Specialised Investment Funds (SIFs) have experienced remarkable growth since their market debut in October 2025. According to the latest AMFI-Crisil Factbook 2026, SIF AUM rose from ₹2,010 crore to ₹10,620 crore by March 2026, representing a more than five-fold increase in just six months. The category has attracted significant investor interest, with net inflows accelerating sharply in February 2026, recording a record ₹3,127 crore. As reported by Mint, this growth coincided with a sharp equity-market correction when investors were seeking strategies offering greater downside management.
The initial adoption is being led by affluent investors, HNIs and wealth-management clients, with the ₹10 lakh minimum investment requirement naturally attracting sophisticated investors. According to Tushar Bopche, Co-Founder and CEO of InvestValue, the category can gradually become much broader over time. Hybrid long-short strategies have dominated the category, accounting for 75.48% of SIF AUM in March 2026, while hybrid strategies overall accounted for 76.71%. These strategies typically combine long positions in equity and debt with short positions through derivatives such as index or stock futures, providing downside management during market stress.
SIFs operate between conventional mutual funds and Portfolio Management Services (PMS), combining a pooled and regulated structure with greater strategic flexibility. However, as noted by Nitin Agrawal, CEO of Mutual Funds by InCred Money, this flexibility comes with additional risks including derivatives, counterparty and liquidity risks. The number of SIF schemes has expanded from four sub-categories in October 2025 to 14 in March 2026. Experts emphasize that these funds suit conservative lump-sum investors seeking equity participation with smaller drawdowns, while traditional mutual funds can start with as little as ₹100.
Financial experts caution against treating SIFs as premium mutual funds or chasing recent performance. According to Chinmay Sathe, CIO and Head SIF at The Wealth Company Mutual Fund, investors should not choose SIFs simply because they are the latest product category, but should have a clear role in overall asset allocation. Harish Krishnan from Aditya Birla Sun Life AMC noted that growth can remain sustainable if new products offer genuine strategy differentiation. Experts recommend assessing strategy clarity, fund-manager experience, risk-adjusted returns, drawdowns, portfolio overlap, liquidity, costs and how SIFs fit into existing portfolios before investment decisions.
