Specialised Investment Funds (SIFs), which were launched in mid-September to attract investors with moderate risk appetite, have already seen 20,779 folios at the end of December, according to data from the Association of Mutual Funds in India (AMFI). In fact, since October, the number of folios has doubled.
Sebi had allowed mutual funds to launch SIFs in February, under which they are permitted to launch long-short funds across categories for wealthier investors effective April 1. The move was aimed at bridging the gap between mutual funds and portfolio management services (PMS) in terms of portfolio flexibility. SIFs require a minimum investment of ₹10 lakh per investor across strategies offered by a single AMC.
“Our Altiva Hybrid Long Short SIF has seen very good traction as there was a gap in existing products,”</span> said Niranjan Avasthi, senior vice president at Edelweiss Mutual Fund. He noted that initial launches by most AMCs were in the hybrid space, given the volatility in the market. When volatility subsides, Edelweiss plans to launch equity-facing strategies. “Currently, we are expanding the hybrid long-short strategy,” he said.
Quant Mutual Fund launched the first SIF in the equity long-short category on September 19. Total assets under management (AUM) under this segment have risen sharply, from ₹2,004.56 crore at the end of October to ₹4,892.32 crore by December-end.
A total of seven schemes launched as of 2025-end garnered an average of ₹409 crore at the time of NFO</span>, compared with an average of ₹204 crore from 65 NFOs in traditional mutual funds during the October–December quarter. SBI’s Magnum Hybrid Long-Short raised the highest amount at ₹1,127.6 crore, followed by Edelweiss Altiva Hybrid Long-Short at ₹613 crore.
Earlier this month, Bandhan Mutual Fund announced its entry into the SIF space with a hybrid long-short fund. ICICI Prudential Mutual Fund’s iSIF and 360 ONE Mutual Fund’s Dyna SIF have filed draft documents with Sebi. AIF- and PMS-focused Nuvama AMC, which received Sebi’s approval for the mutual fund business in October, is planning to launch its first product in the SIF segment.
However, some large mutual funds are building capabilities before launch. Chirag Setalvad, head of equities at HDFC AMC, said, <span style=”color:blue”>“We are a long-term player. So, we will do it gradually, and there are products we can do in SIFs because the construct is interesting.”</span> He added that SIFs will remain a smaller business compared to traditional mutual funds.
A. Balasubramanian, CEO of Aditya Birla Sun Life AMC, told FE that the company is targeting an SIF launch by the March quarter, with plans to explore long-short equity strategies and opportunities such as low-credit and arbitrage-plus strategies in fixed income. Nippon India Mutual Fund, which has hired Andrew Holland as head of the newly introduced asset class, is yet to announce a launch. Holland has said that launches would be similar to absolute return and enhanced return funds he earlier managed at Avendus Capital.