Summary:
SIFs attracted ₹4,922 crore in net inflows in July 2026, surpassing several popular equity mutual fund categories despite overall equity fund inflows falling 14.8% to ₹24,697 crore. SIF assets nearly doubled from ₹10,620 crore in March to ₹23,177 crore in July, driven mainly by hybrid long-short strategies. Investors are increasingly turning to SIFs for differentiated strategies, diversification and potentially better post-tax returns. The investor base is also expanding beyond metros, with B30 cities accounting for 53% of investors.
Specialised Investment Funds (SIFs) saw continued rise among rich and mass-rich investors in July, despite equity mutual fund inflows falling by 14.8% to ₹24,697 crore. During the month, SIFs saw ₹4,922 crore net inflows, beating inflows into popular categories like flexi-cap, large & mid-cap, multi-cap and thematic/sectoral funds. SIFs saw inflows which were greater than domestic equity index funds, gold ETFs and silver ETFs too.
SIFs See Surge in Assets and Inflows
SIF monthly net inflows have risen nearly four times from ₹1,314 crore in March 2026 to ₹4,921 crore in July, while the total net asset value has risen from ₹10,620 crore to ₹23,177 crore in the said period. Altiva SIF of Edelweiss AMC, iSIF of ICICI Prudential AMC and Magnum SIF of SBI AMC have 75% share in the industry's total asset.
Among the various categories of SIF, hybrid long-short strategy was the largest contributor, garnering ₹3,258 crore net inflows in July or about two-third of total SIF inflows. Monthly net inflows into the category have risen nearly four times from ₹844 crore in March. The average ticket size also rose 16% from ₹31.93 lakh in March to ₹36.95 lakh in July, as compared to industry wide SIF average of ₹24.54 lakh.
Take a look at Specialised Investment Funds in Indian AMCs
Reasons Behind Preference for SIFs
The last two quarter of high market volatility created an environment for success of long-short and market neutral strategies. The investors are looking for differentiated investment strategies beyond the traditional long-only equity strategies, while the launch of the new schemes is helping in increasing awareness.
SIFs are also attracting the investors having portfolio size greater than ₹50 lakh. Some of the investors are shifting their portfolios from balanced advantage and equity saving funds, while some of the investors are moving out of PMS products and investing in SIFs to earn better post-tax returns. The institutional investors are also shifting their portfolio from arbitrage funds to SIFs to earn higher returns.
The hybrid long-short strategy uses derivatives and income yielding assets and might offer better returns than the traditional equity strategy. Also the category is gaining popularity among investors above the age of 60, having ₹1-2 crore retirement corpus, and using these products for monthly withdrawals.
Check Out: Gap in India's Investment Playbook: SIF
SIF Investors Base Spreading Beyond Metropolitan Cities
SIFs are catching up among the various age groups and geographies. As on June 2026, 13,685 investors in the age group of 40-60 constituted 47.6% share of SIF assets, while 8,980 investors above the age of 60 accounted for 31.3%.
The B30 cities constitute 53% of SIF investors base, while the T30 cities constitute 47%. But, the 67% of the SIF assets are held by T30 cities investors, while the rest 33% are held by B30 cities investors.
Equity Fund Flows Reflect Changing Investors' Preference
The large cap funds saw outflows of ₹1,322 crore in July, their first outflow since December 2023, compared to ₹2,067 crore inflows in June. While the small cap fund flows soared by 39% to a record ₹7,768 crore and mid cap flows increased 1.7% to ₹6,192 crore.
The flexi-cap funds drew ₹4,709 crore, large & mid-cap funds ₹3,425 crore, multi-cap funds ₹3,227 crore and sectoral/thematic funds ₹1,328 crore. The value/contra funds saw outflows of ₹145 crore.
Despite the fall in inflows, the equity funds saw net inflows for the 65th month in a row. The SIP contribution went up by 0.6% to ₹31,961 crore, just a bit lower than the all-time high of ₹32,087 crore seen in March.
SIF Mutual Funds in Invest in India 2026
Debt Funds See Net Inflows
The debt oriented schemes garnered ₹1.88 lakh crore in July, registering their first inflows in three months. The softer yields, the strong dollar inflows from FCNR(B) deposits and lower domestic debt supply expectations are creating demand for short-duration debt categories.
What's ahead for SIFs?
The SIF demand is expected to stay strong, as investors increasingly look beyond the traditional long-only products. Even, if the equity market rally dampens the appeal of the long-short strategy, but rising preference for differentiation, portfolio diversification and better risk-adjusted returns can support SIFs.
