Specialised Investment Funds in India: Performance, Risks, and Key Facts

India's newest investment category reached ₹9,711 crore in AUM by February 28, 2026. By late March 2026, all five live equity-oriented SIF strategies on AMFI's NAV page were below their respective issue prices.

This blog covers every SIF launched in India so far, what their actual NAVs are saying, why two funds in the same category are performing very differently, and what you need to check before putting ₹10 lakh in.

What Is a SIF and Why Did SEBI Create It?

Think of it this way. A regular mutual fund has a minimum SIP of ₹500 but follows strict rules; it can only buy stocks and is restricted from betting against them. A Portfolio Management Service (PMS) allows more flexibility but requires a minimum of ₹50 lakh to enter.

SEBI created the Specialised Investment Fund to fill the gap between these two. The minimum investment is ₹10 lakh per investor across all SIF strategies under one fund house. The fund can use more complex strategies, including taking short positions in stocks using derivatives, subject to the permitted cap.

The framework became effective on April 1, 2025. The first fund was launched in September 2025.

Every SIF That Has Launched So Far

Why Is So Much Money Flowing In?

AUM went from ₹2,010 crore in October 2025 to ₹9,711 crore by February 2026. Three things are driving this.

1. Hybrid SIFs feel familiar. They combine equity, debt, and limited derivatives. For HNI investors who already use balanced advantage funds or hybrid mutual funds, the structure is not alien. Hybrid strategies hold 76.1% of total SIF assets, ₹7,389 crore out of ₹9,711 crore.

2. February set a new record. Monthly inflows hit ₹3,127 crore in February 2026, up 80% from ₹1,729 crore in January. This is the highest single-month inflow since the category launched. A falling market and demand for downside-protected strategies likely accelerated this.

3. Strong distributor interest. Large AMCs with established distribution networks, SBI, ICICI, and Edelweiss, launched quickly and reached investors fast. Whether this AUM reflects investor conviction or distributor momentum is a fair question. The performance data will eventually answer it.

NAV Scorecard: Where Every SIF Stands Today

Hybrid SIFs

Equity Long-Short SIFs

Every equity long-short SIF has been negative since launch. Every hybrid SIF except ICICI's newer fund is either flat or modestly positive.

The two Ex-Top-100 funds, which invest only in stocks ranked below the top 100 by market cap, are the worst performers. Mid and small-cap stocks fell harder than large caps during the market correction that ran through late 2025 and early 2026. With no debt buffer and exposure concentrated in smaller companies, these funds took the sharpest hit.

One notable data point on ICICI's iSIF Ex-Top-100: despite launching in February 2026 and showing a NAV of ₹9.02, it has already collected ₹1,090 crore in AUM, the largest among all equity SIFs. Name recognition and distribution strength matter.

Five Things to Know Before Investing in a SIF

• There is no track record. The oldest SIF is six months old. That is not enough data to evaluate any strategy, particularly one that claims to protect against market falls.
• Long-short does not guarantee active shorting. SEBI allows 0% to 25% short exposure. A fund can operate as an SIF while holding zero short positions. Ask your distributor specifically what percentage of the fund is currently deployed in short positions.
• Liquidity works differently. Hybrid SIFs are interval funds that allow redemption twice a week, not daily. Equity SIFs offer daily redemption but carry exit loads, some as high as 1% within 12 months.
• The tax structure is genuinely better than PMS. For investors, SIF taxation is broadly aligned with mutual-fund taxation; for equity-oriented strategies, long-term gains after 12 months are generally taxed at 12.5% and short-term gains at 20%.
• 5x AUM growth reflects distribution momentum, not proven returns. Capital collected fast does not mean returns arrived fast. Monitor performance quarterly once these funds cross the one-year mark.

The Honest Takeaway

SIFs are a genuine structural innovation. For investors sitting between mutual funds and PMS, they offer real tactical flexibility at a regulated entry point of ₹10 lakh.

But six months of data, a market correction, and bi-monthly portfolio disclosures are not enough to evaluate whether any of these funds are doing what they claim. The hybrid category is broadly holding up. The equity long-short category is entirely in the red.

The ₹9,711 crore collected so far tells you there is appetite. What the next two to three years will tell you is whether the strategy behind that appetite is real.

Disclaimer: The content is meant for education and general information purposes only.  Past performance is not indicative of future returns. Mutual Funds are non-exchange traded products, and INDstocks is merely acting as a mutual fund distributor. All disputes with respect to distribution activity, would not have access to the exchange investor redressal forum or arbitration mechanism. Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), AMFI Registration No: ARN-254564, SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.