Specialized Investment Funds · intermediate
SIF Strategies — The Rules
The seven long-short strategies SEBI permits for a SIF, in equity-oriented, debt-oriented and hybrid groups: each strategy's minimum allocations, the 25% cap on unhedged short exposure, and the limits on gross exposure and single issuers.
- 01Equity-Oriented Long-Short Strategies — The RulesSEBI permits three equity-oriented SIF strategies. This lesson gives each one's minimum equity holding, explains how the 25% cap on unhedged short exposure works alongside it, and shows why a short position can add to losses.
- 02Debt-Oriented Long-Short Strategies — The RulesThe debt-oriented group has two SIF strategies. This lesson explains what each may hold, how short exposure works in debt, the single-issuer limit, and where returns and losses come from.
- 03Hybrid and Active Asset Allocator Strategies — The RulesThe hybrid group has two SIF strategies: the Hybrid Long-Short Fund, defined by two minimums, and the Active Asset Allocator Long-Short Fund, defined by the asset classes it moves between. This lesson covers both, and how tax follows the actual mix.
- 04Exposure and Concentration LimitsEvery SIF strategy works within the same exposure and concentration limits: a 100% ceiling on gross exposure, a 25% ceiling on unhedged short exposure through derivatives, and single-issuer limits. This lesson explains each, and what the limits do not do.