Specialised Investment Funds demonstrated robust performance in June 2026, with assets under management rising 29% month-on-month to ₹17,857.77 crore from ₹13,814 crore in May, according to the ValueMetrics Mutual Fund & SIF Flow Meter. This significant growth was accompanied by an even more impressive surge in investor inflows, which jumped 171% to ₹3,782 crore from ₹1,396 crore in the previous month. The strong performance reflects sustained investor interest in alternative investment strategies within the mutual fund ecosystem, with the cumulative inflows into SIFs reaching ₹17,407 crore since October 2025, indicating growing investor acceptance of the newly introduced investment vehicle. The markets regulator Sebi introduced the SIFs framework in February 2025 to bridge the gap between regular mutual funds and high-ticket Portfolio Management Services (PMS), targeting sophisticated investors through flexible hedging, derivatives, and long-short strategies.
Hybrid Long-Short Funds maintained their position as the dominant force in the SIF segment, accounting for 67% of total SIF AUM at ₹11,910 crore as of June 30, 2026, with an average folio size of ₹35 lakh. Overall, Hybrid Investment Strategies contributed 72% of total SIF AUM, amounting to ₹12,822 crore, with an average folio size of ₹32.7 lakh. Equity-Oriented Investment Strategies held the remaining 28% share at ₹5,036 crore with an average folio size of ₹14.1 lakh. Hybrid Long-Short Funds specifically attracted ₹2,043 crore in inflows during June, up 189% from ₹707 crore in May, while since October 2025, the category has received cumulative inflows of ₹11,568 crore, accounting for two-thirds of all money invested in the category. Equity-oriented investment strategies received ₹1,097 crore in June, rising 68% from ₹652 crore in the previous month, with cumulative inflows since October 2025 standing at ₹4,938 crore.
The broader mutual fund industry also recorded healthy investor participation during June, with total mutual fund AUM increasing to ₹82.2 lakh crore. Active equity mutual funds registered gross inflows of ₹67,601 crore in June, up from ₹57,604 crore in May, while net inflows into the category stood at ₹28,973 crore. Hybrid funds, excluding arbitrage funds, attracted net inflows of ₹7,163 crore in June compared with ₹4,862 crore in the previous month. Gold ETFs also showed a sharp turnaround, recording net inflows of ₹3,443 crore in June after net outflows of ₹725 crore in May. The resilience in SIP flows and recovery in equity inflows are reassuring indicators for the mutual fund industry, reflecting sustained confidence in India's long-term growth story, according to Santosh Joseph, CEO of Germinate Investor Services.
SIP contributions reached a record ₹31,781 crore in June, while SIP AUM rose to ₹17.70 lakh crore and outstanding SIP accounts increased to 10.52 crore. The sharp improvement in net new SIP registrations indicates sustained retail participation despite market volatility. Net new SIP registrations showed a significant improvement, reflecting continued retail confidence in systematic investment approaches and equity-oriented investment products. This record SIP performance underscores the growing retail participation in mutual fund investments across various categories, with investors increasingly using phases of improved market momentum to continue their long-term wealth creation journey. Joseph noted that this also highlights the maturity of investors who are increasingly using market momentum to build wealth rather than reacting emotionally to short-term volatility.
