Specialised Investment Funds (SIFs) saw assets under management (AUM) climb 29.3% month-on-month to ₹17,857.77 crore in June, fueled by a sharp rise in inflows into hybrid strategies. The category’s rapid growth underscores investor appetite for higher-alpha alternatives between mutual funds and PMS.
Hybrid Strategies Drive SIF Growth
Hybrid investment strategies dominated SIF allocations, holding 72% of total assets at ₹12,822 crore. Within this, Hybrid Long-Short Funds alone managed ₹11,910 crore—67% of the industry’s AUM—with an average folio size of ₹35 lakh. Equity-oriented strategies accounted for the remaining 28%, or ₹5,036 crore.
Net inflows into SIFs surged to ₹3,782 crore in June, a 171% jump from May’s ₹1,396 crore. Hybrid Long-Short Funds led the charge, attracting ₹2,043 crore—up 189% from ₹707 crore the prior month. Cumulative inflows since October 2025 now stand at ₹17,407 crore.
SEBI’s SIF Framework Gains Traction
Introduced in February 2025 to bridge the gap between mutual funds and PMS, SIFs have drawn ₹11,568 crore in cumulative inflows, representing two-thirds of all investments in the category. Equity-oriented strategies saw ₹1,097 crore in June inflows, a 68% increase from May, bringing their total to ₹4,938 crore.
Broader Mutual Fund Industry Trends
The momentum extended to the wider mutual fund market. Total industry AUM reached ₹82.2 lakh crore, while active equity funds recorded gross inflows of ₹67,601 crore—up from ₹57,604 crore in May—with net inflows of ₹28,973 crore. Hybrid funds (excluding arbitrage) saw net inflows rise to ₹7,163 crore from ₹4,862 crore, signaling sustained demand for diversified asset allocation.
