SIF AUM Jumps 5X to ₹10,620 Cr in Six Months: What’s Driving Growth?

Quick Summary

Specialised Investment Funds (SIFs) have emerged as a new investment category between mutual funds and high-ticket products such as PMS and AIFs. Since their debut in October 2025, SIF AUM has risen more than 5 times to ₹10,620 Cr by March 2026, led by hybrid long-short strategies.

India’s mutual fund industry has added a new category of strategy-driven investment products with the emergence of Specialised Investment Funds (SIFs). SEBI introduced the category in February 2025, and leading asset management companies began launching SIF schemes from October 2025.

Positioned between mutual funds and high-ticket products such as portfolio management services (PMS) and alternative investment funds (AIFs), SIFs are designed to provide greater flexibility while remaining within the mutual fund framework. The category has expanded rapidly in its first 6 months, with AUM rising from ₹2,010 Cr in October 2025 to ₹10,620 Cr in March 2026. Let's understand the growth of SIFs in detail

What are Specialised Investment Funds?

SIFs represent a new segment within the mutual fund ecosystem, aimed at offering investors access to more flexible and advanced investment strategies.

SIFs are positioned between mutual funds and high-ticket products such as PMS and AIFs. They combine the tax advantages of mutual funds with the flexibility to use advanced strategies, giving investors a structured but adaptable investment approach.

Following SEBI's introduction of the category in February 2025, leading AMCs launched 4 distinct SIF strategies:

Hybrid Long-Short Fund
Equity Long-Short Fund
Equity Ex-Top 100 Long-Short Fund
Active Asset Allocator Long-Short Fund

The emergence of these 4 categories gives SIFs a broader strategy framework than a mutual fund offering. The initial response from AMCs was also rapid, with 4 schemes available when the category debuted in October 2025.

The Factbook describes the quick rollout of these products as an indication of early adoption and growing industry confidence in the new category.

SIF AUM rises more than 5 times in 6 months

SIFs have recorded rapid asset growth since their launch.

Total SIF AUM stood at ₹2,010 Cr in October 2025. It increased to ₹2,932 Cr in November, ₹4,892 Cr in December, ₹6,564 Cr in January 2026 and ₹9,711 Cr in February before reaching ₹10,620 Cr in March 2026.

This means SIF AUM increased by more than five times between October and March. In March alone, AUM increased 9.4% month-on-month, even as broader equity markets corrected sharply.

Hybrid long-short funds dominate the SIF market

Hybrid long-short funds have emerged as the clear driver of SIF adoption.

By March 2026, hybrid strategies accounted for 76.71% of total SIF AUM. Hybrid long-short funds alone represented 75.48%, while active asset allocator long-short funds accounted for 1.23%.

The remaining AUM was split between equity-oriented strategies. Equity ex-top 100 long-short funds represented 13.17% of total SIF AUM, while equity long-short funds accounted for 10.12%.

The dominance of hybrid long-short strategies has been consistent since the category's inception.

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Net inflows cross ₹11,000 Cr since inception

Strong investor flows have been another defining feature of SIFs during their first six months.

SIFs recorded ₹2,005 Cr of net inflows in October 2025. In November, inflows moderated to ₹902 Cr before rising to ₹1,933 Cr in December and ₹1,729 Cr in January 2026.

February was the strongest month for SIF flows. Net inflows reached ₹3,127 Cr, representing an 81% month-on-month increase.

Flows remained positive in March, with SIFs recording ₹1,314 Cr of net inflows. Hybrid strategies accounted for ₹974 Cr of the March inflow.

Cumulative net inflows since inception consequently crossed ₹11,000 Cr by the end of March 2026. The Factbook notes that hybrid long-short strategies drove positive flows, while equity-oriented strategies attracted more modest but growing interest.

Number of SIF schemes triples in 5 months

The expansion of SIFs has not been limited to assets. The number of schemes has also increased rapidly.

The Factbook shows that the total number of SIF schemes across all four sub-categories increased from 4 in October 2025 to 14 in March 2026. The number of schemes therefore more than tripled in 5 months.

The expansion reflects the growing participation of AMCs in the new category. More schemes have been introduced across the four strategy types, giving investors a wider selection within the SIF framework.

However, the increase in the number of schemes has not yet produced a comparable diversification in assets. Hybrid long-short funds continued to account for 75.48% of total SIF AUM in March 2026.

What the first 6 months reveal about SIF adoption

The initial 6 months provide several clear signals about the development of the SIF category.

First is speed of adoption. AUM rose from ₹2,010 Cr to ₹10,620 Cr between October 2025 and March 2026.
Second is strong flow momentum. Cumulative net inflows crossed ₹11,000 Cr by March, with February recording the highest monthly inflow of ₹3,127 Cr.
Third is strategy concentration. Hybrid long-short funds accounted for 75.48% of total SIF assets, substantially ahead of equity ex-top 100 long-short and equity long-short funds.
Fourth is rapid product expansion. The number of SIF schemes increased from 4 to 14 within 5 months.

The data also indicates that investor demand can respond to market conditions. The record February inflow was associated with higher demand for downside-protected hybrid strategies during market volatility.

However, SIFs remain a very young category. The Factbook's data covers only the period from October 2025 to March 2026. Therefore, the longer-term distribution of assets between hybrid and equity-oriented strategies has not yet been established.

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Conclusion

SIFs have made a strong start, with AUM rising more than five-fold to ₹10,620 Cr by March 2026 and cumulative net inflows crossing ₹11,000 Cr.

The early market is clearly dominated by hybrid long-short strategies, while the number of schemes has expanded rapidly. The next phase will show whether investor interest broadens across the four SIF strategies as the category matures.