India, July 2 -- SIFs are a new investment option made for investors who want more flexibility than mutual funds. They sit between mutual funds and Portfolio Management Services (PMS). They offer advanced investment strategies but with a lower investment amount than PMS.

For NRIs, especially those living in the US, investing in SIFs can be simpler than investing directly through foreign investment products. This is because SIFs can reduce several tax and compliance challenges that NRIs often face.

US-based NRIs often have to deal with strict tax reporting rules when investing in foreign pooled funds, noted by Finnovate. These include regulations such as PFIC (Passive Foreign Investment Company) and FATCA, which require detailed tax repo...