Archive · 2 Sep 2026
How India’s ₹10 Lakh SIF Investment Threshold Works
A Specialised Investment Fund, or SIF, has a ₹10 lakh minimum investment rule.
An investor does not have to put all ₹10 lakh into one SIF strategy.
They can divide the money among different SIF strategies offered by the same AMC.
Investments linked to the same PAN are counted together for that AMC.
Money held in ordinary mutual funds does not count.
SIPs, SWPs, and STPs are allowed if the investment meets the threshold.
If the value falls because markets decline, the investor may not need to add more money.
However, the experts differ on what redemption action is allowed after such a decline, while investor-initiated reductions can freeze the SIF holdings for debit.
The ₹10 lakh minimum applies collectively across SIF strategies offered by one AMC, not to each strategy.
Investments are added across all folios and holding modes linked to the investor’s PAN with that AMC.
Regular mutual fund holdings do not count toward the SIF threshold.
SEBI-accredited investors and certain mandatory AMC employee investments are exempt.
Market declines can reduce holdings below ₹10 lakh, but redemption rules differ depending on whether the breach is passive or investor-initiated.
- Who
- SIF investors, AMCs, SEBI-accredited investors, and AMC-designated employees.
- What
- The rules explain how the ₹10 lakh minimum investment requirement is calculated and what happens when holdings fall below it.
- Why
- To determine whether an investor meets the minimum SIF investment requirement for each AMC.
Nitin Agrawal’s explanation
Sougata Basu’s explanation
Holdings after a market-driven decline
Nitin Agrawal’s explanation
If holdings fall below ₹10 lakh because of market movements, the investor does not need to top up and can continue holding the investment.
Sougata Basu’s explanation
A market-driven decline is a passive breach; after it, partial redemption is not allowed and the investor must redeem the entire remaining investment.
- Minimum threshold
- ₹10 lakh in SIF investments.
- Calculation basis
- The threshold is calculated at the AMC level across that AMC’s SIF strategies.
- Investor identifier
- SEBI tracks eligibility at the individual investor’s PAN level.
- Eligible holdings
- Only SIF investments count; regular mutual fund holdings are excluded.
- Permitted transactions
- SIP, SWP, and STP are permitted while the aggregate SIF investment remains at or above ₹10 lakh.
- Exemptions
- SEBI-accredited investors and mandatory AMC investments for designated employees are exempt.
- Active breach
- If the investor causes the value to fall through actions such as redemption or transfer, all units across the SIF strategies are frozen for debit.