SIFs gain investor traction with over Rs 38,000 crore in assets. Should investors add them to their portfolios this Diwali?
India’s Specialised Investment Funds (SIFs) crossed Rs 38,000 crore in assets in September 2026, offering flexible long-short and derivatives-based strategies. While experts see growth potential, they caution about limited track records, higher risks and the Rs 10 lakh minimum investment. Investors should assess suitability before allocating funds.
Specialised Investment Funds (SIFs) have attracted significant investor interest in India, with assets under management reaching Rs 38,000 crore in September 2026. These funds provide fund managers more flexibility to employ long-short strategies and derivatives, while still adhering to mutual fund regulations. Since the inaugural SIF in October 2025, the category has experienced rapid growth, with more fund houses introducing unique investment strategies.
Rajan Sarkar, Director & Unit Head at Anand Rathi Wealth Limited, advises investors to recognize that SIFs are relatively new products in India and have not yet demonstrated resilience across diverse market cycles. The higher minimum ticket size of Rs 10 lakh, associated with these products, may present accessibility challenges and concentration risks for investors with smaller portfolios.
Suraj Nanda, Fund Manager at Tata Asset Management, highlights the potential advantages of SIFs, such as increased portfolio management flexibility. The use of derivatives, subject to the investment objective and strategy, allows SIFs to adapt to changing market conditions and manage portfolio exposure dynamically. Nanda invites investors to reassess their risk management approach in light of the current volatile geopolitical and technological landscape, suggesting that SIFs could play a valuable role in a well-diversified portfolio.
Investors who comprehensively understand SIF strategies, the associated risks, and minimum investment requirements may consider adding SIFs to their portfolios, particularly if their investment objectives and risk profile align with these funds. As of September 2026, SIF assets stood at Rs 38,287 crore, representing a 22.8% increase from the previous month and reflecting strong inflows of Rs 7,578 crores driven by hybrid and equity-oriented strategies.
Experts recommend a cautious approach to integrating SIFs into an investment portfolio. While SIFs offer differentiated strategies and flexibility, they also carry distinct risks, such as high minimum investment requirements and potential concentration risks. Given their novelty and the evolving market landscape, investors should carefully evaluate how SIFs fit within their existing portfolio allocation and overall investment strategy before adding them to their portfolios this Diwali.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
