Specialized Investment Funds (SIFs) demonstrated robust growth momentum in July 2026, with assets under management rising 30% month-on-month to ₹23,177 crore from ₹17,858 crore in June, according to the ValueMetrics Mutual Fund & SIF Flow Meter. Total inflows increased 30% to ₹4,922 crore from ₹3,782 crore in the previous month, reflecting strong investor appetite for these sophisticated investment vehicles. The growth trajectory underscores the increasing adoption of SIFs as a bridge between traditional mutual funds and alternative investments, with the framework continuing to attract experienced investors seeking advanced portfolio strategies.
Hybrid Long-Short Funds continued to dominate the SIF segment, accounting for 66% of total SIF AUM at ₹15,374 crore as of July 31, 2026, with an average folio size of ₹36.9 lakh. According to the latest data, Hybrid Investment Strategies contributed 71% of total SIF AUM, amounting to ₹16,524 crore with an average folio size of ₹34.1 lakh. Equity-Oriented Investment Strategies accounted for the remaining 29% of total SIF AUM at ₹6,654 crore, with an average folio size of ₹14.4 lakh. The overall SIF AUM stood at ₹23,177 crore at the end of July, with an average folio size of ₹24.5 lakh across 30 schemes, demonstrating the growing sophistication of investor portfolios.
Hybrid Long-Short Funds attracted ₹3,258 crore in inflows during July, up 59% from ₹2,043 crore in June, while Equity-Oriented Investment Strategies received ₹1,454 crore during July, an increase of 33% over ₹1,097 crore in June. Since October 2024, the category has received cumulative inflows of ₹14,827 crore, accounting for 66% of total SIF inflows, the highest among all investment strategies. Overall cumulative inflows into SIFs since October 2024 stood at ₹22,328 crore, reflecting sustained investor interest in these sophisticated investment vehicles. The strong performance indicates growing confidence in SIFs as a viable alternative to traditional mutual funds and alternative investments.
For years, the investment universe has been largely divided between mutual funds offering regulated, diversified products accessible to broad investors and alternative investment funds (AIFs) designed for sophisticated investors seeking private market access. As reported by The Economic Times, many investors have sought greater flexibility than traditional mutual funds can offer without stepping into the complexity or higher entry thresholds associated with alternative investments. This gap has created demand for investment vehicles capable of accommodating more specialized strategies while maintaining regulatory oversight, with SIFs now filling this critical market need through their advanced investment capabilities and regulated structure.
At Alpha Wealth Summit 2.0, Radhika Gupta, Managing Director & CEO of Edelweiss Mutual Fund, will explore 'SIFs: The Newest Sebi Asset Class', examining whether Specialised Investment Funds can bridge the gap between mutual funds and alternative investments. As reported by The Economic Times, her session will delve into opportunities, portfolio implications and key considerations surrounding Sebi's new investment framework. The summit features leading market voices including Sandeep Das, MD & CEO, Centrum Wealth Ltd; Sonam Srivastava, Founder & CEO, Wright Research; Ashish Mehrotra, MD & CEO, Northern Arc Capital; and Ravi Dharamshi, Founder & CIO, ValueQuest, addressing topics ranging from global capital flows to technology's role in portfolio management. Together, these conversations offer a comprehensive view of the forces reshaping how investors build and preserve wealth.
