Specialised Investment Funds (SIFs) recorded a 29% rise in assets under management to ₹17,858 crore in June, driven by strong demand for hybrid strategies. With hybrid funds now commanding 72% of the total assets, investors are increasingly shifting towards products that bridge the gap between traditional mutual funds and portfolio management services.
The nascent Specialised Investment Funds (SIFs) category saw its total assets under management (AUM) reach ₹17,858 crore in June, marking a 29.3% increase over the previous month. This rapid expansion highlights a growing investor appetite for financial products that offer more complex investment strategies than standard retail mutual funds.
Hybrid Strategy Dominance
The growth was primarily led by hybrid investment strategies, which attracted ₹3,782 crore in net inflows during June, significantly higher than the ₹1,396 crore recorded in May. These hybrid funds now hold 72% of the industry's total AUM, valued at ₹12,822 crore. A significant portion of this is concentrated in Hybrid Long-Short Funds, which manage ₹11,910 crore. This segment alone represents roughly 67% of the total industry assets, with investors holding an average investment size of ₹35 lakh, suggesting that these products currently appeal more to high-net-worth participants.
Growth in Equity-Oriented SIFs
While hybrid strategies dominate, equity-oriented SIFs are also gaining traction. These funds account for 28% of the total industry AUM, totaling ₹5,036 crore. In June alone, they recorded inflows of ₹1,097 crore, a 68% rise compared to the ₹652 crore seen in May. Since their launch in late 2025, SIFs across all categories have accumulated total inflows of ₹17,407 crore, indicating a consistent trend in investor interest over the last several months.
Context Within the Broader Industry
The rise of SIFs occurs against a backdrop of strong participation in the broader Indian mutual fund industry, which has seen its AUM scale to ₹82.2 lakh crore. In the same month, active equity mutual funds recorded gross inflows of ₹67,601 crore, with net inflows reaching ₹28,973 crore. Hybrid funds within the mutual fund space—excluding arbitrage schemes—also saw net inflows of ₹7,163 crore. This data suggests that the demand for diversified asset allocation is not limited to SIFs but is a theme visible across the wider investment sector.
For investors, the key monitorable will be how these funds perform across different market cycles, particularly because many of these strategies rely on more active management techniques compared to traditional funds. As the sector grows, the focus will remain on the consistency of inflows and whether these funds can maintain their performance mandates as they scale beyond their initial asset base.