Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, has urged investors to exercise caution amid rising interest in Special Investment Funds (SIFs). She highlighted the importance of asking the right questions before committing their money.
In a post on X, Gupta addressed a common query, which is “Should I buy a SIF?” Instead of this, she suggested asking “better questions” that would help in understanding the purpose and potential risks of such investments.
The questions Gupta suggested were, “1. What problem is the SIF solving (compared to existing alternatives)? 2. Do I need this kind of solution for my asset allocation and needs? 3. What can go wrong, over the short and long term?”
Gupta added that that strong investment portfolios are built on careful consideration, not haste. “Good portfolios start with good questions. Bad portfolios start with urgency,” she wrote,” highlighting the dangers of making decisions based on excitement or fear of missing out.
Question: Should I buy a SIF?
— Radhika Gupta (@iRadhikaGupta) February 10, 2026
Better questions:
1. What problem is the SIF solving (compared to existing alternatives)?
2. Do I need this kind of solution for my asset allocation and needs?
3. What can go wrong, over the short and long term?
Good portfolios start with…
Gupta's post gained traction, sparking many comments.
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Some users expressed curiosity about specific SIF offerings. One asked, “When can investors (having higher risk aversion) expect the launch of a pure equity long-short SIF? At present, no AMC has introduced a pure equity SIF. Is there any specific regulatory, risk-management, or market-related reason for the absence of such products so far?”
To this, Gupta responded, “Wait for a few months for something from us,” signalling that Edelweiss may soon explore this space.
Wait for a few months for something from us :)
— Radhika Gupta (@iRadhikaGupta) February 10, 2026
Other comments reflected investors' broader concerns about understanding SIFs before investing.
A user said, “Most people jump to ‘should I buy' without understanding what problem it solves or where it fits,” echoing Gupta's emphasis on asking the right questions.
Most people jump to “should I buy” without understanding what problem it solves or where it fits.
— Investingwithlakshay (@Investingw25071) February 10, 2026
Another wrote, “My opinion is the product needs more refinement before serious consideration. Currently it is trying just too hard to place itself smack middle of mutual fund and PMS,” highlighting scepticism about whether SIFs have clearly defined their niche in the market.
My opinion is the product needs more refinement before serious consideration. Currently it is trying just too hard to place itself smack middle of mutual fund and PMS.
— Pranav Hasabnis (@pranav_hasabnis) February 11, 2026
ALSO READ: Why Are Hybrid SIFs Leading India's New Investment Category?
What Are SIFs?
Specialised Investment Funds (SIFs) are a relatively new type of investment vehicle, created to fill the gap between mutual funds and portfolio management services (PMS).
While mutual funds allow investments starting from just a few hundred rupees, PMS products usually require a minimum commitment of around Rs 50 lakh.
SIFs occupy the middle ground, with a minimum investment of Rs 10 lakh. This makes them suitable for relatively sophisticated investors who fall between the retail segment and traditional HNIs.
Another feature of SIFs is their investment approach. Some focus on equities, others on debt, while certain funds adopt hybrid strategies that blend equity and debt. They can also vary in structure, such as being open-ended, closed-ended or interval funds.
Before investing, a person needs to understand the fund's strategy and where most of its assets are allocated. These factors determine both risk and potential returns.
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