With reference to the concept of Specialized Investment Funds (SIFs), consider the following statements:

SIFs require a minimum investment of ₹10 lakh across all strategies.

SIFs can invest up to 25% of net asset value in a single sector.

SIFs must appoint a Chief Investment Officer with at least 10 years of experience.

SIFs can take up to 25% exposure in derivatives for hedging purposes only.

How many of the above statements are correct?

Question

SIFs require a minimum investment of ₹10 lakh across all strategies: This is correct. The framework mandates this minimum investment.
SIFs can invest up to 25% of net asset value in a single sector: This is correct. The regulation allows this investment limit.
SIFs must appoint a Chief Investment Officer with at least 10 years of experience: This is correct. The requirement is for the CIO to have 10 years of experience.
SIFs can take up to 25% exposure in derivatives for hedging purposes only: This is incorrect. SIFs can take this exposure for purposes other than hedging.

GKToday Admin · Accepted Answer

Only three

SIFs require a minimum investment of ₹10 lakh across all strategies: This is correct. The framework mandates this minimum investment.
SIFs can invest up to 25% of net asset value in a single sector: This is correct. The regulation allows this investment limit.
SIFs must appoint a Chief Investment Officer with at least 10 years of experience: This is correct. The requirement is for the CIO to have 10 years of experience.
SIFs can take up to 25% exposure in derivatives for hedging purposes only: This is incorrect. SIFs can take this exposure for purposes other than hedging.

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