Starting April 1, 2025, fund houses will submit draft offer documents for Special Investment Funds (SIFs), designed for long-short strategies with a tax structure similar to mutual funds. SIFs can unhedge only 25% of their positions without leverage, unlike AIF-managed long-short funds that can fully unhedge. Experts believe SIFs will attract significant inflows due to favorable taxation compared to Category III AIFs, potentially generating Rs.50,000-Rs.1 lakh crore in their first six months. SIFs could also attract funds from bank fixed deposits, offering better risk-adjusted returns. MFDs will require certification to sell SIFs.