The Securities and Exchange Board of India (SEBI) has released a consultation paper outlining draft regulations for Specialized Investment Funds (SIFTs), effective April 1, 2025. This framework aims to bridge the gap between mutual funds and portfolio management services, providing sophisticated investors with more flexibility. To establish a SIF, mutual funds must meet specific eligibility criteria, including asset management requirements and regulatory compliance. SIFs will have a minimum investment of ₹10 lakh and can adopt various equity, debt, and hybrid strategies. SEBI mandates distinct branding for SIFs, risk management protocols, and regular disclosures on portfolios and risks.