n NISM Certifications
NSM General NISM
Medium

What is one key reason SEBI introduced the SIF framework?

Practice question from Advanced B1 S2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To eliminate PMS products

  2. B

    To replace AIFs

  3. To address the gap between Mutual Funds and PMS/AIFs

    Correct answer

  4. D

    To restrict derivative usage in investments

Why this is the answer

SIFs were introduced to provide affluent investors with more flexible investment strategies while still operating within a regulated Mutual Fund-like ecosystem.

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