SIF will have a much higher entry hurdle of ₹10 lakh, so that the truly retail type of investors are kept out. As a product, the SIF will allow long-short strategies, derivatives beyond underlying, higher equity and debt exposure to sectors and also to companies. In short, flexibility in an SIF is much higher. While SIF will be covered under the SEBI framework, it will have less conditions and restrictions compared to mutual funds. However, the tax treatment will be almost similar. 

Edelweiss AMC, which plans to launch its first SIF, plans to launch it under a distinct brand identity of Altiva. Actually, the reasons are not too far to seek. The SIF is still an untested animal in Indian market conditions and obviously, the AMCs that have already built a strong mutual fund brand, are not comfortable with diluting their core brand in a worst-case scenario. The SIF does run some unique risks in India like liquidity risk, risk of strategy illiquidity, spread risk in large transactions etc. Even if SIFs do not turn out as promised, the AMCs are ensuring that their core brand, which is synonymous with MFs, is not diluted. 

One thing we learnt from mutual funds in the last few years is that it is highly unlikely that mutual funds perform badly in a year when market has surged. That normally does not happen since most of the generic funds move in a defined space and with a defined strategy. In the case of SIF, each SIF scheme could have a unique strategy, entirely based on comfort level of the fund manager and their perception of risk, and returns. That means; you could have SIFs that underperform even when the markets are good, assuming that the manager adopted the wrong strategy. Also, the commission structure of SIFs is likely to be very competitive and could actually induce managers to take on more risk! 

For now, it is best to wait and watch, before jumping into SIFs for meeting your long-term goals. By default, the SIF will have tailor-made bespoke sort of strategies. That should technically let the investor plan their journey better. However, at this juncture, SIF is still not tested in the Indian context. One has to wait for strategies, processes, and the performance to evolve. For now, mutual funds are doing a good job. MFs are just based on the principle of prioritizing time over timing in the market. Stay put for long and your goals will be met. In an SIF, there is no such assurance. For now, do not mix SIF with your goals!