Specialised Investment Funds cross ₹23,177 crore AUM in July 2026
Synopsis
India's Specialised Investment Funds crossed ₹23,177 crore in AUM in July 2026 — a 30% monthly jump — with hybrid long-short strategies driving two-thirds of that total. With nearly 1 lakh folios and more AMCs launching SIF NFOs, the segment is rapidly becoming a mainstream avenue for investors seeking alternatives to traditional long-only mutual funds.
Key Takeaways
SIF AUM rose 30 per cent month-on-month to ₹23,177 crore in July 2026 , per ValueMetrics Technologies .
Investor base reached 94,447 folios , approaching the 1 lakh milestone.
Hybrid long-short funds led with AUM of ₹15,374 crore , contributing 66 per cent of total SIF AUM.
Equity-oriented strategies posted a 32 per cent monthly gain to ₹6,654 crore .
Overall mutual fund AUM stood at ₹85.8 lakh crore in July, with net active equity and hybrid inflows of approximately ₹30,000 crore .
Specialised Investment Fund (SIF) assets under management surged 30 per cent month-on-month to ₹23,177 crore in July 2026, with 94,447 folios pushing the investor base to the cusp of the 1 lakh mark, according to a report released on 13 August 2026. The data, compiled by ValueMetrics Technologies, signals accelerating institutional and high-net-worth appetite for alternative fund structures beyond conventional long-only products.
Hybrid Strategies Dominate the SIF Landscape
Hybrid investment strategies retained their commanding lead, accounting for 71 per cent of total SIF AUM at ₹16,524 crore in July. Within this segment, hybrid long-short funds emerged as the single largest strategy, with AUM climbing 29 per cent month-on-month to ₹15,374 crore from ₹11,910 crore in June. These funds alone contributed 66 per cent of total SIF AUM and recorded an average folio size of ₹36.9 lakh — well above the overall SIF average of ₹24.5 lakh.
Equity-Oriented Strategies Post Strong Sequential Gains
Equity-oriented investment strategies were not far behind, with AUM rising 32 per cent month-on-month to ₹6,654 crore from ₹5,036 crore in June. This category contributed 29 per cent of total SIF AUM, with an average folio size of ₹14.4 lakh. The overall average folio size for hybrid investment strategies edged up to ₹34.1 lakh in July from ₹32.7 lakh in June, reflecting a steady rise in per-investor commitment.
Why Long-Short Strategies Are Gaining Ground
Manuj Jain, Co-founder of ValueMetrics Technologies, attributed the surge to sustained equity market volatility over the past two quarters, which has made market-neutral and long-short approaches more attractive. 'The equity market has remained quite volatile over the last two quarters, creating a conducive environment for the long-short and other market-neutral strategies deployed by several SIFs,' Jain said.
He added that increased asset management company activity in launching SIF new fund offers (NFOs) is broadening investor awareness. 'While a recovery in markets may moderate some of the relative appeal of long-short strategies, we believe the demand for SIFs can sustain as investors increasingly seek differentiated strategies beyond traditional long-only products,' Jain said.
Broader Mutual Fund Industry Stays Healthy
The wider mutual fund ecosystem continued its robust trajectory in July 2026, with total mutual fund AUM rising to ₹85.8 lakh crore. Net inflows into active equity and hybrid funds stood at approximately ₹30,000 crore for the month, underscoring sustained retail and institutional participation despite intermittent market turbulence.
With the investor base nearing the symbolic 1 lakh folio threshold and more AMCs entering the SIF space, the segment's growth trajectory will be closely watched in the months ahead.
Point of View
Rather than dampening participation, has redirected capital toward strategies that can profit in both directions. The average folio size of ₹24.5 lakh confirms this is still a high-net-worth playground, but the near-1-lakh folio count suggests the category is widening. The real test will come when markets stabilise: whether SIF demand proves durable or retreats to conventional long-only products will reveal whether this is a trend or a cycle trade.
NationPress
13 Aug 2026
Frequently Asked Questions
What are Specialised Investment Funds (SIFs) and how do they differ from regular mutual funds?
Specialised Investment Funds are regulated investment vehicles that deploy differentiated strategies — including long-short, market-neutral, and hybrid approaches — beyond the conventional long-only framework of standard mutual funds. They typically cater to high-net-worth and institutional investors, as reflected in the average SIF folio size of ₹24.5 lakh in July 2026.
Why did SIF AUM grow so sharply in July 2026?
SIF AUM rose 30 per cent month-on-month to ₹23,177 crore in July 2026, driven primarily by equity market volatility that made long-short and market-neutral strategies more attractive, according to ValueMetrics Technologies. Increased AMC activity in launching SIF NFOs also broadened investor access and awareness.
Which SIF strategy holds the largest share of AUM?
Hybrid long-short funds are the dominant strategy, holding ₹15,374 crore in AUM as of July 2026 — equivalent to 66 per cent of total SIF AUM. The category grew 29 per cent month-on-month from ₹11,910 crore in June.
How close is the SIF investor base to the 1 lakh folio milestone?
As of July 2026, SIFs had 94,447 folios, putting the investor base within touching distance of the 1 lakh mark. The steady rise in folio count alongside rising average folio sizes points to both new investor entry and deepening commitment from existing participants.
What is the overall state of India's mutual fund industry in July 2026?
Total mutual fund AUM reached ₹85.8 lakh crore in July 2026, with net inflows into active equity and hybrid funds at approximately ₹30,000 crore for the month, indicating continued healthy participation across both retail and institutional segments.
