Specialised Funds AUM Soars 29% to ₹17,858 Cr: Hybrid Dominates

THE PIP (TL;DR)

Understanding the growth in Specialised Investment Funds reveals how sophisticated investors are diversifying their portfolios.

Assets under management (AUM) for Specialised Investment Funds (SIFs) surged 29% month-on-month to ₹17,858 crore by June 2026, according to Amfi data. Robust investor inflows, particularly into hybrid investment strategies, fueled this significant expansion. This trend highlights the increasing acceptance of SIFs as a bridge between traditional mutual funds and high-value Portfolio Management Services (PMS).

Specialised Investment Funds (SIFs), designed for sophisticated investors, witnessed a substantial 29% increase in their Assets Under Management (AUM) during June 2026. This pushed their total AUM to ₹17,858 crore, a notable rise from ₹13,814 crore recorded in May, as per data released by Amfi. Monthly inflows into SIFs also saw a sharp uptick, climbing to ₹3,782 crore in June from ₹1,396 crore in the preceding month.

The primary driver behind this growth was the strong investor appetite for hybrid investment strategies, which now command a significant 72% share of the total SIF AUM, amounting to ₹12,822 crore by June 30. Specifically, hybrid long-short funds alone contributed ₹11,910 crore, making up 67% of the industry’s overall SIF AUM. The SIF framework, established by markets regulator Sebi in February 2025, serves to bridge the gap between conventional mutual funds and high-value Portfolio Management Services (PMS), offering flexible hedging and derivatives strategies.

While SIFs cater to a specific segment of sophisticated investors, their rapid expansion and the preference for hybrid long-short funds indicate a broader market trend towards diversified and adaptable investment approaches. For those looking at their wider portfolios, this underlines the increasing complexity and innovation within India’s investment landscape, moving beyond traditional equity or debt allocations. The cumulative inflows into SIFs, reaching ₹17,407 crore since October 2024, affirm growing investor confidence in these newer, more dynamic investment vehicles.

This growth in specialised funds occurs amidst a robust broader mutual fund industry, which saw its total AUM climb to ₹82.2 lakh crore in June. Active equity and hybrid funds collectively drew net inflows of approximately ₹36,000 crore, reflecting sustained investor participation. Remarkably, Systematic Investment Plan (SIP) contributions hit a record ₹31,781 crore in June, pushing SIP AUM to ₹17.70 lakh crore. The number of outstanding SIP accounts also expanded to 10.52 crore, showcasing continued retail investor maturity and a long-term approach to wealth creation despite market fluctuations.

ONE THING TO CONSIDER TODAY

Now is an opportune moment to review your existing portfolio’s diversification strategy and understand how different investment vehicles, including newer ones like SIFs, fit into the broader market ecosystem.