Key Takeaways
- • Specialised Investment Funds (SIFs) crossed Rs 38,287 crore in AUM in September 2026, a 22.8% on-month rise, according to the source article citing ValueMetrics data.
- • The category recorded net inflows of Rs 7,578 crore in September, down from Rs 7,699 crore in August, and Rs 37,606 crore over the trailing 12 months.
- • SIFs carry a Rs 10 lakh minimum ticket size and permit long-short strategies and derivatives within the mutual fund framework, with equity long-short funds capped at 25% unhedged short exposure.
- • Advisers interviewed are split on suitability: Anand Rathi Wealth's Rajan Sarkar advises avoiding SIFs until they show a track record across market cycles, while Tata AMC's Suraj Nanda views them as a dynamic risk-management tool for suitable investors.
- • The first SIF launched in October 2025, so the category has less than one year of operating history across market cycles.
Summary
Specialised Investment Funds (SIFs) are attracting growing investor interest in India, with assets under management reaching Rs 38,287 crore in September 2026, a 22.8% on-month increase, according to a report by ValueMetrics cited by The Economic Times. The category took in Rs 7,578 crore of inflows during September, driven by hybrid and equity-oriented strategies, and has received Rs 37,606 crore over the last 12 months. One new equity-oriented strategy launched in September, mobilizing Rs 377 crore. The first SIF was launched in October 2025.
SIFs sit between traditional mutual funds and portfolio management services (PMS). They give fund managers greater flexibility to use long-short strategies and derivatives while remaining within the mutual fund regulatory framework. The category includes three equity-oriented strategies (equity long-short, equity ex-top 100 long-short, and sector rotation long-short), two debt strategies (debt long-short and sectoral debt long-short), and two hybrid strategies. Equity long-short funds must hold at least 80% in equity and related instruments, with unhedged short exposure capped at 25%. Equity ex-top 100 funds must hold at least 65% in stocks outside the top 100 by market capitalization. Sector rotation funds must hold at least 80% across a maximum of four sectors.
The main caution centers on the Rs 10 lakh minimum investment, which Rajan Sarkar, Director and Unit Head at Anand Rathi Wealth Limited, said makes SIFs less accessible and can create concentration risks for investors without a sufficiently large portfolio. He said SIFs are relatively new and have not yet been tested across different market cycles, and recommended that investors currently avoid allocating to the category, instead structuring existing equity and debt holdings around their objectives, tenure and risk profile.
Suraj Nanda, Fund Manager – SIF at Tata Asset Management, argued that the ability to dial equity risk up and down is what distinguishes the category, and that investors should prioritize risk management over returns in the current environment. He said that a traditional 60% equity and 40% debt portfolio could see around half of its equity allocation move to SIFs, though the outcome would depend on strategy, positioning and market conditions. He added that SIFs are suitable only for investors who understand the strategy, risks and minimum investment requirements, and said the category has the potential to grow significantly over the next two to three years while cautioning that it is too early to judge performance on less than one year of history.
SIFs sit between traditional mutual funds and portfolio management services (PMS). They give fund managers greater flexibility to use long-short strategies and derivatives while remaining within the mutual fund regulatory framework. The category includes three equity-oriented strategies (equity long-short, equity ex-top 100 long-short, and sector rotation long-short), two debt strategies (debt long-short and sectoral debt long-short), and two hybrid strategies. Equity long-short funds must hold at least 80% in equity and related instruments, with unhedged short exposure capped at 25%. Equity ex-top 100 funds must hold at least 65% in stocks outside the top 100 by market capitalization. Sector rotation funds must hold at least 80% across a maximum of four sectors.
The main caution centers on the Rs 10 lakh minimum investment, which Rajan Sarkar, Director and Unit Head at Anand Rathi Wealth Limited, said makes SIFs less accessible and can create concentration risks for investors without a sufficiently large portfolio. He said SIFs are relatively new and have not yet been tested across different market cycles, and recommended that investors currently avoid allocating to the category, instead structuring existing equity and debt holdings around their objectives, tenure and risk profile.
Suraj Nanda, Fund Manager – SIF at Tata Asset Management, argued that the ability to dial equity risk up and down is what distinguishes the category, and that investors should prioritize risk management over returns in the current environment. He said that a traditional 60% equity and 40% debt portfolio could see around half of its equity allocation move to SIFs, though the outcome would depend on strategy, positioning and market conditions. He added that SIFs are suitable only for investors who understand the strategy, risks and minimum investment requirements, and said the category has the potential to grow significantly over the next two to three years while cautioning that it is too early to judge performance on less than one year of history.
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