How to Pick the Right SIF
33 SIF funds. 5 categories. 17 AMCs as on Sep 2026 - Exactly one yr since launch of India's First SIF
The question isn't "Should I invest in SIF?" It's
"which SIF is right for me?"
Here's the framework that can help you choose the right SIF.
The standard mutual fund selection framework - look at 3-year
and 5-year returns, check Sharpe ratio, compare to benchmark - doesn't work for
SIF.
Reason: Most SIFs are less than 12 months old. There is no
3-year track record. The oldest fund (Magnum Hybrid, SBI MF) launched in
September 2025. You're selecting based on: fund manager track record in
related strategies, strategy clarity and design, AMC capability, structure and
costs, tax efficiency, and liquidity design.
We've formalised this into a 6 point framework that can help you choose SIF best suited for your needs.
Point 1: Vintage
A fund with 8 months of history gives you limited but real
data. A fund that just completed NFO gives you nothing beyond the stated
strategy. The biggest myth in investing is a 10 NAV - NFO is cheaper and hence better than an 6 month old fund with NAV 11. Read this article to clear this misconception which results in investor losses in tunes of crores every year.
Point 2: Since-Inception Return
The highest weighted factor - because despite the short
history, actual returns tell you something.
The Nifty 50 is down 4.12% over the last 12 months. A fund
that has returned +3% in the same period has done something right.
Based on return relative to category peers and
benchmark. You can check point to point return from AND Fintech's detailed fund card section.
Point 3: Consistency
A fund that returns 5% with steady monthly progress is better than one that returned 5% via a single lucky month and then went flat.
Returns are not just to be measured in silos, ideally it should be measured against per unit of risk involved. A more volatile fund returning 9% CAGR is more risky than a less volatile fund giving similar returns in long term.
Point 4: Expense Ratio
BER (Base Expense Ration) directly reduces your returns. Every basis point counts over 5+ years.
Current range across SIFs:
• Lowest: 0.6%
• Highest: 2.1%
• Most funds: 1.45 - 1.60%
The BER difference between 0.6% and 2.1% is 107 basis points
annually. On ₹25 lakh over 5 years: ₹1.87 lakh difference in costs alone. Check AND Fintech Dashboard for fund wise BER.
Point 5: Strategy Clarity
Can you explain this fund's strategy in one sentence?
If the fund manager can't explain the strategy simply, it's
harder to evaluate execution. And harder to know when the fund is behaving as
expected vs going off-mandate.
Point 6: Tax Efficiency and Liquidity
Tax efficiency: Group A funds Equity taxation (20% STCG, ₹1.25L exempt) , Group B funds LTCG at 12.5% but STCG at slab rates. Slab rate taxation can drag returns by a few percent annually for HNIs.
If high liquidity is a preference choose daily open-ended funds over weekly /fortnightly interval redemption funds.
Get the AND Fintech SIF Tax Guide, to get fund by fund taxation breakdown.
For any further queries Book a Free Expert Call
Dwipa Shah | AND Fintech |
NISM Certified: Series 5A
(MF) · Series 21A (PMS) · Series 19A (AIF) · Series XIII (SIF)
ARN-301536 | https://andfintech.in/sif