Hybrid long-short funds drive 70% of SIF AUM in May 2026: ValueMetrics
Synopsis
Hybrid long-short funds now command 70% of India's SIF market with ₹9,709 crore in AUM and the highest cumulative inflows since October 2024. As SIP contributions cross ₹30,000 crore for the second straight month and total mutual fund AUM hits ₹81.6 lakh crore, the data points to a maturing, multi-layered investor base — with high-net-worth money flowing into alternatives even as retail participation deepens.
Key Takeaways
Hybrid long-short funds held 70% of total SIF AUM in May 2026 , amounting to ₹9,709 crore .
Total SIF AUM stood at ₹13,814 crore as of 31 May 2026 , per the ValueMetrics report.
Monthly SIF inflows rose 15% month-on-month to ₹1,396 crore in May; cumulative inflows since October 2024 reached ₹13,625 crore .
SIP contributions remained strong at ₹30,954 crore , with SIP assets at ₹17.12 lakh crore .
Gold ETFs recorded net outflows of ₹725 crore in May, reversing earlier inflow trends.
Total mutual fund industry AUM reached ₹81.6 lakh crore in May 2026.
Hybrid long-short funds accounted for 70 per cent of total Specialised Investment Fund (SIF) assets under management in May 2026, with an aggregate corpus of ₹9,709 crore and an average folio size of ₹33.9 lakh, according to a report released by ValueMetrics on 11 June 2026. The data underscores the category's dominance in India's still-nascent SIF ecosystem, which crossed the ₹13,814 crore mark as of 31 May 2026.
SIF AUM at a Glance
Total SIF assets under management stood at ₹13,814 crore at the end of May, with an overall average folio size of ₹24.3 lakh, according to the ValueMetrics report. Equity-oriented strategies contributed the remaining 28 per cent of SIF AUM, amounting to ₹3,843 crore with an average folio size of ₹14.1 lakh — significantly lower than the hybrid long-short average, reflecting the higher ticket sizes drawn to the latter category.
Monthly Inflows Show Steady Momentum
Month-on-month total SIF inflows reached ₹1,396 crore in May 2026, approximately 15 per cent higher than the ₹1,219 crore recorded in April 2026. Cumulatively, total SIF inflows since October 2024 have reached ₹13,625 crore, signalling sustained institutional and high-net-worth interest in the product class.
Hybrid long-short funds alone attracted ₹707 crore in May, up roughly 8 per cent from ₹651 crore in April. Since October 2024, the category has pulled in ₹9,526 crore — the highest cumulative inflow among all SIF strategies. Equity-oriented strategies received ₹652 crore in May, a sharper 36 per cent jump from ₹478 crore in April, with cumulative inflows since October 2024 at ₹3,842 crore.
Broader Mutual Fund Industry Performance
The wider mutual fund industry maintained steady momentum in May 2026. Total industry AUM reached ₹81.6 lakh crore, while net inflows across active pure equity and hybrid categories combined stood at ₹33,468 crore. Active equity mutual funds logged gross inflows of ₹57,604 crore during the month, and active equity net flows came in at ₹22,908 crore.
Hybrid funds, excluding arbitrage, attracted ₹4,862 crore in net inflows. Notably, Gold ETFs saw net outflows of ₹725 crore in May 2026, reversing the strong inflow trend observed earlier in the year — a shift that analysts may attribute to profit-booking after gold's multi-month rally.
SIP Contributions Remain Robust
Systematic Investment Plan (SIP) contributions held firm at ₹30,954 crore in May 2026, reflecting sustained retail investor participation despite intermittent market volatility. Total SIP assets stood at ₹17.12 lakh crore, reinforcing the structural shift toward disciplined, long-term investing among Indian households. This is the second consecutive month SIP contributions have crossed the ₹30,000 crore threshold, a milestone that would have been considered ambitious just two years ago.
With SIF inflows on an upward trajectory and retail SIP participation holding strong, the next few months will test whether hybrid long-short strategies can sustain their outsized share as broader market conditions evolve.
Point of View
000 crore is the more structurally meaningful data point, representing genuine retail depth that hybrid long-short AUM does not yet reflect.
NationPress
12 Aug 2026
Frequently Asked Questions
What are Specialised Investment Funds (SIFs) in India?
Specialised Investment Funds are a regulated investment category in India designed primarily for high-net-worth and institutional investors, offering strategies such as hybrid long-short and equity-oriented approaches. As of May 2026, total SIF AUM stood at ₹13,814 crore, according to the ValueMetrics report.
Why do hybrid long-short funds dominate SIF AUM?
Hybrid long-short funds account for 70% of SIF AUM largely because they attract higher-ticket investments, reflected in their average folio size of ₹33.9 lakh compared to ₹14.1 lakh for equity-oriented strategies. Their ability to take both long and short positions appeals to sophisticated investors seeking returns across market cycles.
How did SIF inflows perform in May 2026 compared to April?
Total SIF inflows rose approximately 15% month-on-month to ₹1,396 crore in May 2026, up from ₹1,219 crore in April. Hybrid long-short inflows grew 8% and equity-oriented strategy inflows surged 36% over the same period.
What does the SIP data for May 2026 indicate?
SIP contributions held at ₹30,954 crore in May 2026, marking the second consecutive month above the ₹30,000 crore mark and signalling sustained retail investor commitment despite market volatility. Total SIP assets reached ₹17.12 lakh crore.
Why did Gold ETFs see outflows in May 2026?
Gold ETFs recorded net outflows of ₹725 crore in May 2026, reversing the strong inflow trend seen earlier in the year. The reversal is widely attributed to profit-booking after gold's extended rally, though the ValueMetrics report does not specify a single cause.
