SEBI's SIF Framework Draws ₹13,814 Crore And 56,000 Investors In Months

A new investment category sitting between mutual funds and portfolio management services has taken off faster than many in the industry expected.

Specialised Investment Funds (SIFs), introduced by the Securities and Exchange Board of India (SEBI) in February, had already crossed ₹13,814 crore in assets under management by May-end, a senior regulator said on Friday.

Speaking at Assocham's 17th Mutual Fund Summit, SEBI Whole-Time Member Amarjeet Singh said the early response to the framework has been encouraging, with the category accumulating over ₹13,500 crore in net assets across more than 56,000 investor folios as of 31 May 2026.

What Specialised Investment Funds Are

SIFs were created to fill a gap that has existed in India's investment landscape for years. Retail mutual funds are accessible but limited in strategy. Portfolio management services offer flexibility but require large minimum tickets and have limited regulatory oversight compared to the mutual fund framework.

Specialised Investment Funds sit in between:

• Minimum investment: ₹10 lakh per investor.

• Target audience: Sophisticated investors seeking more than standard equity or debt allocation.

• Permitted strategies: Derivatives, long-short equity, flexible hedging and other advanced approaches.

• Regulatory oversight: Full SEBI framework, unlike unregistered alternatives.

Of the 21 investment strategies launched so far, the Hybrid Long-Short strategy has attracted the most capital, reflecting investor appetite for products that can profit in both rising and falling markets.

Distribution Framework Being Standardised

SEBI and the National Institute of Securities Markets (NISM) are jointly developing a Combined Mutual Fund-SIF Distributor Certification Examination, creating a single credential for distributors handling both mutual fund and SIFs fund products. The certification is aimed at ensuring distributors understand the distinct risk and strategy profiles of both product types before selling them to clients.

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A Word Of Caution

Singh used the summit to warn investors against chasing performance driven by social media trends. Investment decisions, he said, should be anchored to financial goals, risk appetite and time horizon rather than short-term fashions amplified by fear of missing out. He pointed to life cycle funds as an example of goal-based products that help investors stay on track regardless of market noise.