New Delhi: Specialized Investment Funds (SIFs) are gaining increasing traction among Indian investors, with assets under management (AUM) and investor folios registering strong growth in July 2026.
According to the Valuemetrics Mutual Fund & SIF Flow Meter, the total AUM managed under SIFs rose 30% month-on-month to ₹23,177 crore as of July 31, 2026. The strong growth was largely driven by increased investments in hybrid long-short strategies.
The number of investor folios also continued to rise rapidly, reaching 94,447 by the end of July, bringing the segment close to the 1 lakh folio milestone.
At the same time, the average folio size increased from ₹23.8 lakh in June to ₹24.5 lakh in July, indicating growing participation as well as higher average investments.
Hybrid Strategies Continue to Dominate
Hybrid strategies remained the largest segment within the SIF category during July.
They accounted for approximately 71% of total SIF AUM, with assets rising to ₹16,524 crore in July from ₹12,822 crore in June.
Although the absolute AUM increased substantially, the category’s share of total SIF assets declined marginally from 72% in June to 71% in July, as other SIF strategies also recorded growth.
The average folio size in hybrid strategies increased from ₹32.7 lakh in June to ₹34.1 lakh in July.
Hybrid Long-Short Funds Remain Number One
Within the hybrid strategy category, Hybrid Long-Short Funds continued to be the largest segment.
They accounted for around 66% of total SIF AUM, with assets worth ₹15,374 crore in July.
The category had an AUM of ₹11,910 crore in June, when it represented approximately 67% of total SIF assets.
The average folio size for hybrid long-short strategies stood at approximately ₹36.9 lakh in July.
The strong growth highlights the growing interest in strategies that can potentially benefit from both rising and falling market conditions rather than relying entirely on conventional long-only equity exposure.
Equity-Oriented Strategies Also See Strong Growth
Equity-oriented investment strategies represented the second-largest segment of SIF assets.
Their share stood at around 29% of total SIF AUM, with assets increasing to ₹6,654 crore in July from ₹5,036 crore in June.
The average folio size in this category also increased slightly, rising from ₹14.1 lakh in June to ₹14.4 lakh in July.
The growth indicates that investors are exploring specialised equity strategies alongside more traditional investment products.
SIF Net Inflows Rise 30% in July
Investment flows into SIFs also accelerated significantly during July.
The segment recorded net inflows of ₹4,922 crore in July, compared with ₹3,782 crore in June, representing an increase of approximately 30%.
Since October 2024, cumulative investments into SIFs have reached around ₹22,328 crore.
This indicates that the category is steadily developing into a notable segment within India’s broader investment landscape.
Hybrid Long-Short Funds Attract ₹3,258 Crore in July
Hybrid long-short strategies were the biggest beneficiaries of the July inflows.
They attracted approximately ₹3,258 crore during July, compared with ₹2,043 crore in June.
That represents a sharp increase of around 59% month-on-month.
Since October 2024, these strategies have attracted cumulative investments of approximately ₹14,827 crore, accounting for nearly 66% of total SIF inflows.
This continued dominance demonstrates the strong investor preference for strategies designed to manage market volatility through both long and short positions.
Equity-Oriented SIFs Receive ₹1,454 Crore
Equity-oriented investment strategies also witnessed strong investment activity.
The segment received approximately ₹1,454 crore of inflows in July, compared with ₹1,097 crore in June.
This represents growth of approximately 33% month-on-month.
Since October 2024, cumulative inflows into equity-oriented strategies have reached around ₹6,392 crore, accounting for approximately 29% of total SIF investments.
Market Volatility Supports SIF Demand
According to Manuj Jain, Co-Founder of Valuemetrics Technologies, the volatility seen in equity markets over the past two quarters has created a favourable environment for long-short and other market-neutral strategies used by several SIFs.
Jain said that the increasing number of SIF New Fund Offers (NFOs) is also helping improve investor awareness and providing investors with a wider range of specialised investment options.
The growing availability of SIF products could therefore be one of the factors contributing to the rapid expansion in both AUM and folios.
Could SIF Growth Continue if Markets Recover?
The current environment has been particularly favourable for strategies that can potentially adapt to changing market conditions.
However, Jain noted that if the broader equity market experiences a sustained recovery, the relative attractiveness of long-short strategies could decline to some extent.
Despite that possibility, demand for SIFs may remain strong because investors are increasingly looking beyond traditional long-only investment products and seeking specialised strategies designed to address different market conditions.
SIF Growth at a Glance
| Metric | June 2026 | July 2026 | Change |
|---|---|---|---|
| Total SIF AUM | ₹17,827 crore* | ₹23,177 crore | +30% |
| SIF Net Inflows | ₹3,782 crore | ₹4,922 crore | +30% |
| Investor Folios | — | 94,447 | Near 1 lakh |
| Average Folio Size | ₹23.8 lakh | ₹24.5 lakh | Increased |
| Hybrid Strategy AUM | ₹12,822 crore | ₹16,524 crore | Strong growth |
| Hybrid Long-Short AUM | ₹11,910 crore | ₹15,374 crore | Strong growth |
| Equity-Oriented AUM | ₹5,036 crore | ₹6,654 crore | Strong growth |
*Derived from the reported 30% month-on-month increase; figures may vary slightly depending on the underlying data methodology.
Key Numbers to Watch
- Total SIF AUM: ₹23,177 crore
- Monthly AUM growth: 30%
- SIF folios: 94,447
- Average folio size: ₹24.5 lakh
- July net inflows: ₹4,922 crore
- Cumulative inflows since October 2024: ₹22,328 crore
- Hybrid strategies’ AUM share: 71%
- Hybrid long-short AUM: ₹15,374 crore
- July hybrid long-short inflow: ₹3,258 crore
- Equity-oriented AUM: ₹6,654 crore
- July equity-oriented inflow: ₹1,454 crore
Bottom Line
The SIF segment is expanding rapidly, with AUM rising 30% to ₹23,177 crore in July 2026 and investor folios approaching the 1 lakh mark.
Hybrid strategies, particularly hybrid long-short funds, continue to dominate the category, accounting for the majority of both assets and cumulative inflows.
The recent market volatility has helped create a favourable environment for specialised strategies that can potentially navigate both rising and falling markets. While a sustained market recovery could reduce the relative appeal of long-short strategies, the broader demand for alternative and specialised investment approaches could continue to support the SIF segment.
Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice. SIFs can involve complex strategies and higher risks than conventional investment products. Investors should carefully read the relevant scheme documents and consult a qualified financial adviser before investing.
